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Week 01 Cloud Concepts
Cloud Computing is the delivery of computing services over the internet, enabling
faster innovation, flexible resources, and economies of scale.
On-Demand
Self-Service
Network/ internet
These three concepts are closely related in the context of cloud computing and
modern IT infrastructure. On-demand refers to the ability to access and use
computing resources (like processing power, storage, or software) as needed,
without delay. This is made possible by self-service platforms, where users can
independently provision and manage these resources through a user-friendly
interface, without needing to contact IT staff. This on-demand, self-service
access is typically delivered over a network/internet connection, allowing users
to connect to these resources from anywhere, anytime. This combination enables
flexibility, scalability, and efficiency in managing IT needs.
Data Centres Details
Create a virtual machine on Microsoft Azure
Public Cloud
Owned by cloud services or a hosting provider.
Provides resources and services to multiple organizations and users.
Accessed via a secure network connection (typically over the internet).
Private Cloud
Organizations create a cloud environment in their data centre.
The organization is responsible for operating the services they provide.
Does not provide access to users outside of the organization.
Hybrid Cloud
vehicles Timing of Expense Upfront, one-time cost^ Ongoing, recurring costs
Impact on Value Asset value depreciates over time Expenses are consumed immediately Accounting Treatment
Capitalized on the balance sheet and depreciated over time
Expensed immediately on the income statement
Tax Implications Depreciation can be deducted over time, reducing tax liability
Expenses are typically deductible in the current period
This table provides a concise comparison of the key differences between CapEx
and OpEx.
Imagine you're a supermarket owner. Buying a new freezer to store frozen goods
is CapEx – it's a big, one-time expense for equipment that will last for years. On
the other hand, buying groceries to stock the shelves is OpEx – these are ongoing
costs for items that will be sold quickly. The freezer is an investment that helps
you operate, while the groceries are part of the daily cost of running the business.
Consumption-Based Models
Imagine a consumption-based model like paying for your electricity. You only pay
for the amount of electricity you actually use each month , not a fixed price. This
is how some businesses operate now, especially with cloud services. Instead of
buying a whole software package or server space , they only pay for what they
use, like computing power or storage, as they need it. This is flexible and helps
avoid wasted resources.
A real-life example is Amazon Web Services AWS. Companies using AWS for
their websites or apps don't pay a fixed monthly fee. Instead, they're charged
based on how much data they store, how much computing power they use, and
other factors. This allows small startups to only pay for what they need when
starting, and large companies to scale their usage up or down based on demand,
avoiding unnecessary costs.
Assume you are going to a supermarket. You purchase for your groceries. If you
just bought some fruits today, you just pay for fruits; you donʼt need to pay for
beef, chicken, fish, or others that are not shown up in your shopping cart.
Otherwise, itʼs likely that you own a supermarket and you actually purchase
everything for your business, but some of them may turn bad if they are not sold
at the end of the day or week, depends on their quality and production date.
Iaas vs PaaS vs Saas
Infrastructure as a Service
Build pay-as-you-go IT infrastructure by renting servers, virtual machines,
storage, networks, and operating systems from a cloud provider.
Platform as a Service
Provides an environment for building, testing, and deploying software applications
without focusing on managing underlying infrastructure.
Software as a Service
Users connect to and use cloud-based apps over the internet, for example,
Microsoft Office 365, email, and calendars.
Feature IaaS Infrastructure as a Service)
PaaS Platform as a Service)
SaaS Software as a Service)
What it provides
Basic building blocks: servers, storage, networking
Platform for development & deployment: OS, databases, middleware
Ready-to-use software applications
Control level
Highest - you manage OS, middleware, applications
Moderate - you manage applications and data
Lowest - you just use the application
Flexibility
Most flexible - customize everything
Less flexible, but easier to deploy applications
Least flexible, but easiest to use. Pay as you go more matters for SaaS, even though itʼs available for all three of these options.
Examples
AWS EC2, Google Compute Engine, Azure Virtual Machines
AWS Elastic Beanstalk, Heroku, Google App Engine
Google Workspace, Salesforce, Dropbox