What does cloud mean – and what are the real advantages?

We’re in 2019 and it seems like new software projects are designed for the cloud. Seems like. Maybe this it not true yet despite of all the hype – but what does ‘cloud’ mean? What are the drivers to use it, and what are the benefits?

Once more the internet is the big game changer. Network bandwidth at close-to-zero cost and with high availability enabled the shift of IT workloads. Software that had been running on company servers and internal data centers is gradually transferred to cloud providers – e.g. Amazon Web Services (AWS), Microsoft Azure and the Goggle Cloud, to name the 3 largest ones.

Data Center
Photo by Tanner Boriack on Unsplash

What is “the cloud”?

These companies run huge data centers and sell their compute power in small slices to the masses. Of course IT and software still run on server hardware – but for the users it doesn’t feel like this any more. Users of cloud services are completely shielded from the physical hardware. They don’t need to think about all the basic installation and maintenance work that was usually required to get a large number of computers up and running. To backup their data, upgrade and patch the operating system etc. The ‘cloud’ has established a high-level abstraction for all this and made it easy to consume compute power as required.

What started more than 10 years ago with some simple storage services as a sideline business of an online bookstore has since then grown into an incredibly versatile web of services ranging from virtual machines and networks to databases, caches, load balancers, streaming engines and many more basic building blocks of current cloud systems. All of this is available on demand within seconds or minutes. Performance KPI’s can be selected and scaled as required. The cloud provider takes care of all the necessary heavy lifting in the background – highly automated and with redundant infrastructure that usually spans multiple data centers. The user just consumes, and only pays what he needs.

Unlimited scalability

Need to set up a website for 200 users? 5 minutes and we’re online. Need to scale up to 1 million users? Just a few more minutes and here we go. Need to add a terabyte-size database cluster? Minutes again and the system is ready. Compare this to the weeks of planning, ordering of hardware, system installation and configuration that would have been required to set everything up locally. And now assume that the system was only needed for a 3-week marketing campaign. No problem, let’s stop and remove all services when it’s over, and the cost goes back down to zero immediately.

This is the power of the cloud. Virtually unlimited resources and flexibility, on-demand consumption of services and pay-as-you-go pricing models.

Are Cloud systems cost efficient?

Is the use of cloud resources always cost efficient? It depends. The huge system for the 3-week marketing campaign is most likely very cost efficient. Now if you think about replacing your well managed local company servers and databases by cloud resources – depending how it is done you may end up with lower or even higher cost than today. Adopting the cloud usually means much more than just re-locating existing servers as they are – this would be called lift & shift. Check out this article for more. One thing that is not always easy with cloud services is exact pricing. Since you pay for the resources ‘as required’ and resource cost may depend on load, data volume and other dynamic factors the overall system cost may vary over time. Use the cost estimation tool of your favorite cloud provider and fill it with 2 or 3 typical load scenarios. This should give you a good idea about monthly cost and also highlight your major cost drivers.

Should all software run in the Cloud?

Cost aside, is each and every workload suitable for the cloud? Again it depends. Despite high reliability of networks and globally distributed redundant infrastructure – it is nearly impossible to achieve the latency and robustness of a local system with a cloud based approach. And you would rather not consider a cloud based approach if your compute requirements are extremely simple and need to be very low cost. You would most likely not shift the control program of your washing machine to some cloud, just put it onto a 5$ chip and use it for the next years. Which also eliminates the need to connect your washing machine in some way or another to the cloud…

Are Cloud Systems secure?

Finally let’s talk about security. For many decision makers this is the most critical question when deciding for or against a cloud based solution. Is critical data safe in some providers cloud data center, from which you don’t even know where exactly it is located? And where your data is stored side by side with data of millions of other customers? The answer is most likely yes, but as always when it comes to security it also depends. Security always requires measures on multiple levels. It starts with the operating system of the servers, the configuration and administration of the various application layers, the approach for authentication and authorization, backup, encryption etc.

Security on autopilot?

When consuming cloud services you can count on your provider to do his part if the job. But you still have to look after yours. An example: the cloud database service you are using may provide these encryption and backup features. But it’s up to you to turn them on and manage the keys and access permissions appropriately.

In any case all capabilities for building of highly secure solutions exist – but they need to be used appropriately. Compared to some locally managed PC your data will most likely be much more secure in the cloud. And the overall system can have higher availability and automatable backup if configured correctly.

When it comes to sharing and redistributing of data cloud solutions really shine. It is far easier to provide managed access to data located within some cloud resource compared to securely opening up your local system to outside access via the internet. So security is an area of concern, but nothing that should keep you away from using cloud systems.


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