Leon's technical blog covering topics such as Cloud Computing, Cloud Storage, Big Data architectures, issues and other knowledge information. Cloud Computing is at its early developmental stages and so far, efforts have been devoted into developing its functionality in order to provide easy access of services to end users within certain focused contexts. My supervisors Yike Guo and Li Guo for providing me with most welcome support throughout my project. Antony Teoh for helping me with some aspects of the implementation involving XML schema and JSP.
Discovery Science research group members: Xiangchuan Tian, Michelle Osmond, Ghanem Moustafa, Anthony Rowe for their valuable support and feedbacks. Cloud Computing is regarded as the next wave of IT evolution for individual researchers, companies, and governments. One of the controversies floating around the cloud computing community is whether cloud computing is going to be the next hot commodity. After leading cloud provider Amazon launched their Spot Instances service, the path to commodity computing has become clearer. Several Cloud Computing providers are now offering a number of cloud hosting products, implicating variety among the virtual machine instances which are to be purchased and consumed on a Pay-per-Use or Pay-as-You-Go basis. It is possible that a combination of the global economic downturn and climate change are the factors which changed the way IT is delivered.
This report will explore the different phases of the project from the background research phase to the conclusion phase, providing an insight into the different pricing models that can benefit both cloud service providers and end users. Cloud Computing is a new innovative technology that is still to be fully studied and developed.
This project studied how different economic and pricing models can be applied to cloud computing. Scheduling: A genetic time-based scheduler that supports different pricing models has been developed.
At present, this economic support system exposes its functionalities through a common user interface. In conclusion, the study has developed a cloud economic support system and proved it to be successful after a period of extensive testing.
Cloud computing technology is still in an evolving stage, a large amount of research can undoubtedly be done in various areas such as cloud security, economic and pricing models, and resource scheduling.
Today, many e-commerce businesses are still not completely market-oriented since all the pricing models and mechanisms for trading goods between buyers and sellers are predefined and set by the e-marketplace providers.
A possible approach is to design a cloud computing economic and pricing language, by which any economic and pricing model can be described. As the path to commodity computing has become clearer, it will be essential to have a cloud computing resource exchange platform to offer spot, forward and options contracts for cloud computing resources. Cloud computing resource delivery differs from that of common commodities such as metal and agricultural products. One possible solution is to establish delivery standards that all cloud service providers have to follow if they want to list their computing resources on the cloud computing resource exchange platform.
In theory, cloud computing offers a fairly straightforward model for consuming compute and storage resources. Net3 Technology offers a white glove approach that encompasses planning, constructing and supporting your business and cloud needs.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. While reports vary these days on the exact level of demand for cloud computing by businesses, it's clear that there is fairly broad general interest if the features and cost are right and the risks are reasonable. The real question for many IT departments is whether the cost of transition to an external compute cloud will be low enough to benefit from any medium-term savings. For those planning their cloud usage, you can use Amazon's handy cloud services calculator to run your own scenarios. You can't pay more for better uptime and existing SLAs are not sufficient for important business systems. We have several EC2 instances running for our Talend and QuickBase dedicated web-service addons and have been very pleased. The continued cost reductions from Cloud providers show that Clouds are becoming a viable option for many Enterprise Data Centers.
The key obstacle in assessing the cost of a cloud offer remains the lack of an industry wide measure of cloud processing capacity. Combining all the resources and dividing by price yields the Cloud Price Normalization index and a ranking of cloud offers.

Dion Hinchcliffe is an internationally recognized business strategist and enterprise architect who has worked for more than 20 years bringing innovative solutions to clients in the Global 2000, federal government and Internet startup community. This is a roadmap of open source middleware capabilities across a diverse set of application requirements. In part two of Joe McKendrick's recent podcast with Miko Matsumura, chief strategist for Software AG, they talk about how SOA and IT systems need to change and grow and adapt with the organization around it. Phil Wainewright interviews David Vap, VP of products at RightNow Technologies, and finds out how sharing best practices can help businesses understand how best to engage with online communities. Scott Hebner, Vice President of Marketing and Strategy for IBM Rational, discusses a topic on the top of every company's mind today: getting the most from IT investments. In BI, this tough economy and the increasing role of Web 2.0 and MDM are certainly topics on people's minds today. Deepak Singh, President and CTO of Adeptia, joins ebizQ's Dennis Byron in a podcast that gets its hand around the trend of industry-specific BPM. Nevertheless, it is still a new computing paradigm which simplified the management of offering resources and services to the general public, emerging as a technology that most IT professionals strive to analyse. Existing cloud economical solutions, pricing models and financial instruments used in the conventional economic systems such as the commodity and utility market were thoroughly scrutinised and analysed.
The wide scope of computing resources provided by Cloud Computing has opened up a whole range of opportunities for every field of study, from scientific research to financial services. In fact, many are convinced that rapid growth of Information Technology is turning computing services more and more into a commodity provided through utility-like services. However, in the 1930’s, almost all businesses decided to rely on the electricity supplied from a national grid. Through this first step, the idea of utility computing and cloud commoditization is becoming more of a reality. For this reason, cloud service providers are driven to contribute to the cloud computing world’s growth by improving their services.
It analysed several pricing models by going through the literatures of commodity and utility markets and found several models that can be directly integrated to cloud computing as they share large amount of common properties.
The model of utility computing separates the billing mechanisms from traditional forms of dedicated or shared server hosting. It also serves the implementation of spot and forward market as these sorts of markets are heavily time-sensitive. Presently, it is deployed on top of the IC-Cloud infrastructure and directly benefits the IC Cloud with all the aforementioned features.
Throughout this project, I have been trying to find a genetic solution of creating a system that simply allows cloud infrastructure providers, software providers and service providers to publish their goods and services using their own pricing models and mechanisms in the cloud marketplace.
This will enable end users (marketplace users) to develop and evolve their own models in the IC-Cloud marketplace. Cloud computing service providers may have different cloud architectures and system environments. The takeaway from the homework you did in finding your applications’ value to the business was understanding the hierarchy of your applications.  (See last blog) The applications at the top tier are most critical to the business and thus require higher service levels and the applications on the lower tiers respectively have lower service level needs.
Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Both Microsoft and Amazon offer almost identical pricing for Windows instances while Google App Engine is not even a player in Windows compute clouds.
GAE is one of the most granular of the cloud computing services, only requiring for you to pay for what you actually use (for example, you have to commit to at least an hour of compute time at a time from Amazon) but does not provide a major cost advantage for large applications. It's unclear why, given open questions about cloud reliability, why no vendors will offer differentiated service where enterprises can pay more for a better SLA. In the meantime, expect few changes from the big players until after Azure launches and limited ones from the smaller players, which often use services such as EC2 to provide their own offerings. How did it affect your decision to switch (or not) from internal infrastructure to the cloud?
And keep in mind if your limits are beyond the current plans, custom options are available.
This will end up being an opportunity for other vendors entering the space though I expect the Big 3 listed here will improve their SLAs over time as they mature. The results garnered were used to design a flexible and generic cloud economic support system that was deployed and tested on top of the IC Cloud Infrastructure.
Initially, many companies worried about outsourcing their needs to an external supplier, but soon they realised that in-house generation was no longer cost-effective. With the demand for improvement and development, deploying an architecture that is market-oriented, supply and demand directed, and quality-of-service regulated is now proving to be critical.

These are Pay-as-You-Go, Pay monthly, Pay-per-Use, and creating Spot and Forward contracts.
The cloud billing system is able to calculate usage costs based on dynamic use, and then generate invoices or bills and carry out necessary actions on the user’s VM instances according to their selected pricing plans. In addition, their most difficult challenge is to seamlessly transfer workloads and data from one provider to another upon delivery. There are undoubtedly cheaper offerings from smaller clouds but they are less likely to be suitable for enterprise use, though certainly there are exceptions.
After thorough examination and testing, this support system was proven to be an effective tool which can assist further researches and studies on different pricing and economic models that could potentially benefit the cloud industry.
Cloud computing users can then be the end-users who consume cloud computing resources, and the investors who can make profit by trading the financial products of cloud computing as well. One distinction separates different cloud computing providers’ services is not just the price of specific resources, but what resources and how these resources are actually metered and billed. It covers areas unique to the cloud IaaS services environment such as the pricing model, service channels, acceptable security and controls framework and key vendor assessment criteria. We don’t need to be an expert or have total control over the technology and infrastructure that delivers our power. Furthermore, various economic pricing models from the real world market can be adopted by Cloud Computing to provide more opportunities and better services to end-users. In general, a cloud billing system should be able to provide a more flexible and scalable tool that is essential for any cloud computing service.
As Microsoft gets ready to launch Azure and Google App Engine gets serious about the enterprise, expect pricing models to get even more competitive.
Amazon Web Services cloud: The battle is on]451 found that there is a large differentiation among providers when it comes to pricing, which it says is because the market is still a€?finding its feeta€? so there are not standards for anything across providers, and especially with pricing.
Cloud service providers can deliver computing power in a much more cost-effective manner compared to most interval IT infrastructures. The high percentage of respondents indicating their preference for annual contract-based pricing indicates lack of clarity on the cloud’s financial model. Through cloud computing, companies can turn massive and risky investments into more predictable and manageable variable costs. Furthermore, comparing the total price of an application between providers a€“ and working out the value of a number of offerings a€“ is a difficult task.a€?There are some themes though. Further analysis indicates that the majority of the respondents opting for an annual contract-based model are the large enterprises, while the majority of the SMB segment prefers the resource-based usage model.At this stage, a single pricing model is unlikely to satisfy all potential customers in the market. In addition, Cloud Computing can easily be implemented as well, for it does not require advanced IT skills.
Many consumers start using the cloud by testing it out, rather than committing to a long-term use.
Vendors need to have pricing structures that are easily understood, transparent and offer substantial benefits in terms of cost savings. Most cloud providers make this easy by providing pay-as-you-go pricing of cloud services, meaning that consumers request a service, it is spun up and users only pay for the amount of services theya€™ve requested. Once a user gets more comfortable using the cloud, they can use alternative pricing models, such as reserving instances for a longer period of time (such as for up to a year) to secure lower costs.Other general ways that cloud companies break down the pricing include whether the virtual machine is in a multi-tenant or dedicated environment, or some cloud companies offer a€?spot-marketa€? pricing in which users bid on excess capacity in the providera€™s cloud. Costs are split up by compute, storage and networking use and charged on a per GB basis, and often customers do not anticipate the networking and storage costs. Complicating the issue is the fact that of the out of more than 60 IaaS providers 451 examined, 36% did not provide pricing metrics on its website. For all these reasons, 451 recommends evaluating providers based on not just price, but features as well. Providers should refer to Appendix D for an initial guidance on security areas to be considered for cloud adoption.While vendor lock-in and lack of guidance are perceived to be challenges to cloud computing adoption, interoperability and vendor support network are not rated very high on the criteria list of vendor assessment. This indicates that both these factors can be expected to be barriers to adoption and associated with the environment rather than as differentiating factors between vendors.
Can be done in a recurring plan as well.451 provides a list of pros and cons for each of these methods from both the provider and consumer point of view.
With cloud IaaS services being a new business and operational model, a high degree of customer interaction during the sales cycle and a strong support framework will assist customers in adopting the technology seamlessly. The report does not detail the actual price of cloud computing resources, likely because those change frequently as part of what some have dubbed a price war and race to the bottom among IaaS providers.

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