Journal of PayDeg
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  Cloud computing is a set of technologies and business practices that enable companies of all sizes to build, deploy, monitor and scale applications using resources accessed over the internet.
  • Cloud computing is replacing large Corporate Data Centers and unnecessary, expensive private server infrastructure.
  • Web 2.0, SaaS, Enterprise and government users are adopting cloud computing because it eliminates capital investment in hardware and facilities as well as reduces operations labor

When we look at the hype cycle for Cloud Computing(2011) -->> picture at right side; according to Gartner the adaption to

  • Hybrid cloud
  • Cloud security
  • Collaboration services
  • Public cloud services
will take place in 5 to 10 years

What is Cloud computing?

Eucalyptus is one of the more bare-bone pure-play cloud solution, and aimed at more advanced administrators and developers. And Eucalyptus also has strong public cloud onnectivity.

And if we look at the table of Use cases vs Service levels below, Eucalyptus is in the box of Multi Cloud Services on IaaS..

Use cases vs Service levels

Private VS Public

Let's compare the benefits;

Private :

  • Reduced Risk
  • Increased operational control
  • Improved security & trust
  • Greater Flexibility
  • Better IT visibility

Public :

  • Increased utilization
  • Reduced time to market
  • Increased agility
  • Improved collaboration
  • Decreased costs

Are clouds provide infinite scale?

Certainly, public clouds like those operated by Amazon or Google certainly comprise larger resource pools than most individual users or organizations could use IaaS.

In practice if there were a small user community and each user were not quota limited then cloud resource availability would be in the notion of infinite.

However, even the largest clouds would run short of resources when individual users make large requests simultaneously. For these users, the cloud does not appear infinite.

Therefore, public clouds put some limit for a "standard" user can control to a small quota. Special users can increase the quota, but no users are allowed to consume a substantial fraction of the total resource pool. for fear of causing a resource shortfall.


The majority of public cloud users who implement dynamically scaling web sites, most of the time have quota larger than these web sites typically require thereby cloud is providing the illusion of infinite scale.

Cloud Computing

Success with Cloud computing

What Cloud brings to economies?

During the economic time of recession, there are huge cost-reduction pressures and cloud computing allows businesses to do just that by tapping into cloud computing platforms on a pay-as-you-go basis
  • Decreased maintenance/upgrades
  • Improved resource utilization—elasticity, flexibility, efficiencies
  • Improved collaboration capabilities
  • Reduced information technology (IT) infrastructure needs—both up-front and support costs
  • Improved economies of scale
  • Ability to engage in usage-based pricing
  • Capacity for on-demand infrastructure and computational power
  • Green-friendly—reduced environmental footprint

What will drive the savings?

  1. Collaboration tools
  2. Email
  3. Administrative applications
  4. Conferencing software
  5. Mission applications
  6. Program or project management

Pros & Cons of Cloud Computing


  • Reduced Hardware equipment for end users
  • Improved Performance
  • Lower Hardware and Software Maintenance
  • Instant Software Updates Accessibility
  • Less Expensive (Amazon example)
  • Better Collaboration
  • Pay for what you use
  • Flexible


  • Security Issues (#1 concern)
  • Internet connection
  • Too many platforms Location of Servers
  • Time for Transition
  • Speed

Any relations to Amazon?

Launched in July 2002, Amazon Web Services provided online services for other web sites or client-side applications.

Amazon Elastic Compute Cloud “Amazon EC2

  • web service interface that provides resizable computing capacity in a cloud
  • designed to make web-scale computing easier for developers
  • reduces the time required to obtain and boot new server space from weeks to minutes
  • allows developers to pay only for capacity that they actually use

Today, instead of simply assuming that you’ll be buying and operating your own servers, storage and networking, AWS is always an option to consider, and for many new businesses, it’s simply the default choice. Thinking the economics of the choice between self-hosted and cloud provider, “10 cents an hour,” is so atractive particularly as a function of demand distribution. When we look at the Zynga's case, for economic reasons they used AWS first. Now they use their own infrastructure for baseline loads and use Amazon for peaks and variable loads surrounding new game introductions.

Since apis are supporting AWS, it is much more easy to combine on-site to off-site if you decide to use Eucalyptus on-site. Therefore, I recommend to use Aws first to understand and to see how cloud computing it is fitting your status, then you may use Eucalyptus on-site to have your own infrastructure. Afterwards it will be easy to combine those too like Zygna did..


<< -- You may see the numbers about cloud savings while US Federal government adopting the Cloud Computing at the left side picture. As you may see they saved about 7% and Cloud Computing is only 11% of their IT budget..

Here are some more numbers;

Security concerns and Virtualization

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