Chapter The Cloud “No, I mean 25 cents an hour and probably less.” • • • • • • Using traditional, third-party hosting service whose servers not elastic Web hosting costs rising rapidly Lucas suggests using Web servers and databases in the cloud Cloud storage: $50/mo plus 25-cents per hour for processing time used Need to store large 3D printing design files Storage requirements depends on uncertain sales volume Copyright © 2016 Pearson Education, Inc 6-2 Study Questions Q1: Why is the cloud the future for most organizations? Q2: What network technology supports the cloud? Q3: How does the cloud work? Q4: How organizations use the cloud? Q5: How can AllRoad Parts use the cloud? Q6: How can organizations use cloud services securely? Q7: 2025? Copyright © 2016 Pearson Education, Inc 6-3 Q1: Why Is the Cloud the Future for Most Organizations? • The Cloud – Elastic leasing of pooled computer resources via Internet – Elastic Leased computing resources, dynamically increased/decreased, programmatically, organizations only pay for resources actually used – Flexibility for unpredictable demand while limiting financial risks Copyright © 2016 Pearson Education, Inc 6-4 Example of a Video Banner Ad Customer Copyright © 2016 Pearson Education, Inc 6-5 Pooled • Cloud resources pooled – Many organizations share same physical hardware through virtualization • Benefit from economies of scale – Average cost of production decreases as size of operation increases – Major cloud vendors operate enormous data centers (Web farms) Copyright © 2016 Pearson Education, Inc 6-6 • Apple Data Center in Maiden, NC Billion-dollar facility contains more than 500,000 sq ft Copyright © 2016 Pearson Education, Inc 6-7 Why Is the Cloud Preferred to In-House Hosting? Copyright © 2016 Pearson Education, Inc 6-8 Why Is the Cloud Preferred to In-House Hosting? (cont'd) Copyright © 2016 Pearson Education, Inc 6-9 Why Now? • Time-sharing vendors sold slices of computer time on a use-fee basis since 1960s • Cloud-based hosting advantages – – – Cheap processors, essentially free data communication and data storage Instantaneous creation of new virtual machine environments Internet-based standards enable cloud-hosting vendors to provide flexible, standardized processing capabilities Copyright © 2016 Pearson Education, Inc 6-10 Using A Virtual Private Cloud Subset of a Public Cloud With Highly Restricted, Secure Access Copyright © 2016 Pearson Education, Inc 6-49 So What? Unexpected Geotagging • What Is Geotagging? – Your smartphone or your digital camera automatically adds metadata to every picture and video you take • Why Should I Worry About Geotagging? – How it might be harmful to you? Copyright © 2016 Pearson Education, Inc 6-50 How Does Geotagging Work? • • • iPhone with geotagging enabled Emailed, opened on PC using free IrfanView Image properties (EXIF data) contain laundry list of metadata including GPS latitude at N 40 45.41 (40.756833) and longitude at W 73 59.21 (73.986833).” Copyright © 2016 Pearson Education, Inc 6-51 Q7: 2025 • Cloud services faster, more secure, easier to use, cheaper • Fewer organizations set up own computing infrastructure • More pooling of servers across organizations • More economies of scale achieved by cloud vendors • Individuals, small businesses, large organizations readily obtain elastic resources at very low cost • Everything will be connected to everything else, with most data stored in the cloud Copyright © 2016 Pearson Education, Inc 6-52 Q7: 2025 (cont'd) • Large server farms employing few employees reduces number of small companies that install and maintain in-house email exchanges and other servers, and jobs • Cheap, elastic cloud services enable new small startups – Enable organizations to develop more information systems, cheaply, quickly, and increase demand for employees who know how to use and manage information systems Copyright © 2016 Pearson Education, Inc 6-53 Q7: 2025 (cont'd) • • • New categories of work Mobile systems will be standard More remote action systems – – – – – Telediagnosis Telesurgery Telelaw enforcement Drones and other military equipment Live remote digital broadcasting Copyright © 2016 Pearson Education, Inc 6-54 Security Guide: Storm Clouds • May, 2013, Adobe implemented a new subscription licensing model and replaced Adobe Creative Suite with Adobe Creative Cloud • Switched from perpetual licensing model to subscription model • Model introduces additional security risks: – Requires keeping users’ personal information, passwords, and credit card information Copyright © 2016 Pearson Education, Inc 6-55 Security Guide: Storm Clouds (cont'd) • Oct 2013: revealed credit card numbers and user login data for nearly million users were stolen – – Then, number to 38 million Week later, a massive file containing more than 150 million user accounts, apparently from Adobe, posted on AnonNews.org Copyright © 2016 Pearson Education, Inc 6-56 Cloud Security Alliance List of Nine Threats • Data breaches • Data loss • Account or service traffic hijacking • Insecure interfaces and APIs • Denial of service attacks Copyright © 2016 Pearson Education, Inc • Malicious insiders • Abuse of cloud services • Insufficient due diligence • Shared technology vulnerabilities 6-57 Guide: Is It Spying or Just Good Management • 92% of employers monitor employees’ email, telephone, and Internet use: – – – – • Key loggers Log files Packet sniffers Text mining First Amendment preserves free speech regarding laws Congress may enact, limited protection for federal employees, but does not protect you at work Copyright © 2016 Pearson Education, Inc 6-58 Active Review Q1: Why is the cloud the future for most organizations? Q2: What network technology supports the cloud? Q3: How does the cloud work? Q4: How organizations use the cloud? Q5: How can AllRoad Parts use the cloud? Q6: How can organizations use cloud services securely? Q7: 2025 Copyright © 2016 Pearson Education, Inc 6-59 Case Study 6: FinQloud Forever … Well, at Least for the Required Interval … • (1937) Securities and Exchange Commission (SEC) set out rules that required securities brokers' records be stored on media that cannot be altered • (2003) SEC interpreted rule to enable storage of records on read-write medium, provided it include software to prohibit data alteration Copyright © 2016 Pearson Education, Inc 6-60 Components of the FinQloud System Copyright © 2016 Pearson Education, Inc 6-61 FinQloud Forever … (cont'd) • Creates “finger print” of record based on its content If record is changed, fingerprint will indicate it was altered (original record would not be preserved) • Ability to overwrite or erase records stored on these systems makes them non-compliant with Rule 17a-4(f) • Excludes extrinsic controls authentication, passwords, and manual procedures • Meets requirements of SEC’s Rule17a-3) and similar rule set out by Commodities Futures Trading Commission, when properly configured Copyright © 2016 Pearson Education, Inc 6-62 Copyright © 2016 Pearson Education, Inc 6-63 ... speed and quality of data services at fraction of prior costs, cut in-house hardware support staff by 65% • Plowing money back into R&D Copyright © 2016 Pearson Education, Inc 6-12 Q2: What Network... =100,000,000 bits per second • Communications speeds expressed in bits, memory sizes expressed in bytes Copyright © 2016 Pearson Education, Inc 6-16 Connecting Your LAN to the Internet Important... Important ISP functions: 1.Provide legitimate Internet address 2.Gateway to Internet 3.Pay for Internet by collecting money from customers and paying access fees and other charges to telecoms •.WAN wireless