Cloud Foundation

The essentials you should know about cloud

Alessandro Rossini
September 2021

Photo: Alessandro Rossini

Agenda

1. What’s the Cloud?

2. Market
3. Service and Delivery Models
4. Advantages
5. Adoption and Governance
6. Security
7. Myths and Pitfalls

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1
What’s the Cloud?
Every time you use services online, your device communicates through the Internet
with servers

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A server is a computer designed to operate 24/7

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Photos: HPE
 Server racks

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Photo: HPE
 Jokes aside…
The cloud consists of a global network of data centers operating 24/7,
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each hosting thousands of servers delivering thousands of services
 Data center

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Photo: Google
 Inside a data center: Server racks

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Photo: Google
 Inside a data center: Power transformers

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Photo: Google
 Inside a data center: Cooling pipes

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Photo: Google
A key technology enabling the cloud is virtualization, which allows different
consumers to use different virtual machines on top of the same physical machine

Applications Applications
Applications
Operating System Operating System

Virtual Machine Virtual Machine

Operating System

Virtualization

Physical Machine Physical Machine

Traditional Virtualized
PwC hardware-software stack hardware-software stack
Like airline operators, public cloud providers exploit their hardware through
overbooking

Applications Applications Applications

Operating System Operating System Operating System

Virtual Machine Virtual Machine Virtual Machine

Virtualization

Physical Machine

Virtualized
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Cloud computing is a model for ubiquitous,
convenient, on-demand network access to a
shared pool of configurable computing resources
(e.g., networks, servers, storage, applications,
and services) that can be rapidly provisioned and
released with minimal management effort or
service provider interaction.

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Source: National Institute of Standards and Technology (NIST)—The NIST Definition of Cloud Computing
 on-demand
computing resources

rapidly provisioned
with minimal management effort

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Source: National Institute of Standards and Technology (NIST)—The NIST Definition of Cloud Computing
2
Cloud Market
The cloud market is dominated by
three leading cloud providers

The flag indicates the location of the data centers

in the Nordics

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It is increasingly difficult for organizations to avoid the cloud

Today, a corporate ‘no-cloud’ policy is as rare

as a ‘no-Internet’ policy was ten years ago

Providers use various Organizations that have Competence in the market

means to push migrated expect is shifting from data center-
consumers to the cloud collaboration in the cloud to cloud architects

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3
Cloud Service and
Delivery Models
Let’s first talk about
pizza!

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 Operated by consumer

Pizza service models Operated by provider

Dining table Dining table Dining table Dining table

Beer Beer Beer Beer

Fire Fire Fire Fire

Oven Oven Oven Oven

Toppings Toppings Toppings Toppings

Cheese Cheese Cheese Cheese

Sauce Sauce Sauce Sauce

Dough Dough Dough Dough

Made at home Baked at home Delivered at home Dined at a restaurant

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 Operated by consumer

Cloud service models Operated by provider

Applications Applications Applications Applications

Data Data Data Data

Run-Time Run-Time Run-Time Run-Time

Environment Environment Environment Environment

Operating System Operating System Operating System Operating System

Virtualization Virtualization Virtualization Virtualization

Servers Servers Servers Servers

Storage Storage Storage Storage

Network Network Network Network

On-Premises Infrastructure- Platform- Software-

as-a-Service as-a-Service as-a-Service
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Beware who is the consumer and who is the provider

Applications

Data

Run-Time
Environment

Operating System

Virtualization

Servers

Storage

Network

Infrastructure-
as-a-Service
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Beware who is the consumer and who is the provider

Applications

Data

Run-Time
Environment

Operating System

PwC’s employees consume iPower

Virtualization
from GTS

Servers

Storage

Network

Infrastructure- PwC’s GTS consumes IaaS

as-a-Service from Microsoft Azure
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Cloud delivery models
Private
• Privately shared virtualized
computing resources
• Owned and operated by the
consumer (or third party)
• Suitable for consumers under strict
security policies and regulations, or
using custom hardware and software
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Hybrid
• Combination of private and public
clouds
• Suitable for consumers during
transition to public cloud
Public
• Publicly shared virtualized
computing resources
• Owned and operated by the
provider
• Recommended to the vast majority
of consumers
 Operated by consumer

Operated by provider
Private

Applications Applications Applications Applications

Data Data Data Data

Run-Time Run-Time Run-Time Run-Time

Environment Environment Environment Environment

Operating System Operating System Operating System Operating System

+ + +
Virtualization Virtualization Virtualization Virtualization

Servers Servers Servers Servers

Storage Storage Storage Storage

Network Network Network Network

On-Premises On-Premises On-Premises On-Premises

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 Operated by consumer

Operated by provider
Hybrid

Applications Applications Applications Applications

Data Data Data Data

Run-Time Run-Time Run-Time Run-Time

Environment Environment Environment Environment

Operating System Operating System Operating System Operating System

+ + +
Virtualization Virtualization Virtualization Virtualization

Servers Servers Servers Servers

Storage Storage Storage Storage

Network Network Network Network

On-Premises On-Premies Platform- Software-

as-a-Service as-a-Service
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 Operated by consumer

Operated by provider
Public

Applications Applications Applications Applications

Data Data Data Data

Run-Time Run-Time Run-Time Run-Time

Environment Environment Environment Environment

Operating System Operating System Operating System Operating System

+ + +
Virtualization Virtualization Virtualization Virtualization

Servers Servers Servers Servers

Storage Storage Storage Storage

Network Network Network Network

Infrastructure- Infrastructure- Platform- Software-

as-a-Service as-a-Service as-a-Service as-a-Service
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Single-Cloud vs Multi-Cloud

Single-Cloud Multi-Cloud

+ Reduced need for upskilling (one cloud platform only) + Reduced lock-in
+ Reduced overhead for dev and ops teams + Best of breed services
+ Simplified cost estimates
– Increased need for upskilling
– Increased lock-in – Increased overhead for dev and ops teams
– Not always best of breed services – Complex cost estimates

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4
Cloud Advantages
The cloud is the new normal with fewer organizations asking “why” and more
asking “how and how fast?”

Electricity
Shift to on-demand power
revolution*

Cloud Shift to on-demand

compute
revolution

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*Also known as second industrial revolution Source: AWS
Like electricity providers, public cloud providers typically charge for services based
on a pay-as-you-go model

Electricity Cloud
consumption consumption

e.g.
e.g.
unit cost ×
spot price ×
gigabytes storage ×
consumed watts
number of seconds

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Time Time
Everything-as-a-service can provide several advantages

Agility Global Scale Performance

Reliability Security Innovation

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Variable operational expenses and automation typically lead to increased agility and
scalability

Variable
operational expenses
Capacity
You just
lost customers

Large
capital expenses

Predicted demand
Actual demand
On-premises capacity
Automated cloud capacity

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Time
Cloud can also bring challenges, especially in a migration phase

Development and Combination of Mix of

operations from multiple platforms CapEx and OpEx
multiple vendors

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5
Cloud Adoption and
Governance
Organizations should go through various cloud adoption phases in order to succeed
with a cloud migration

Strategy PoC Migration

Target state Legacy Identity and access
Roadmap Monoliths Data
Hybrid vs public cloud Modernized Shared services
Single vs multi cloud Microservices Applications

Upskilling Comparison Optimization

Service models On-Premises Monitoring
Delivery models AWS Scaling
Governance Azure Disaster recovery
Security GCP Cost control

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Migrating to the cloud before modernizing (lift-and-shift) seldom allows to exploit
cloud advantages and should be assessed carefully

First modernize Cloud native-

then migrate application

s y...
a
oe
ots
N

Existing application First migrate (lift-and-shift)

on-premise then modernize

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Organizations should select the right modernization tactic to exploit cloud
advantages

Effort Rebuild

Rearchitect

Refactor Replace

Rehost

Advantage
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Source: Gartner
Organizations should also adopt continuous improvement to increase efficiency and
reduce technical debt

Plan

Monitor and Optimize

Develop and Test

Continuous
Improvement

Release and Deploy

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Finally, organizations should adopt a governance model tailored to the cloud
Contract and relationship management with Best practices to protect services,
cloud brokers and cloud providers applications and data in the cloud

Supplier Cloud
Management Security

Identification of regulatory constraints and Review, update and approval for architecture
implementation of compliance Cloud at enterprise and solution levels
Compliance Architecture
Cloud
Governance

Capacity Tools,
and Cost Frameworks and
Management Standards
Capacity planning, consumption Life-Cycle Guidelines for selection and use of
monitoring, cost allocation and optimization Management tools, frameworks and standards in the cloud

PwC Introduction, maintenance and retirement of

services, applications and data in the cloud
6
Cloud Security
Security in the cloud is a shared responsibility between
the consumer and the provider

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From perimeter architecture…

Perimeter
?
How to combine
the perimeter
with services
in the cloud?

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Source: NAV
…to zero trust architecture
Identity and
access manager

Secure
Zero Trust communication

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Zero trust architecture:
“Don’t trust anyone, internally or externally”

Adopt multi-factor authentication

Authenticate, authorize, and verify all users, services,

and devices

Inspect and log all traffic

Restrict access and permissions only to the data and

resources required (i.e., principle of least privilege)
Encrypt all data at rest and in transit, with encryption
keys stored separately from data

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7
Cloud Myths and
Pitfalls
Top 10 cloud myths according to Gartner

• Cloud is always about money

• You have to be cloud to be good
• Cloud should be used for everything
• “The CEO said so” is a cloud strategy
• We need a one-cloud solution
• Cloud is less or more secure than on-premises
• Multi-cloud will prevent lock-in
• Once I move to cloud, I’m done
• Enterprises are moving back from public cloud
• We have a cloud (implementation/migration/adoption) strategy

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Reduction of scope and lack of governance at any cloud adoption phase will
introduce significant technical challenges and spending waste

Strategy PoC Migration

Target state Legacy Identity and access
Roadmap Monoliths Data
Hybrid vs public cloud Modernized Shared services
Single vs multi cloud Microservices Applications

Upskilling Comparison Optimization

Service models On-Premises Monitoring
Delivery models AWS Scaling
Governance Azure Disaster recovery
Security GCP Cost control

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What have we learned today?

1. What’s the Cloud?

2. Market
3. Service and Delivery Models
4. Advantages
5. Adoption and Governance
6. Security
7. Myths and Pitfalls

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 alessandro.rossini@pwc.com

Thank you https://www.linkedin.com/in/alessandrorossini/

https://www.twitter.com/alerossini

https://www.pwc.no/

pwc.com

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