Chapter+6 Mis

Using MIS
10th Edition
Chapter 6
The Cloud
Copyright © 2018 Pearson Education Ltd. 6-1

Management
Information Systems
First Semester 2020/2021

Study Questions
Q6-1 Why are organizations moving to the cloud?
Q6-2 How do organizations use the cloud?
Q6-3 What network technology supports the cloud?
Q6-4 How does the Internet work?
Q6-5 How do web servers support the cloud?
Q6-6 How can Falcon Security use the cloud?
Q6-7 How can organizations use cloud services
securely?
Q6-8 2027?

Benefits of the Cloud
• The Cloud
– Elastic leasing of pooled computer resources over
the Internet
– Elastic
 Automatically adjusts for unpredictable demand
 Limits financial risks
– Pooled
 Same physical hardware
 Economies of scale

Where did the Cloud come from?
• The Mainframe Era (1960s–1980s)

– Large-scale high-speed centralized computers.
– Thin clients, no Internet, and no Cloud.
• The Client-Server Era (1990s–2000s)
– Allowed clients (users) to send requests across the
Internet to servers.
– Internet, but no modern cloud computing yet.

The Mainframe Era (1960s–1980s)
Figure 6-1 The Mainframe Era (1960s–1980s)

The Client-Server Era (1990s–2000s)
Figure 6-2 The Client-Server Era (1990s–2000s)

Where did the Cloud come from? (cont’d)
• The Cloud Computing Era (2008–Current)

– Applications, data, and processing power can be
used remotely.
– Accessed with a variety of devices including PCs,
thin clients, mobile devices, and IoT devices.

The Cloud Computing Era (2008–Current)
Figure 6-3 The Cloud Computing Era (2008–Current)

Why Do Organizations Prefer the Cloud?
1. Lower costs – cheap processors, essentially free data

communication and storage.
2. Ubiquitous access (Found everywhere)
3. Improved scalability
4. Elasticity
5. Virtualization technology
6. Internet-based standards enable flexible, standardized
processing capabilities.

Growth of Amazon Web Services
Figure 6-4 AWS Revenue Growth

When Does the Cloud Not Make Sense?
• When law or standard industry practice require

physical control or possession of the data.
– Financial institutions legally required to maintain
physical control over its data.

Why Is the Cloud Preferred to In-House
Hosting?
Cloud In-house
Positive:
Small capital requirements Control of data location
In-depth visibility of security and disaster
Speedy development preparedness
Superior scalability to growing or fluctuating demand

Known cost structure
Possibly best-of-breed security/disaster
preparedness
No obsolescence
Industry-wide economies of scale, hence cheaper
Focus on core business, not infrastructure
Figure 6-5 Comparison of Cloud and In-House Alternatives

Why Is the Cloud Preferred to In-House
Hosting? (cont'd)
Cloud In-house
Negative:
Dependency on vendor Significant capital required
Loss of control over data location Significant development effort
Little visibility into true security and disaster Difficult (impossible?) to accommodate
preparedness capabilities fluctuating demand
Ongoing support costs
Staff and train personnel
Increased management requirements
Annual maintenance costs
Cost uncertainties
Obsolescence
Figure 6-5 Comparison of Cloud and In-House Alternatives

Using the Cloud
• Resource Elasticity
– A car manufacturer runs an ad during the Academy
Awards.
– Doesn’t know if there will be a thousand, a million,
10 million, or even more site visits.
– Cloud vendor will programmatically increase server
capacity.
– The car manufacturer reduces costs substantially.

Example of a Video Banner Ad Customer
Figure 6-6 Example Video Banner Ad Customer

Pooling Resources
• Economies of scale
– Average cost decreases as size of operation
increases.
– Major cloud vendors operate enormous data
centers (Web farms).

Apple Data Center in Maiden, NC
• Apple’s Billion-
dollar facility
contains more than
500,000 sq. ft.
Figure 6-7 Apple Data Center in Maiden, NC

Source: Google Earth

Transportation as a Service (metaphor)
Figure 6-8 Transportation as a Service

Types of Cloud Service Offerings
Cloud Service Users Examples
Salesforce.com
Employees
SaaS iCloud
Customers
Office 365
Application Google App Engine

PaaS developers Microsoft Azure
Application testers AWS Elastic Beanstalk
Network architects
Amazon EC2 (Elastic Compute Cloud)
IaaS Systems
Amazon S3 (Simple Storage Service)
administrators
Figure 6-9 Three Fundamental Cloud Types

Comparison of Cloud Service Offerings
Figure 6-10 Cloud Service Offerings

Types of Networks
Type Characteristic
Personal area network (PAN) Devices connected around a single person
Local area network (LAN) Computers connected at a single physical site

Computers connected between two or more
Wide area network (WAN)
separated sites
The Internet and internets Networks of networks
Figure 6-15 Basic Network Types

Cloudy Profit?
Ethics Guide
• Data broker (or data aggregator).

• Acquiring and analyzing market, buyer, and seller
data for real estate agents.
• Alliance transitioned data storage and processing
from own Web farm to the cloud.
• Improved 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.

Typical Small Office/Home Office (SOHO)
LAN
Figure 6-16 Typical Small Office/Home Office (SOHO) LAN

Abbreviations Used for Communications
and Computer Memory Speeds
• Communications equipment,
• K(ilo) = 1,000, not 1,024 (as for memory);
• M(ega) = 1,000,000, not 1,024 × 1,024;
• G(iga) = 1,000,000,000, not 1,024 × 1,024 ×
1,024.
 100 Mbps =100,000,000 bits per second.
• Communications speeds expressed in bits,
memory sizes in bytes.

Connecting Your LAN to the Internet
Important ISP functions:

1. Provide legitimate Internet address.
2. Provide gateway to Internet.
3. Pay access fees and other charges to
telecoms.
• WAN wireless average performance 1 Mbps, with
peaks of up to 3.0 Mbps.
• Typical wireless LAN 50 Mbps.

Postal System vs. the Internet
Steps to Send Package Postal System Internet Equivalent
1. Assemble package Package Packet
Person’s name (e.g., BigBank Inc. Domain name (e.g.,

2. Put name on package
or Jane Smith) www.BigBank.com)
3. Look up address Phone book DNS
Mailing address (e.g., 123 Park

4. Put address on package IP address (e.g., 10.84.8.154)
Ave, New York, NY, 10172)
5. Put registered mail sticker

Registered Mail TCP
on package
Airlines (e.g., Delta Air Lines, Inc.)

Carriers (e.g., Sprint Corp.)
6. Ship package Airports (e.g., Seattle-Tacoma
Routers
International Airport)
Figure 6-18 Comparison of the Postal System and the Internet

Public IP Addresses
• IPv4
– E.g. 137.190.8.10
– Dotted decimal notation
– Only about 4 billion addresses (not enough)
• IPv6
– E.g. 0:0:0:0:0:ffff:89be:80a
– Hexadecimal notation
– 340 undecillion addresses

Domain Name System (DNS)
• Domain name
 Unique name affiliated with a public IP address.
 Dynamic affiliation of domain names with IP
addresses.
 Multiple domain names for same IP address.
• URL (Uniform Resource Locator)
 Internet address protocol, such as http:// or ftp://.

Private vs. Public IP Addresses
• Public IP addresses
 Identifies a unique device on Internet.
 Assigned by ICANN (Internet Corporation for Assigned
Names and Numbers).
• Private IP addresses
 Identifies a device on a private network, usually a
LAN.
 Assignment LAN controlled.

IP Addressing: Major Benefits
• Public IP addresses conserved

– One public IP address per LAN.
• Using private IP addresses
– Eliminates registering public IP address with
ICANN-approved agencies.
– Protects against direct attack.

Domain Registry Company
Figure 6-19 GoDaddy Screenshot

Source: © 2015 GoDaddy Operating Company, LLC. All rights reserved.

The Cloud Resides in the Internet
Figure 6-20 Using the Internet to Request a Web Page

Processing on a Web Server
• What happens when

you visit a Web site
and order something,
and pay for it?
Figure 6-21 Sample of Commerce Server Pages; Product Offer Pages

Source: Courtesy of Zulily Inc. Used by permission.

Falcon Security in the Cloud
• SaaS products Falcon Security could use.

– Google Mail
– Google Drive
– Office 365
– Salesforce.com
– Microsoft CRM OnLine
– many others . . .

IaaS Services at Falcon Security
• Provides basic hardware in the cloud.

• May acquire servers to load operating systems.
• Considerable technical expertise and
management.
• Alternative: Use elastic data storage services.
• SaaS and PaaS provide more added value to
Falcon Security.

Organizations Using Cloud Services
Securely
Q6-7 How can organizations use cloud services securely?
Figure 6-28 Remote Access Using VPN; Actual Connections

Remote Access Using VPN: Apparent
Connection
Q6-7 How can organizations use cloud services securely?
Figure 6-29 Remote Access Using VPN; Apparent Connection

The Cloud in 2026
Q6-8 2027?
• Cloud services faster, more secure, easier to use,

cheaper.
• Fewer organizations own their computing
infrastructure.
• More pooling of servers across organizations.
• Overall size of the cloud gets bigger.
• Individuals, small businesses, large organizations
obtain elastic resources at very low cost.
• Cloud fosters new categories of work.
The Cloud in 2026 (cont’d)
Q6-8 2027?
• Remote action systems

– Telediagnosis
– Telesurgery
– Telelaw enforcement
– Provide services in dangerous locations.
– Watch top-notch performers and performances.
• New cloud services
– Analytics as a Service (AaaS)
– Business Process as a Service (BPaaS)

Active Review
Q6-7 How can organizations use cloud services
securely?
Q6-8 2027?

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Using MIS

Copyright © 2018 Pearson Education Ltd. 6-1

Copyright © 2018 Pearson Education Ltd. 6-2

Copyright © 2018 Pearson Education Ltd. 6-3

Copyright © 2018 Pearson Education Ltd. 6-4

• The Mainframe Era (1960s–1980s)

Copyright © 2018 Pearson Education Ltd. 6-5

Figure 6-1 The Mainframe Era (1960s–1980s)

Copyright © 2018 Pearson Education Ltd. 6-6

Figure 6-2 The Client-Server Era (1990s–2000s)

Copyright © 2018 Pearson Education Ltd. 6-7

• The Cloud Computing Era (2008–Current)

Copyright © 2018 Pearson Education Ltd. 6-8

Figure 6-3 The Cloud Computing Era (2008–Current)

Copyright © 2018 Pearson Education Ltd. 6-9

1. Lower costs – cheap processors, essentially free data

Copyright © 2018 Pearson Education Ltd. 6-10

Figure 6-4 AWS Revenue Growth

Copyright © 2018 Pearson Education Ltd. 6-11

• When law or standard industry practice require

Copyright © 2018 Pearson Education Ltd. 6-12

Superior scalability to growing or fluctuating demand

Figure 6-5 Comparison of Cloud and In-House Alternatives

Copyright © 2018 Pearson Education Ltd. 6-13

Figure 6-5 Comparison of Cloud and In-House Alternatives

Copyright © 2018 Pearson Education Ltd. 6-14

Copyright © 2018 Pearson Education Ltd. 6-15

Figure 6-6 Example Video Banner Ad Customer

Copyright © 2018 Pearson Education Ltd. 6-16

Copyright © 2018 Pearson Education Ltd. 6-17

Figure 6-7 Apple Data Center in Maiden, NC

Copyright © 2018 Pearson Education Ltd. 6-18

Figure 6-8 Transportation as a Service

Copyright © 2018 Pearson Education Ltd. 6-19

Cloud Service Users Examples

Application Google App Engine

Figure 6-9 Three Fundamental Cloud Types

Copyright © 2018 Pearson Education Ltd. 6-20

Figure 6-10 Cloud Service Offerings

Copyright © 2018 Pearson Education Ltd. 6-21

Personal area network (PAN) Devices connected around a single person

Local area network (LAN) Computers connected at a single physical site

Figure 6-15 Basic Network Types

Copyright © 2018 Pearson Education Ltd. 6-22

• Data broker (or data aggregator).

Copyright © 2018 Pearson Education Ltd. 6-23

Figure 6-16 Typical Small Office/Home Office (SOHO) LAN

Copyright © 2018 Pearson Education Ltd. 6-24

Copyright © 2018 Pearson Education Ltd. 6-25

Important ISP functions:

Copyright © 2018 Pearson Education Ltd. 6-26

Steps to Send Package Postal System Internet Equivalent

1. Assemble package Package Packet

Person’s name (e.g., BigBank Inc. Domain name (e.g.,

3. Look up address Phone book DNS

Mailing address (e.g., 123 Park

5. Put registered mail sticker

Airlines (e.g., Delta Air Lines, Inc.)

Figure 6-18 Comparison of the Postal System and the Internet

Copyright © 2018 Pearson Education Ltd. 6-27

Copyright © 2018 Pearson Education Ltd. 6-28

Copyright © 2018 Pearson Education Ltd. 6-29

Copyright © 2018 Pearson Education Ltd. 6-30