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Slide 2 Why Cloud Computing Will Never Be Free By Dave Durkee Slide 3 About the author Dave Durkee is the founder and technical directory of ENKI, a managed cloud computing service provider Slide 4 Share Resource Computing Slide 5 Cloud Computing Characteristic On-demand access Elasticity Pay-per-use Connectivity Resource Pooling Abstracted Infrastructure Little or no commitment Slide 6 Cloud Service Models Infrastructure as a service (IaaS) Compute, storage, or other IT infrastructure as a service, rather than as dedicate capability Platform as a service (Paas) Application platform or middleware as service on which developers can build and deploy custom applciations Software as a Service (Saas) End-user applications, delivered as service, rather than on-premises software Slide 7 Perfect competition Perfect competition describes markets such that no participants are large enough to have market power to set the price of a homogeneous product Slide 8 Venders in Perfect Competition Artificially differentiating Obscuring price Unclear specifications Product quality Long term contract Slide 9 Cloud Vender Over Commitments Specify memory allocation but leave CPU allocation unspecified Quote shared resource maximums instead of private allocations Offer a range of performance for a particular instance Over allocate resources on a physical server Slide 10 Corner Cutting Strategies Traffic Shaping Recycling failed disk drives Deploying older CPU technology Slide 11 Navigating in Cloud Market Service Level Agreements Performance Service and Support Slide 12 What Can Cloud 2.0 Do For You Enterprises Grade High Performance Reliable Highly Secure Highly Scalable Higher Cost Slide 13 Conclusion