1. Using MIS
10th Edition
Chapter 6
The Cloud

2. “How About $10 Per Terabyte?”
Lease storage capacity from third party.
All incoming data from drones automatically uploaded.
Average monthly storage costs cut at least 50%.
Power savings, backup time saved, no new hardware configuration.
One-time set up and development costs.
Use scenario to:
Illustrate importance (and promise) of the cloud.
See firsthand the benefits of the cloud to business.
Set up a skeptical view of cloud benefits and use that skepticism to motivate the learning of this chapter’s contents.

3. 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? Q ?
Business people need the knowledge in this chapter to answer questions like these. In the 21st century, many of your competitors will be able to answer these questions without hiring outside consultants.

4. Benefits of the Cloud The Cloud
Q6-1 Why are organizations moving to 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
Organizations are moving their computing infrastructure to the cloud. Leasing computing infrastructure from the cloud will become common practice.

5. Where did the Cloud come from?
Q6-1 Why are organizations moving to the cloud?
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.

6. The Mainframe Era (1960s–1980s)
Q6-1 Why are organizations moving to the cloud?
Note the location of applications, data storage, and processing on the mainframe.
Figure 6-1 The Mainframe Era (1960s–1980s)

7. The Client-Server Era (1990s–2000s)
Q6-1 Why are organizations moving to the cloud?
Note the location of applications, data storage, and processing on both the stand-alone client and the server. Point out that the processing load can be shared.
Figure 6-2 The Client-Server Era (1990s–2000s)

8. Where did the Cloud come from? (cont’d)
Q6-1 Why are organizations moving to the cloud?
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.

9. The Cloud Computing Era (2008–Current)
Q6-1 Why are organizations moving to the cloud?
Figure 6-3 shows a simplified Cloud computing architecture. This includes IoT devices, mobile clients, thin clients, stand-alone clients, the Internet, and Cloud service providers.
Figure 6-3 The Cloud Computing Era (2008–Current)

10. Why Do Organizations Prefer the Cloud?
Q6-1 Why are organizations moving to the cloud?
Lower costs – cheap processors, essentially free data communication and storage.
Ubiquitous access
Improved scalability
Elasticity
Virtualization technology
Internet-based standards enable flexible, standardized processing capabilities.

11. Growth of Amazon Web Services
Q6-1 Why are organizations moving to the cloud?
Amazon boasts 31 percent market share of the cloud computing market with more than a million active customers! These customers include large companies like Adobe Systems ($48B market cap), Netflix Inc. ($37B market cap), and Pfizer Inc. ($205B market cap). One million of this type of customer is a lot.
Figure 6-4 AWS Revenue Growth

12. When Does the Cloud Not Make Sense?
Q6-1 Why are organizations moving to the cloud?
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.

13. Why Is the Cloud Preferred to In-House Hosting?
Q6-1 Why are organizations moving to the cloud?
Cloud
In-house
Positive:
Small capital requirements
Control of data location
Speedy development
In-depth visibility of security and disaster 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
Comparison of cloud and in-house alternatives.
Figure 6-5 Comparison of Cloud and In-House Alternatives

14. Why Is the Cloud Preferred to In-House Hosting? (cont'd)
Q6-1 Why are organizations moving to the cloud?
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 preparedness capabilities
Difficult (impossible?) to accommodate fluctuating demand
Ongoing support costs
Staff and train personnel
Increased management requirements
Annual maintenance costs
Cost uncertainties
Obsolescence
Continuation of Figure 6-5.
Figure 6-5 Comparison of Cloud and In-House Alternatives

15. Using the Cloud Resource Elasticity
Q6-2 How do organizations use 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.

16. Example of a Video Banner Ad Customer
Q6-2 How do organizations use the cloud?
Figure based on real case supported by Amazon.com’s CloudFront
Without increase in servers, response time 3 or 5 seconds or more, far too long to maintain attention of viewer.
Figure 6-6 Example Video Banner Ad Customer

17. Pooling Resources Economies of scale
Q6-2 How do organizations use the cloud?
Economies of scale
Average cost decreases as size of operation increases.
Major cloud vendors operate enormous data centers (Web farms).

18. Apple Data Center in Maiden, NC
Q6-2 How do organizations use the cloud?
Billion-dollar facility contains more than 500,000 sq. ft.
Constructed in 2011 to support its iCloud.
Amazon.com, IBM, Google, Microsoft, Oracle, and other large companies operate several similar farms worldwide.
Figure 6-7 Apple Data Center in Maiden, NC
Source: Google Earth

19. Transportation as a Service (metaphor)
Q6-2 How do organizations use the cloud?
Figure 6-8 Transportation as a Service

20. Types of Cloud Service Offerings
Q6-2 How do organizations use the cloud?
Cloud Service
Users
Examples
SaaS
Employees Customers
Salesforce.com iCloud Office 365
PaaS
Application developers Application testers
Google App Engine Microsoft Azure AWS Elastic Beanstalk
IaaS
Network architects Systems administrators
Amazon EC2 (Elastic Compute Cloud) Amazon S3 (Simple Storage Service)
Organizations can use the cloud in several different ways. By far most popular, is to obtain cloud services from cloud service vendors.
Figure 6-9 Three Fundamental Cloud Types

21. Comparison of Cloud Service Offerings
Q6-2 How do organizations use the cloud?
Figure 6-10 shows a comparison of Cloud service offerings to traditional on-premises including Infrastructure as a Service, Platform as a Service, and Software as a Service.
Figure 6-10 Cloud Service Offerings

22. Content Delivery Networks from Cloud Vendors
Q6-2 How do organizations use the cloud?
Content delivery network (CDN)
Stores user data in many different geographical locations and makes data available on demand.
Specialized type of PaaS, but usually considered in its own category.
Minimizes latency.
Used to store and deliver content seldom changed.

23. Traditional Server Content Distribution
Q6-2 How do organizations use the cloud?
Figure 6-11 shows traditional server content distribution.
Figure 6-11 Traditional Server Content Distribution

24. Distributed CDN Servers
Q6-2 How do organizations use the cloud?
Figure 6-12 shows distributed CDN servers distributing content. Note how much less content has to come directly from the source company. Local proximity of the CDN servers increases speed.
Figure 6-12 Distributed CDN Servers

25. CDN Benefits Q6-2 How do organizations use the cloud?
Figure 6-13 shows the benefits of content delivery networks.
Figure 6-13 Benefits of Content Delivery Networks

26. Using Web Services Internally
Q6-2 How do organizations use the cloud?
This figure shows a Web services inventory application at a hypothetical online bicycle part retailer named Best Bikes.
In this example, Best Bikes is running its own servers on its own infrastructure. To do so, Best Bikes sets up a private internet within the company, an internet that is generally not reachable from outside the company.
Best Bikes writes the applications for processing inventory using Web services standards; applications publish a WSDL; the Web services are accessed by other applications within the company using SOAP; and data are delivered using JSON.
Application users access the inventory Web services using JavaScript that is sent down to the users' browsers.
Figure 6-14 Web Services Principles Applied to Inventory Applications

27. Types of Networks Type Characteristic Personal area network (PAN)
Q6-3 What network technology supports the cloud?
Type
Characteristic
Personal area network (PAN)
Devices connected around a single person
Local area network (LAN)
Computers connected at a single physical site
Wide area network (WAN)
Computers connected between two or more separated sites
The Internet and internets
Networks of networks
Basic types of computer networks.
Figure 6-15 Basic Network Types

28. Cloudy Profit? Data broker (or data aggregator).
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.
Goals
Alert students to:
Incredible profits can result from using the cloud.
Extreme profits for successful businesses.
Ethical issues of success and ethical considerations of wealth.
What goes up can come down; level of profitability is probably not sustainable.
Discuss why cloud is a game changer (cheap communications, cheap servers, virtualization, sharing of hardware, Web standards).

29. Typical Small Office/Home Office (SOHO) LAN
Q6-3 What network technology supports the cloud?
Most personal computers today support 10/100/1000 Ethernet.
Figure 6-16 Typical Small Office/Home Office (SOHO) LAN

30. Abbreviations Used for Communications and Computer Memory Speeds
Q6-3 What network technology supports the cloud?
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.

31. LAN Protocol IEEE 802.3 IEEE 802.11 Bluetooth
Q6-3 What network technology supports the cloud?
IEEE 802.3
Wired LAN
10/100/1000 Mbps
Ethernet
IEEE
Wireless LAN
802.11ac
Speeds up to 1.3 Gbps
Bluetooth
Transmits data short distances.
Connect computer, keyboard, mouse, printer, smartphones, smartwatches, automobiles, sports equipment, clothing.

32. Connecting Your LAN to the Internet
Q6-3 What network technology supports the cloud?
Important ISP functions:
Provide legitimate Internet address.
Provide gateway to Internet.
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.
Gateway function – ISP receives the communications from your computer and passes them on to the Internet, and receives communications from the Internet and passes them to you.
4G LTE speeds 5-12 mbps download, 2-5 mbps upload. (

33. Summary of LAN Networks
Q6-3 What network technology supports the cloud?
Type
Topology
Transmission Line
Transmission Speed
Equipment Used
Protocol Commonly Used
Remarks
Local area network
UTP or optical fiber
Common: 10/100/1000 Mbps Possible: 1 Gbps
Switch NIC UTP or optical
IEEE (Ethernet)
Switches connect devices, multiple switches on all but small LANs.
Local area network with wireless
UTP or optical for nonwireless connections
Up to 600 Mbps
Wireless access point Wireless NIC
IEEE n, (802.11ac not yet common)
Access point transforms wired LAN (802.3) to wireless LAN (802.11).
Connections to the Internet
DSL modem to ISP
DSL telephone
Personal: Upstream to 1 Mbps, downstream to 40 Mbps (max 10 likely in most areas)
DSL modem DSL-capable telephone line
DSL
Can have computer and phone use simultaneously. Always connected.
Cable modem to ISP
Cable TV lines to optical cable
Upstream to 1 Mbps Downstream 300 Kbps to 10 Mbps
Cable modem Cable TV cable
Cable
Capacity is shared with other sites; performance varies depending on others’ use.
WAN wireless
Wireless connection to WAN
500 Kbps to 1.7 Mbps
Wireless WAN modem
One of several wireless standards
Sophisticated protocols enables several devices to use the same wireless frequency.
Figure 6-17 Summary of LAN Networks

34. Postal System vs. the Internet
Q6-4 How does the Internet work?
Steps to Send Package
Postal System
Internet Equivalent
1. Assemble package
Package
Packet
2. Put name on package
Person’s name (e.g., BigBank Inc. or Jane Smith)
Domain name (e.g.,
3. Look up address
Phone book
DNS
4. Put address on package
Mailing address (e.g., 123 Park Ave, New York, NY, 10172)
IP address (e.g., )
5. Put registered mail sticker on package
Registered Mail
TCP
6. Ship package
Airlines (e.g., Delta Air Lines, Inc.) Airports (e.g., Seattle-Tacoma International Airport)
Carriers (e.g., Sprint Corp.) Routers
Figure 6-18 Comparison of the Postal System and the Internet

35. Public IP Addresses IPv4 IPv6 E.g. 137.190.8.10
Q6-4 How does the Internet work?
IPv4
E.g
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
Most common IP addresses format is IPv4.

36. Domain Name System (DNS)
Q6-4 How does the Internet work?
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 or ftp://.
ICANN administers system for assigning names to IP addresses. Domain name a worldwide-unique name affiliated with a public IP address. Affiliation of domain names with IP addresses is dynamic. Owner of domain name can change affiliated IP addresses at its discretion.
URL consists of a protocol (like or ftp://) followed by a domain name or public IP address.
What advantage does point one provide?

37. Private vs. Public IP Addresses
Q6-4 How does the Internet work?
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.
What is purpose of the transport and internet layers?
These protocols manage traffic as it passes across an internet /Internet. Most important protocol in transport layer is TCP.

38. IP Addressing: Major Benefits
Q6-4 How does the Internet work?
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.
Private/public IP address scheme two major benefits.
Attackers cannot send attack packets to private IP addresses.

39. Domain Registry Company
Q6-4 How does the Internet work?
GoDaddy, or a similar agency, will first determine if desired name is unique worldwide. If so, it will apply to register that name.
Figure 6-19 GoDaddy Screenshot
Source: © 2015 GoDaddy Operating Company, LLC. All rights reserved.

40. Packets & Carriers Messages, broken into packets.
Q6-4 How does the Internet work?
Messages, broken into packets.
TCP guarantees delivery of packets.
Packets move across Internet, passing through networks owned by telecom carriers.
Peering agreements - Carriers freely exchange traffic amongst themselves without paying access fees.
Should carriers be allowed to decide which sites load quickly, which apps are allowed on a network, which content is acceptable, and charge varying access rates?

41. Net Neutrality Net neutrality principle All data treated equally.
Q6-4 How does the Internet work?
Net neutrality principle
All data treated equally.
Carriers should not be allowed to:
Decide which sites load quickly
Decide which apps are allowed on a network
Decide which content is acceptable
Problem: some people use more bandwidth than others.
Netflix, for example, accounts for more than 30 percent of all Internet traffic in North America between 9 PM and 12 AM
Should carriers be allowed to decide which sites load quickly, which apps are allowed on a network, which content is acceptable, and charge varying access rates?

42. The Cloud Resides in the Internet
Q6-4 How does the Internet work?
Using Internet for Hotel Reservation
Assume you send a message to a server in New Zealand hotel. Message is too big to travel in one piece, so it’s broken into packets and each packet passes along from WAN to WAN until it reaches destination. Once all packets arrive, message reconstructed, delivered to server for processing. All accomplished by computers and data communications devices that most likely have not interacted before.
Hop is movement from one network to another.
Figure 6-20 Using the Internet to Request a Web Page

43. Processing on a Web Server
Q6-5 How do web servers support the cloud?
What happens when you visit a Web site and order something, and pay for it?
Sample of Commerce Server Pages; Product Offer Pages.
Figure 6-21 Sample of Commerce Server Pages; Product Offer Pages
Source: Courtesy of Zulily Inc. Used by permission.

44. Three-Tier Architecture
Q6-5 How do web servers support the cloud?
Almost all e-commerce applications use a three-tier architecture.
User tier consists of computers, phones, other devices with browsers that request and process Web pages.
Server tier consists of computers running Web servers and application programs.
Database tier consists of computers running a DBMS that processes SQL requests to retrieve and store data.
Commerce server — application program that runs on server-tier computer. Receives requests from users via Web server, takes some action, and returns a response to users. Typical commerce server functions are to obtain product data from a database, manage items in a shopping cart, and coordinate checkout process.
Figure 6-22 Three-Tier Architecture

45. Watch the Three Tiers in Action! Sample of Commerce Server Page
Q6-5 How do web servers support the cloud?
Commerce server requests shoe data from DBMS.
DBMS reads from database, returns data to commerce server.
Commerce server formats Web page with data and sends html version of page to user’s computer.
Customer places items in shopping cart.
Customer checks out, commerce server program processes payment, schedules inventory processing, arranges shipping, receipt to customer.
Figure 6-23 Product Page
Source: Courtesy of Zulily Inc. Used by permission

46. SOA Analogy: Approval Request Interactions Among Three Departments
Q6-5 How do web servers support the cloud?
CheckCustomerCredit
• ApproveCustomerCredit
• VerifyInventoryAmount
• AllocateInventory
• ReleaseAllocatedInventory
Figure 6-24 Approval Request Interactions Among Three Departments

47. Using SOA Principles, Each Department Defines:
Q6-5 How do web servers support the cloud?
CheckCustomerCredit
ApproveCustomerCredit
Inventory Department
VerifyInventoryAmount
AllocateInventory
ReleaseAllocatedInventory
Each department formally states data to receive with request and data promised to return in response.
Every interaction done exactly same way.
Using SOA principles, each department formally what it provides.

48. Using SOA Principles: Encapsulation
Q6-5 How do web servers support the cloud?
No department needs to know who works in another department, or how dept. accomplishes work.
Each department free to change personnel task assignments, change processes for performing services.
Falcon Security could dynamically create 1,000 Inventory Departments and Sales Department with no need to change anything it does.

49. SOA Principles Applied to Three-Tier Architecture
Q6-5 How do web servers support the cloud?
Services
ObtainPartData
ObtainPartImages
ObtainPartQuantity OnHand
OrderPart
JavaScript written to invoke these services correctly.
Commerce server application formally defines services browsers can request, data they must provide with the request, and data each will receive in response to request.
Organization must agree on standard ways of formatting and processing service requests and data.
Figure 6-25 SOA Principles Applied to Three-Tier Architecture

50. Protocols Supporting Web Services
Q6-5 How do web servers support the cloud?
Only Internet protocols a business professional likely to encounter are at application layer.
Figure 6-26 Protocols That Support Web Services

51. WSDL, SOAP, XML, and JSON WSDL (Web Services Description Language)
Q6-5 How do web servers support the cloud?
WSDL (Web Services
Description Language)
Standard for describing services, inputs, outputs, other data supported by a Web service. Documents coded machine readable and used by developer tools for creating programs to access the service.
SOAP
(no longer an acronym)
Protocol for requesting Web services and for sending responses to Web service requests.
XML
(eXtensible Markup Language)
Used for transmitting documents. Contains metadata to validate format and completeness of a document, includes considerable overhead.
JSON
(JavaScript Object Notation)
Markup language used for transmitting documents. Contains little metadata. Preferred for transmitting volumes of data between servers and browsers. While notation in format of JavaScript objects, JSON documents can be processed by any language.
These are four standards that are used extensively for Web services and the cloud.

52. Example XML and JSON Documents
Q6-5 How do web servers support the cloud?
XML and JSON are ways of marking up documents so that both the service requestor and the service provider know what data they’re processing. This slide shows a simple example of both. XML documents contain as much metadata as they do application data. These metadata are used to ensure the document is complete and properly formatted.
XML is used when relatively few messages are being transmitted and when ensuring a complete and correct document is crucial. Both WSDLs and SOAP messages are coded in XML.
JSON uses the notation for JavaScript objects to format data. It has much less metadata and is preferred for the transmission of voluminous application data. Web servers use JSON as their primary way of sending application data to browsers.
Figure 6-27a Example XML Document
Figure 6-27b Example JSON Document

53. Falcon Security in the Cloud
Q6-6 How can Falcon Security use the cloud?
SaaS products Falcon Security could use.
Google Mail
Google Drive
Office 365
Salesforce.com
Microsoft CRM OnLine
many others . . .
Falcon Security is a small company with a very small IT Department, and unlikely to have resources necessary to develop its own server infrastructure.

54. PaaS Services from Amazon DBMS Products with Elastic Cloud 2 (EC2)
Q6-6 How can Falcon Security use the cloud?
Falcon Security could use CDN to distribute content worldwide and respond to leads generated from advertising.
Amazon Relational Database Service (RDS)
A relational database service supporting MySQL, Oracle, SQL Server, or PostgreSQL
Amazon DynamoDB
A fast and scalable NoSQL database service
Amazon ElastiCache
A very fast in-memory cache database service
Amazon Redshift
A petabyte-scale data warehouse
Falcon Security lease hardware and operating systems from cloud vendor.

55. IaaS Services at Falcon Security
Q6-6 How can Falcon Security use the cloud?
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.

56. Organizations Using Cloud Services Securely
Q6-7 How can organizations use cloud services securely?
Internet is a jungle of threats to data and computing infrastructure, as discussed in Chapter 10.
How can organizations realize the benefits of cloud technology without succumbing to those threats?
VPN technology uses public Internet to create appearance of a private connection on secure network.
Virtual means something that appears to exist but, in fact, does not.
Figure 6-28 Remote Access Using VPN; Actual Connections

57. Remote Access Using VPN: Apparent Connection
Q6-7 How can organizations use cloud services securely?
This figure illustrates the connection as it appears to the remote user.
VPN client software encrypts messages so their contents are protected from snooping.
Then the VPN client appends the Internet address of the VPN server to the message and sends that package over the Internet to the VPN server.
When the VPN server receives the message, it strips its address off the front of the message, decrypts the coded message, and sends the plain text message to the original address inside the LAN.
Figure 6-29 Remote Access Using VPN; Apparent Connection

58. Private Cloud for Inventory and Other Applications
Q6-7 How can organizations use cloud services securely?
To create a private cloud, the organization creates a private internet and designs applications using Web services standards.
In a server farm, the servers are managed by elastic load balancer devices.
Most organizations do not replicate database servers.
Figure 6-30 Private Cloud for Inventory and Other Applications

59. Accessing Private Cloud over a Virtual Private Network
Q6-7 How can organizations use cloud services securely?
Private clouds provide security within the organizational infrastructure but do not provide secure access from outside that infrastructure.
To provide such access, organizations set up a VPN and users employ it to securely access the private cloud.
Private clouds provide the advantages of elasticity, but to questionable benefit. What can organizations do with their idle servers?
Figure 6-31 Accessing Private Cloud over a Virtual Private Network

60. Using A Virtual Private Cloud
Q6-7 How can organizations use cloud services securely?
Subset of a Public Cloud With Highly Restricted, Secure Access
Organization can store most sensitive data on own infrastructure, and store less sensitive data on VPC. Thus, organizations required to have physical control over some of their data can place it on own servers and locate rest on VPC.
Figure 6-32 Using a Virtual Private Cloud (VPC)

61. The Cloud in 2027
Q ?
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.
Absent some unknown factor such as a federal tax on Internet traffic.
Individuals on iCloud or Google Grid, to small groups using Office 365, to small companies like Falcon Security Parts using PaaS, to huge organizations using IaaS.

62. The Cloud in 2027 (cont’d) Remote action systems New cloud services
Q ?
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)

63. Quantum Learning
So What?
Machine learning is the ability of computers to learn dynamically rather than being explicitly coded.
Based on the iterative generation of models.
Adapts models and interprets them differently over time.
Allows the computer to identify patterns and other insights independently.
Quantum computing could advance machine learning due to increased processing power.

64. From Anthem to Anathema
Security Guide
Greater accessibility  data more accessible to hackers. 80 million customers affected.
Stole names, addresses, Social Security numbers, and salaries.
Stored in plain text.
Lawsuits filed.
Premera Blue Cross
Bank-account and medical data of 11 million customers.
Goals
Alert students to:
An example of a large-scale data breach of a cloud-based service provider.
Security issues related to cloud-based services.
The trade-offs associated with implementing cloud-based services.
Security practices could evolve from being a necessary evil to becoming a competitive advantage.

65. Senior Network Manager
Career Guide
Rebecca Cengiz-Robbs at Carbonite
Q. What attracted you to this field?
A. “I was attracted to IT by the wide variety of disciplines and the abundant opportunities, especially for women. After working as a network administrator and being able to get exposure to storage, backups, computing, security, and networking, I realized I liked networking the best.”
Q. What advice would you give to someone who is considering working in your field?
A. “In addition to technical skills and a good work ethic, I’d develop emotional intelligence and build a personal network. Often in IT, it’s who you know and how you get along with people that will help you stand out and advance.”

66. Active Review
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? Q ?

67. FinQloud Forever … Well, At Least For The Required Interval …
Case Study 6
Securities and Exchange Commission (1937).
Securities brokers' records must be stored on media that cannot be altered.
Interpreted to enable storage of records on read- write medium, provided it includes software to prohibit data alteration (2003).
Explain how technology advancement affects legal requirements for preservation of financial data.

68. Components of the FinQloud System
Case Study 6
This is the fundamental structure of the FinQloud system.
Amazon S3 provides scalable, elastic storage.
FinQloud processes the data in such a way that it cannot be updated, encrypts the data, and transmits the processed, encrypted data to AWS, where it is encrypted yet again and stored on S3 devices.
Data is indexed on S3 and can be readily read by authorized users.
Figure 6-33 Components of the FinQloud System

69. FinQloud Forever … (cont’d)
Case Study 6
Creates “finger print” based on content of record.
SEC specifically excludes extrinsic controls:
Authentication, passwords, and manual procedures,
Believes such systems could be readily misused to overwrite records.
When properly configured, meets requirements of SEC’s Rule 17a-3) and similar rules of Commodities Futures Trading Commission.