Monday, January 31, 2011

Azure and clouds computing...


ou have to travel from point A to point B on a regular day-to- day basis. You have two options.

Option 1: You can buy a nice car and drive it yourself(or even hire a driver) from Point A to B
Obviously you have to consider  the cost of the car since you have to buy the car, then you pay for the gas. Because of too much of use the car will need maintenance, servicing, tire change and your overall cost slowly goes up. You may decide not to travel from point A to point B any more and in that case you end up selling the car at the half price you had bought it for.

Option 2: You can get in a luxury Bus that goes from Point A to point B and share the cost with other passengers. You don’t have to drive it instead you enjoy the ride. You don’t pay for the gas, maintenance, tire change and you don’t pay the driver's salary. You buy the ticket only on the days when you are travelling. If you stop going from point A to point B, you simply stop buying the ticket. Basically you pay only for how much you use the bus and don’t pay on the days when you don’t use it.

The second option is much feasible and SCALABLE. The reason I call it scalable is because a Bus can carry 50 passengers from point A to point B at a very low cost to individual passenger as compared to buying your own car to do the same  thing. You can think of this option as CLOUD COMPUTING in virtual world.

Business Scenario:  there is a small startup online company. In order to go online they need to buy servers, network, RAM, space hardware and lots of software costs like servers, sql and data center cost. This will also include hiring the IT people  to setup the network.
Case1: this company does an excellent job and they now have 10x customers, which means they add more software licenses, more hardware and buy more bandwidth from data center to scale to the increased number of customers. Therefore they face the scalability issues as a result of doing good business.
Case2: Lets say this company didn’t do well, as a result they are in loss with hardware, software, data center costs and other costs. All this is now a waste.

Solution: Pay per use is the solution. This is a model where you are sharing the hardware, software, IT maintenance, bandwidth and all other costs. This is nothing but cloud computing and compare it with our luxury bus. Now if your business was good or bad the cost of closing the business or scaling to x number of customers will significantly reduce the cost. There are so many providers that provide the could computing

Cloud computing is like a platform where you host your application and forget about everything else because it will allocate all the resources that your application will need based on its requirements.

Will cover more in next session….keep thinking and remember the luxury bus is the future:)

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