CMP424 Cloud Computing and Virtualization

Cloud Computing and VirtualizationUnit 1013 min read

Cloud Platforms & Case Studies: AWS, Azure, GCP, Hybrid Clouds

Unit 10 of Cloud Computing and Virtualization explores real-world cloud platforms (AWS, Microsoft Azure, Google Cloud), their architectures, pricing models, and case studies like Ncell’s migration to AWS and Daraz’s hybrid cloud. It compares public, private, and hybrid clouds, analyzes cost-benefit tradeoffs, and exami

Key Cloud Platforms and Their Architectures

1. Amazon Web Services (AWS)

AWS is the market leader in cloud computing, offering over 200 services including compute (EC2), storage (S3), databases (RDS), and AI (SageMaker). Its architecture follows a multi-region, multi-AZ (Availability Zone) design to ensure high availability and fault tolerance.

Core AWS Services

Category Service Use Case
Compute EC2 (Elastic Compute) Scalable virtual servers for web apps, batch processing.
Storage S3 (Simple Storage) Object storage for backups, media, and static websites.
Databases RDS (Relational DB) Managed PostgreSQL/MySQL for transactional workloads.
Networking VPC (Virtual Private Cloud) Isolated cloud networks with custom subnets, NAT, and security groups.
AI/ML SageMaker Training and deploying machine learning models.
Serverless Lambda Event-driven functions (e.g., processing uploads to S3).
EC2 (Virtual Servers)Lambda (Serverless)ComputeS3 (Object Storage)EBS (Block Storage)StorageRDS (Managed DB)DynamoDB (NoSQL)DatabaseAWS Services
AWS Service Categories with Ncell’s Used Services Highlighted

AWS Global Infrastructure

AWS operates 33 geographic regions, each with multiple Availability Zones (AZs). AZs are isolated locations within a region connected via low-latency links. For example:

  • Ncell’s AWS Migration: Ncell (Nepal’s largest telecom) migrated its customer support chatbot and billing system to AWS to handle 10M+ daily transactions. They used:
    • EC2 for scalable backend servers.
    • S3 for storing customer data backups.
    • Lambda to trigger alerts for fraudulent transactions.
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AWS Global Infrastructure with Ncell’s Mumbai-based deployment (ap-south-1)

2. Microsoft Azure

Azure is Microsoft’s cloud platform, tightly integrated with Windows Server, Active Directory, and Office 365. It is preferred by enterprises using Microsoft products (e.g., banks, government agencies).

Key Azure Services

Service Use Case
Azure VMs Windows/Linux virtual machines for legacy apps.
Azure Blob Storage Unstructured data (logs, media) with tiered storage (Hot/Cold/Archive).
Azure SQL Database Managed SQL Server in the cloud.
Azure Kubernetes Service (AKS) Orchestration for containerized apps (e.g., Daraz’s microservices).
Azure Active Directory (AAD) Identity and access management for SSO.

Hybrid Cloud Example: Daraz (Alibaba Group)

Daraz, Nepal’s largest e-commerce platform, uses a hybrid cloud model:

  • Public Cloud (Azure): Hosts scalable web apps (React.js frontend, Node.js backend) and AI recommendation engines.
  • Private Cloud (On-Prem): Stores sensitive customer data (payment records) in a high-security data center in Kathmandu.
  • Connectivity: Uses Azure ExpressRoute (private fiber link) to sync inventory between cloud and on-prem systems.
[object Object]React.js Frontend[object Object]Node.js Backend[object Object]Azure ExpressRoute
Daraz Hybrid Cloud: Public (Azure) + Private (Kathmandu Data Center)

3. Google Cloud Platform (GCP)

GCP is known for its AI/ML tools (TensorFlow, Vertex AI), global network (low-latency backbone), and Kubernetes expertise. It powers YouTube, Google Search, and Android backend services.

GCP’s Unique Features

Feature Details
Premium Tier Network Google’s private fiber backbone (200+ Tbps capacity) for ultra-low latency.
BigQuery Serverless data warehouse for analytics (e.g., NEPSE stock trend analysis).
Anthos Hybrid/multi-cloud management (runs Kubernetes anywhere).
Sustainability 100% renewable energy-powered data centers.

Case Study: NEPSE’s Cloud Migration

Nepal Stock Exchange (NEPSE) migrated its trading platform to GCP to:

  1. Reduce latency: Used Google Cloud’s Singapore region (closest to Nepal) to process trades in <30ms.
  2. Scale for Diwali peak: Auto-scaled Compute Engine instances during high-volume trading days.
  3. Cost savings: Paid 30% less than on-prem servers by using preemptible VMs for batch jobs.
sequenceDiagram
    participant User as Trader (Nepal)
    participant NEPSE as NEPSE Website
    participant GCP as Google Cloud (Singapore)
    participant DB as Firestore (Multi-Region)

    User->>NEPSE: Places order via mobile app
    NEPSE->>GCP: Routes request to Singapore region
    GCP->>DB: Validates order in Firestore
    DB-->>GCP: Returns confirmation
    GCP->>NEPSE: Updates trade status
    NEPSE-->>User: Shows confirmation
    Note over GCP,DB: All data replicated across 3 regions for HA.

Cloud Deployment Models Compared

Not all clouds are equal. Choose based on security, cost, and scalability needs.

016.2532.548.7565Public Cloud65Private Cloud20Hybrid Cloud15
Global Cloud Adoption Share (2023, Gartner)
Model Definition Pros Cons Example Use Case
Public Cloud Shared infrastructure (multi-tenant). Low cost, scalable, managed by provider. Less control, compliance risks. Startups (e.g., Pathao’s ride-hailing backend).
Private Cloud Dedicated infrastructure (single-tenant). High security, customizable. High upfront cost, maintenance overhead. Banks (e.g., NMB Bank’s core banking system).
Hybrid Cloud Mix of public + private with orchestration. Flexibility (e.g., public for web, private for data). Complex setup, vendor lock-in risks. Daraz (public for web, private for payments).
Multi-Cloud Services from multiple providers (e.g., AWS + Azure). Avoids vendor lock-in, best-of-breed tools. High management complexity. Global enterprises (e.g., Unilever).

Cost Optimization Strategies

Cloud costs can spiral if unchecked. Here’s how to save money:

1. Right-Sizing Resources

  • Example: A Daraz order-processing server was over-provisioned with 8 vCPUs but only used 20% CPU. Resizing to 2 vCPUs saved $1,200/month.
  • Tools: AWS Trusted Advisor, Azure Cost Management, GCP’s Recommendations.

2. Spot/Preemptible Instances

  • Spot Instances (AWS): Bid for unused capacity (up to 90% discount).
    • Use case: Batch processing (e.g., NTC’s nightly traffic data analysis).
  • Preemptible VMs (GCP): Cheaper VMs that can be terminated with 30s notice.

3. Reserved Instances

  • 1- or 3-year commitments for steady workloads (e.g., Ncell’s CRM servers).
  • Savings: Up to 75% vs. on-demand pricing.

4. Storage Tiering

Storage Type Use Case Cost (per GB/month)
S3 Standard Frequently accessed files. $0.023
S3 Infrequent Backups (accessed < once/month). $0.012
Glacier Deep Arch Compliance archives (retrieved yearly) $0.00099

Worked Example: NTC’s Traffic Data Storage

  • Problem: NTC stores 10TB of GPS traffic data but only queries 1TB/month.
  • Solution: Moved 9TB to Glacier Deep Archive, saving $2,400/year.

Security and Compliance in the Cloud

Cloud providers share responsibility with customers. AWS/Azure/GCP handle physical security, networking, and hypervisor security, but you own:

  • Data encryption (KMS, customer-managed keys).
  • IAM policies (least-privilege access).
  • Application security (OWASP Top 10).

Real-World Compliance Challenges

Company Challenge Solution
NMB Bank PCI-DSS compliance for credit card data. Used Azure Confidential Computing (encrypted-in-use data).
Ncell GDPR compliance for EU customer data. Stored data in AWS Frankfurt region with KMS encryption.
Daraz SOX compliance for financial audits. Immutable logs in Azure Blob Storage with versioning.

In the Real World

  1. eSewa (Nepal):

    • Idea Used: Serverless architecture (AWS Lambda).
    • How: eSewa’s payment gateway processes 50,000 transactions/hour during festivals. Instead of running 24/7 servers, it uses Lambda functions triggered by API calls. This reduces costs by 60% compared to always-on VMs.
  2. Pathao (Ride-Hailing):

    • Idea Used: Multi-region deployment (AWS + GCP).
    • How: Pathao’s backend runs in AWS (Singapore) for Southeast Asia and GCP (Iowa) for US operations. During the 2023 monsoon season, AWS’s Mumbai region faced outages, but traffic rerouted to GCP’s Tokyo region with <100ms latency.
  3. NTC’s Smart Traffic System:

    • Idea Used: Edge Computing (AWS IoT Greengrass).
    • How: NTC’s 500+ traffic cameras in Kathmandu don’t send raw video to the cloud. Instead, Greengrass processes frames locally, sending only anomaly alerts (e.g., accidents) to AWS. This reduces bandwidth by 95% and cuts costs by $8,000/month.

Exam Tip

This unit is heavily tested on:

  1. Platform Comparisons: Be ready to compare AWS, Azure, and GCP on pricing, services, and use cases (e.g., "Why would a Nepali bank choose Azure over AWS?").
  2. Case Study Analysis: Expect questions like:
    • "How does Daraz’s hybrid cloud reduce latency for Kathmandu users?"
    • "What security controls would you implement for NMB Bank’s cloud migration?"
  3. Cost Calculations: Practice estimating costs for scenarios like:
    • "A startup runs 5 t2.micro EC2 instances 24/7 for a month. What’s the AWS bill?" (Answer: $36.50).
  4. Diagrams: Always draw architecture diagrams (e.g., hybrid cloud, VPC) in exams. Use mermaid syntax if allowed.
  5. Compliance Shortcuts: Memorize these mappings:
    • PCI-DSS → Payment data (e.g., eSewa).
    • GDPR → EU customer data (e.g., Ncell’s international calls).
    • SOX → Financial audits (e.g., NMB Bank).

Pro Tip: For 10 marks, describe a real-world case study (e.g., Ncell’s AWS migration) with:

  • Problem → Solution → Tech used → Outcome.
  • Example:

    "NTC’s traffic cameras generated 10TB/month of video data. They used AWS IoT Greengrass to process data at the edge, reducing cloud costs by $8,000/month while maintaining real-time alerts."

Based on the PU BE Computer (PU) syllabus for Cloud Computing and Virtualization (CMP424), unit 10.

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