WEEK 5 — DIGITAL TRANSFORMATION
Cloud/Fog/Edge Computing
Agenda
- 1Introduce Cloud, Fog, and Edge computing
- 2Explain various cloud service models
- 3Case study involving the choice of service models
- 4Edge computing
- 5Why choose Edge over Cloud
- 6How Fog computing can bridge Edge and Cloud
- 7Conclusion
- 8Q&A
CHAPTER 01
Cloud Computing
CASE STUDY
The Growing Pains of FreshBake Bakery
- FreshBake Bakery is a small but rapidly expanding business with 10 physical stores in Vancouver.
- They currently host their website, inventory system, and customer loyalty program on an aging on-premise server.
- During peak holiday seasons, their website crashes due to traffic spikes, inventory updates lag, and IT maintenance costs are eating into profits.
- The owner wants to scale operations, improve customer experience, and reduce IT headaches but lacks technical expertise.
- Your group is a tech advisory team hired by FreshBake.
- Analyze their challenges and propose solutions.
Questions
- 1What are the key business outcomes negatively affected by the current digital infrastucture of the company?
- 2
Propose a solution for the company outlining:
- 1.First steps
- 2.Transformation
- 3.Expected improvements in outcomes
DEFINITION
What is Cloud Computing?
Cloud computing delivers on-demand computing services:
- storage,
- software,
- processing power
over the internet.
Instead of owning physical servers, companies rent resources from cloud providers like AWS, Microsoft Azure, or Google Cloud.
CLOUD COMPUTING
Key Characteristics of Cloud Computing
1.Scalability
- Resources can be scaled up or down based on demand.
- E-commerce platforms handle traffic spikes during sales.
2.Cost-Effectiveness
- Reduces capital expenses by eliminating the need for in-house hardware.
- Pay only for what you use (“pay-as-you-go” model)
3.Accessibility
- Services are accessible from anywhere with an internet connection.
4.Flexibility and Innovation
- Supports rapid deployment of applications and services, fostering innovation.
Each business below uses the cloud. Name the key characteristic of cloud computing that each case shows.
Which concept does this case show?
CHAPTER 02
Cloud Service Models
CASE STUDY
Airbnb
Scenario: Airbnb hosts millions of listings worldwide, requiring scalable infrastructure to handle fluctuating demand.
Solution: Airbnb uses AWS EC2 to:
- Scale server capacity during peak travel seasons.
- Reduce infrastructure costs by only paying for what they use.
- Ensure high availability for its global user base.
SERVICE MODEL 1
Cloud Service Models
1.Infrastructure as a Service (IaaS):
- Provides virtualized computing resources (e.g., servers, storage).
- Example: AWS EC2.
Amazon Web Services (AWS) EC2
Amazon Elastic Compute Cloud (EC2) is a prominent IaaS offering that allows businesses to rent virtual servers for their computing needs.
CLASS DISCUSSION
Discussion Question
Imagine your group is advising a company considering migrating its on-premise IT infrastructure to an IaaS provider (e.g., AWS, Azure, Google Cloud). Each group will be assigned a specific industry:
healthcare,e-commerce,government,education.
- 1What are the top 3 factors (e.g., cost, scalability, security, compliance, latency) your assigned industry should prioritize when selecting an IaaS provider? Justify your choices.
- 2What unique challenges might this industry face in adopting IaaS, and how could they mitigate them?
- 3Draft a shortlist of best practices for ensuring a smooth transition to IaaS, tailored to your industry’s needs.
- Each group will present their recommendations.
- The class will then discuss:Are there universal IaaS adoption principles across industries, or do priorities fundamentally differ?
CASE STUDY
Snapchat
Scenario: Snapchat needed a platform to support rapid user growth and enable its engineers to focus on app development (company's main focus) rather than server management.
Solution: Snapchat used Google App Engine to:
- Deploy its app quickly without worrying about server provisioning.
- Automatically scale resources as its user base expanded.
- Simplify backend management with integrated tools and APIs.
SERVICE MODEL 2
Cloud Service Models
2.Platform as a Service (PaaS):
- Offers tools and platforms for developers to build applications.
- Google App Engine.
Google App Engine (GAE)
Google App Engine (GAE) is a PaaS that enables developers to build, deploy, and scale applications without managing the underlying infrastructure.
SERVICE MODEL 3
Cloud Service Models
3.Software as a Service (SaaS):
- Delivers fully functional applications over the internet.
- Salesforce,
- Microsoft Office 365.
Salesforce CRM
Salesforce is a leading SaaS platform offering Customer Relationship Management (CRM) tools that help businesses manage customer interactions, sales, and marketing activities.
Sort each cloud service into the model it belongs to.
Tap a card, then tap the group it belongs to.
USE CASE
Use Case: Coca-Cola Enterprises
Scenario: Coca-Cola Enterprises needed a centralized solution to manage sales processes across its global workforce.
Solution: By adopting Salesforce CRM, Coca-Cola was able to:
- Provide sales teams with real-time access to customer data from any device.
- Streamline customer engagement and improve collaboration across departments.
- Analyze customer behavior and generate insights to optimize marketing strategies.
CLOUD COMPUTING
Benefits of Cloud Computing
1.Agility and Speed
- Companies can quickly adapt to changes and deploy solutions faster.
2.Reduced IT Overhead
- Outsourcing infrastructure management to cloud providers.
Business Benefits of Cloud Computing
3.Enhanced Collaboration
- Everything is on the web
- Teams can work together using shared tools and resources.
- Develop using various devices and places
4.Global Reach
- Cloud data centers allow companies to operate globally with low latency.
CLOUD COMPUTING
Risks and Challenges
Security Concerns:
Data breaches and unauthorized access can occur if not managed properly.
Dependence on Providers:
Outages from providers can disrupt operations.
Cost Management:
Poorly managed usage can lead to unexpected expenses.
Each company below runs on the cloud. Name the risk or challenge each case shows.
Which concept does this case show?
CLASS DISCUSSION
Discussion Question
How has Netflix leveraged cloud computing to transform its global streaming service?
Consider scalability, content delivery, and customer experience in your answer.
CHAPTER 03
Edge Computing
CASE STUDY
The Real-Time Dilemma at HealthGuard Hospital
- HealthGuard Hospital uses IoT-enabled wearable devices to monitor patients’ vital signs (e.g., heart rate, oxygen levels) in real time.
- Currently, all data from these devices is sent to a centralized cloud server for processing.
- However, during emergencies, doctors experience delays in alerts, and network congestion during peak hours causes critical data to arrive too late.
- The hospital also struggles with sky-high bandwidth costs and security concerns due to transmitting vast amounts of sensitive patient data.
- They want to improve response times, reduce costs, and ensure reliable care without compromising patient privacy.
CLASS DISCUSSION
Discussion Question (Group Activity)
- Your group is a tech innovation team tasked with advising HealthGuard.
- Analyze their challenges and propose a solution to transform their operations.
- 1
What are the key drawbacks of relying solely on a centralized cloud for real-time patient monitoring?
- 2
Which 3 core benefits of edge computing (e.g., reduced latency, bandwidth optimization, data privacy, offline operation) would most directly address the hospital’s needs? Justify your choices.
- 3
What practical steps should the hospital take to implement edge computing? Consider hardware/software needs, hybrid cloud-edge integration, and staff training.
DEFINITION
What is Edge Computing?
Edge computing processes data close to its source,
- IoT devices
- local servers
instead of relying on centralized cloud data centers.
- reduces latency,
- minimizes bandwidth usage,
- enables faster decision-making
- for time-sensitive applications.
EDGE COMPUTING
Edge Computing
1.Proximity to Data Source
- Data is processed at or near the device generating it, reducing delays.
2.Low Latency
- Critical for real-time operations
- autonomous vehicles
- industrial automation.
3.Bandwidth Optimization
- Less data is sent to the cloud,
- saving costs
- reducing internet congestion.
4.Reliability
- Systems can continue to function even with limited or no internet connectivity.
Match each characteristic of edge computing with the case that shows it.
Characteristic
Case
Tap a term, then the example it goes with.
USE CASE
Edge Computing in Retail
Company: Walmart
Scenario: Walmart uses IoT sensors and edge computing in its stores to:
- Monitor inventory in real-time.
- Optimize energy usage for refrigeration and lighting systems.
- Process customer data locally for personalized shopping experiences.
CHAPTER 04
Fog Computing
CLASS DISCUSSION
Running a Factory
- Imagine you are managing a factory.
- It has dozens of machines operating simultaneously.
- Each machine produces sensor data about its speed, components, and production
- The data needs to be analyzed in real time to derive key business insights.
Propose a computing model for the factory.
Discuss the pros and cons of your model.
DEFINITION
Fog Computing
Fog computing is a decentralized computing model that extends cloud computing by bringing data processing closer to the network's edge.
It bridges the gap between cloud computing (centralized) and edge computing (localized), enabling more efficient and scalable data processing across distributed systems.
FOG COMPUTING
Key Characteristics of Fog Computing
1.Intermediate Layer
- Sits between edge devices and the cloud, handling data locally but still connecting to the cloud for large-scale analysis.
2.Distributed Processing
- Data is processed across multiple fog nodes (e.g., routers, gateways) within the network (i.e. local network).
3.Scalability
- Can handle large volumes of data from multiple IoT devices without overwhelming the cloud.
4.Supports Real-Time Applications
- Offers low-latency processing for applications like smart cities and industrial IoT.
A city adds 5,000 parking sensors. Gateways in each neighbourhood process the sensors' readings first, so the city's cloud keeps up even though five times more devices are now sending data. Which characteristic of fog computing does this show best?
USE CASE
Fog Computing in Smart Cities
Company: Cisco
Scenario: Cisco enables smart cities to use fog computing for applications like:
- Managing traffic lights based on real-time traffic conditions.
- Processing surveillance camera data locally for faster threat detection.
- Enhancing energy efficiency through real-time monitoring of utilities.
Where is each piece of data processed? Sort each case into edge, fog or cloud.
Tap a card, then tap the group it belongs to.
CONCLUSION
Conclusion
KEY TAKEAWAYS
- 1Introduction to Cloud, Fog, and Edge computing
- 2Cloud service models (IaaS, PaaS, SaaS)
- 3IaaS in different industries
- 4Edge, Fog, and Cloud, and how to combine them effectively