Lab 1 Case Study on Cloud Computing in Nepal

1. Objectives
• To learn about evolution of cloud computing, history of cloud computing, types of cloud
computing, benefits and challenges of cloud computing, cloud service providers in Nepal and
status of cloud computing in Nepal.

2. Introduction
Cloud computing refers to the use of hosted services, such as data storage, servers, databases,
networking and software over the internet. Computer system resources, especially data storage
and computing power, are available on-demand, without direct management by the user in clod
computing.

3. History of Cloud Computing

1960s - 1970s: Mainframes laid the foundation, allowing multiple users to access computing
resources through time-sharing systems.

1980s - 1990s: Virtualization technologies emerged, enabling multiple operating systems to

run on a single physical machine.

1990s: The internet boom saw the rise of Application Service Providers (ASPs), though they
faced challenges in performance and scalability.

Early 2000s: Grid Computing and Utility Computing Grid computing and utility computing
concepts paved the way, emphasizing the delivery of computing resources as a utility.

Mid-2000s: Birth of Cloud Computing The term "cloud computing" gained popularity, with
Amazon Web Services (AWS) introducing Elastic Compute Cloud (EC2) in 2006

Late 2000s: Cloud services expanded to include Infrastructure as a Service (IaaS), Platform as
a Service (PaaS), and Software as a Service (SaaS).

2010s: Cloud computing became mainstream, with businesses of all sizes adopting it for
scalability, flexibility, and cost savings.
2020s: Cloud computing continued to evolve, with a focus on specialized services such as machine
learning and artificial intelligence. Multi-cloud and hybrid cloud strategies gained prominence.

4. Types of Cloud Computing

Cloud computing can be classified based on the deployment model or the type of service. Based
on the specific deployment model, we can classify cloud as public private and hybrid cloud.
At the same time, it can be classified as infrastructure-as-a-service (PaaS), and software-as-a-
service (SaaS) based on the service the cloud model offers.

Based on Deployment Model

Deployment models define how the cloud infrastructure is deployed and who has access to it.
The main types of cloud computing based on deployment models are:

Figure 1: Types of Cloud Computing

i. Public Cloud: In a public cloud, cloud resources are owned and operated by a third-party
cloud service provider and are made available to the general public or a broad industry group.
These resources are accessible over the internet.
Characteristics: Public clouds are highly scalable and cost-effective, as users only pay for
the resources they consume. They are suitable for a wide range of use cases but may raise
security and privacy concerns.
ii. Private Cloud: A private cloud is dedicated to a single organization. It can be hosted on-
premises or by a third-party provider. The organization has exclusive access to and control
over the cloud infrastructure.
Characteristics: Private clouds offer greater control, security, and customization but can be
more expensive to set up and maintain. They are commonly used by organizations with strict
security and compliance requirements.

iii. Hybrid Cloud: A hybrid cloud is a combination of both public and private clouds. It allows
data and applications to be shared between them. Users can move workloads between the two
environments as needed.
Characteristics: Hybrid clouds offer flexibility, allowing organizations to benefit from both
public and private cloud resources. They are suitable for companies with dynamic workloads
and data management needs.

Based on Service Model

Service models represent a spectrum of control and responsibility. The types of cloud computing
based on service model are:

i. Infrastructure-as-a-service: Infrastructure as a service or IaaS is a type of cloud computing in

which a service provider is responsible for providing servers, storage, and networking over a
virtual interface. In this service, the user doesn’t need to manage the cloud infrastructure but
has control over the storage, operating systems, and deployed applications.
Use Cases: IaaS is suitable for organizations that want to maintain control over the
infrastructure while offloading hardware management to cloud providers. It is often used for
development and testing, hosting websites, and running custom applications.

ii. Platform as a Service (PaaS): PaaS is a type of cloud computing that provides a development
and deployment environment in cloud that allows users to develop and run applications without
the complexity of building or maintaining the infrastructure. It provides user with resources to
develop cloud-based applications. In this type of service, a user purchases the resources from a
vendor on a pay-as-you-go basis and can access them over a secure connection.
PaaS doesn’t require users to manage the underlying infrastructure, i.e., the network, server,
operating systems, or storage, but gives them control over the deployed applications. This
 allows organizations to focus on the deployment and management of their applications by
freeing them of the responsibility of software maintenance, planning, and resources
procurement.

Use Cases: PaaS is popular among developers who want to accelerate application development
and deployment. It's ideal for web and mobile application development, as well as microservices
and API development.

iii. Software as a Service (SaaS): SaaS allows users to access a vendor’s software on cloud on a
subscription basis. In this type of cloud computing, users don’t need to install or download
applications on their local devices. Instead, the applications are located on a remote cloud
network that can be directly accessed through the wed or an API.
In the SaaS model, the service provider manages all the hardware, middleware, application
software, and security. Also referred to as ‘hosted software’ or ‘on-demand software’, SaaS
makes it easy for enterprise to streamline their maintenance and support.

Use Cases: SaaS is used for a wide range of applications, including email services (e.g., Gmail),
office productivity software (e.g., Microsoft 365), customer relationship management (e.g.,
Salesforce), and many more everyday software tools.

5. Benefits of Cloud Computing

i. Cost-Efficiency: Cloud computing eliminates the need for investing in and maintaining on-
premises hardware and infrastructure. This can result in significant cost savings, as cloud
services are typically offered on a pay-as-you-go or subscription basis.
ii. Scalability: Cloud services are highly scalable. Users can easily increase or decrease their
computing resources and storage capacity to match their current needs. This scalability is
especially valuable for businesses with fluctuating workloads.
iii.Flexibility and Accessibility: Cloud services can be accessed from anywhere with an
internet connection. This enables remote work, collaboration, and access to resources from
various devices, providing flexibility to individuals and organizations.
 iv. Disaster Recovery and Business Continuity: Cloud providers offer robust backup and
disaster recovery solutions. Data is stored in multiple data centers, reducing the risk of data
loss due to hardware failures or disasters.

6. Challenges in Cloud Computing

i. Downtime: Almost every cloud user will tell you that outages tops their list of cloud
computing challenges Opens a new window. At times, cloud service providers may get
overwhelmed due to the huge number of clients they provide services to each day. This may
lead to technical outages, due to which your applications may temporarily experience some
downtime.
ii. Internet connection dependency: A user may not be able to access the data on cloud without
a good internet connection and a compatible device. Moreover, using public Wi-Fi to access
your files could pose a threat if the right security measures are not taken.
iii. Financial commitment: Cloud providers use a pay-as-you-go pricing model. However,
businesses need to give a monthly or annual financial commitment for most subscription
plans. This needs to be factored into their operating costs.
iv. Security risks: Even if your cloud service provider promises you that they have the most
reliable security certifications, there’s always a chance of losing your data. With hackers
increasingly targeting cloud storage to gain access to sensitive business data, this might be an
even greater concern, for which the appropriate measures need to be taken.

7. Adoption of Cloud Computing in Nepal

In Nepal, the adoption of cloud computing is gaining momentum, with a focus on managed
services, collocation, network support, and limited cloud offerings. Datacenters (DCs) play a
crucial role in providing these services, with notable entities.
Some of the cloud service providers and Data centers in Nepal are:
1. Government Integrated Data Center (GIDC):
Established in 2009 and operated through the National Information Technology Center
(NITC). Initially offered web hosting, email hosting, and server co-location services.
Currently provides limited cloud services, mainly Infrastructure as a Service (IaaS) and
Platform as a Service (PaaS). Services are primarily extended to government organizations,
 and all offerings are free of cost, lacking a formal Service Level Agreement (SLA) between
clients and GIDC.There is also a Disaster Recovery Centre which has been operating since
May 14, 2019, in Hetauda, Makawanpur.
2. DataHub:
Data Hub Pvt. Ltd. Data Hub is an international standard internet data center in Nepal. It
provides the services like co-location services, data and network security, disaster recovery. It
is located on Thapathali, Kathmandu. It provides services like: Hosting for apps, websites,
ERPs, and web apps.

Some of the features of DataHub are:

• Virtual Private Cloud (VPC) with high availability
• Advanced security features like hardware-based firewalls
• Carrier-neutral data centers.
3. Nepal Telecom (NTC) Data Center:
NTC is state owned telecommunication service provider in Nepal with 85% of the government
share. NTC has 7 Data Centers across Nepal. Inside Kathmandu valley, NTC has 4 Data centers
located in Jawalakhel, Sundhara, Tripureshwor and Babarmahal. Outside Kathmandu valley
NTC has 3 datacenters located in Hetauda, pokhara and Butwal.
4. Ncell Data Center:
Ncell, the largest private cellular operator of the country, has 4 Data Centers across Nepal. Ncell
is not much open about these data centers, but the centers are meant for complete back up of
the company. Data centers are in Kathmandu, Biratnagar, Hetauda and Pokhara.
5. Cloud Himalaya:
Cloud Himalaya is an International Grade Data Management company in Nepal. Cloud
Himalaya was established on early 2013 and providing server co-location and cloud services.
They have a slogan, “YOU TAKE CARE OF YOUR BUSINESS, WE TAKE CARE OF
YOUR DATA” Cloud Himalaya is focused on Server Co-location Services.

8. Conclusion
In this lab we have learnt concept of cloud computing, evolution of cloud computing, types,
benefits, disadvantages and different cloud service providers and Data centers in Nepal.