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Now taking virtualization a step further you as a small medium business don't have the buying capacity

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of a huge company such as Wal-Mart or Target large companies spending large amounts of money can negotiate

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prices that small medium businesses cannot.

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And that's not only true for retailing it's also true for service companies such as Amazon Microsoft

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and Google can buy hardware a lot cheaper than small medium businesses or enterprises can.

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In the past Amazon was buying so much hardware but not utilizing it all the time but buying it in preparation

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for the demand that they would have for sales at Amazon dot com that they started selling time on their

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hardware.

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And this is where cloud computing started.

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Amazon allow you to leverage their physical infrastructure to run virtual machines.

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Amazon isn't your only choice today we also have Microsoft Azure as well as Google Cloud.

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But all of these work on a similar premise.

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You can run

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servers on their infrastructure at prices that are much lower than you could buy.

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In other words if you wanted to run a small virtual machine you can actually run it for free on Amazon

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today or you can run it at such a low price that it makes more sense to run your infrastructure in the

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cloud rather than trying to buy hardware and maintained that hardware.

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If you're buying servers you need to provide power cooling and other resources to maintain those servers.

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So why not just run your servers in the cloud.

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Amazon already have that infrastructure in place.

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So do Microsoft and Google.

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They are paying so much less than you for hardware such as CPE use and disk space that it makes more

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sense for you to just leverage their hardware.

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That's what companies such as Dropbox and many others do they have in the past or currently run on top

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of Amazon.

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So in other words when you store files in Dropbox those files are stored on Amazon's storage and are

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processed by Amazon servers.

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Dropbox has recently changed that but a lot of startups like Dropbox use Amazon to provide the infrastructure

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to their businesses and the whole idea here is cost.

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You can spin up virtual machines very quickly and you can pay for the demand.

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So in other words if there's a spike in traffic you simply pay for the extra resources that you're using.

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You don't have to try and buy physical servers get them shipped physically install them rack them power

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them and so forth you can on the fly use the resources available in the cloud so in this example I'll

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sign into Amazon

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and what I can do here as an example is launch a virtual machine which they say will take less than

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a minute.

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So I could call this test 1 2 3

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I can decide which operating system I want to use as an example I'll select Ubuntu click Next I'm gonna

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go for a T2 micro server so I can see the amount of CPR you RAM and storage that to the server has noticed

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this is going to run free click Next

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I need to download a key pair to access that server but notice I can not create the instance and it's

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as simple as that for me to create a server and then I can connect to that server remotely and manage

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it.

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Notice I didn't have to purchase any hardware I didn't have to wait for the hardware to be shipped.

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I didn't have to rack the server I didn't have to power up the server I didn't have to configure a network

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I didn't have to configure storage I didn't have to install an operating system I didn't have to install

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applications.

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Those are all immediately available to me in a matter of minutes.

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It's as simple as that to start up a virtual machine on Amazon so notice in this example I've got a

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virtual machine running called Test one two three.

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It's currently initializing but I've also got other servers running on Amazon.

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I can manage these servers remotely so I can shut them down I can power them up.

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So as an example here I've got USA 1 Live Labs dot com.

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So the server USA 1 Live Labs 3 dot com is actually running on an Amazon server.

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I'm not told that to my test one two three surveys completed and in a moment I'll be able to connect

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to that server.

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But in this example I had my Live Labs server previously configured and as an example I could log in

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to that live lab server and in this example I can connect to a remote lab

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which is a physical switch running locally here in the UK but I'm actually connecting to this physical

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switch via my Amazon virtual machine running in the USA rather than me trying to setup a physical server

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like I did here and I would have to install the physical server power it up and so forth.

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Then I would install the host operating system which in this case is E6 I and then I have to install

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my guest operating system and install the applications on that I can simply spin up a server on Amazon

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and connect to it remotely.

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The server is once again running in the USA.

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I'm based in the UK but that's the advantage of cloud computing.

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It doesn't necessarily matter where that server is based.

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It's somewhere in the cloud.

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I don't know physically where that server is located.

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It's somewhere in the mid-west of the USA.

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I'm in the UK but I can simply connect to it like I would connect it to any other server on the Internet.

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Once again that's the power of cloud computing and the cloud.

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It's very quick and easy to spin up devices and leverage the infrastructure of cloud providers such

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as Amazon Microsoft Azure and Google.
