Unit 9 Study Guide

Software as a Service (SaaS): A third-party software-replacing service that is delivered online where the provider handles the software, data backup, and hardware maintenance.
Platform as a Service (PaaS): A service model where cloud providers offer a platform—including hardware, operating systems, development tools, and hosting—that customers use to build and deploy their own applications.
Infrastructure as a Service (IaaS): A bare-bones cloud offering where providers manage the underlying hardware, storage, and networking, while the client retains control over the operating system and software they choose to install.
Virtualization: Software that allows a single physical computer to function as if it were several different computers, each running its own operating system and applications.
Instance: A software-based copy of a computing resource, such as a virtual server or desktop, created using a pre-defined model.
Traditional vs Hosted Software:
The choice between traditional (on-premise) and hosted (cloud) software deployment represents a fundamental shift in how businesses manage their technology stacks. In a traditional model, organizations acquire their own physical hardware, purchase software licenses, and manage all supporting layers, including the operating system, database management, and security. In contrast, hosted services—now primarily known as cloud computing—involve using computing resources provided over the internet that are owned, operated, and maintained by a third-party provider
Cloudbursting: The use of public cloud resources to provide excess capacity during periods of spiking demand when an organization's internal private cloud resources are overtaxed.
Thin Client: A computing device with very little local power that performs the bulk of its processing and storage over a network, typically in the cloud.
Service Level Agreement (SLA): A negotiated contract between a customer and a vendor that specifies guaranteed levels of availability, performance, and uptime.
Black Swans: Unpredicted but highly impactful events, such as massive usage spikes, that require scalable computing resources to manage effectively.
Serverless Computing (Lambda): A cloud model where developers write code functions that execute in the cloud without needing to manage the underlying servers, operating systems, or hardware resources.
Vertical Niches (Vertical Markets): Products and services specifically designed to target the needs of a single, specialized industry, such as healthcare or legal services.
Distributed Computing: Distributed computing is a model where multiple, interconnected autonomous computers collaborate to solve complex tasks by sharing workloads, appearing as a single, unified system to the user
Cloud computing: the practice of replacing an organization’s or individual’s local hardware or software with services provided over the Internet. Instead of purchasing and maintaining physical infrastructure on-site, users access computing resources that are owned and operated by a third-party provider. This model treats computing like a utility—similar to electricity—allowing companies to avoid the business of running their own data centers.
TCO (Total Cost of Ownership): financial estimate intended to help buyers determine the direct and indirect costs of a product or system. The sources highlight that the initial purchase price often represents only about 20% of the total cost, while the remaining 80% consists of hidden costs such as:
Requirements analysis and site preparation.
Implementation, deployment, and integration.
Training and initial efficiency reductions.
Ongoing operational support, maintenance, and strategic development. Adopting cloud models like SaaS can lower TCO by shifting these from large, fixed capital investments to variable operating expenses.

A tech stack: layers of technology that make up an information system's ecosystem. According to Konana’s Ecosystem, a traditional stack includes the following layers from bottom to top:

Hardware (physical compute resources).
Operating System (controls hardware).
Database Management System (data persistence).
Middleware (transports data between apps).
Applications (user/enterprise functionality).

Cloud service models are defined by how much of this stack is outsourced to a vendor. In Infrastructure as a Service (IaaS), only the hardware is managed by the provider; in Platform as a Service (PaaS), the provider handles everything up through the database layer; and in Software as a Service (SaaS), the vendor manages the entire tech stack, including the software itself.

Quiz

Question: 1. A student at UT Austin is building a custom mobile app to help student organizations coordinate volunteer events. She wants to write the application’s code herself, but she does not want to spend time managing the operating system, database software, or physical server hardware. She decides to use a service that provides the development tools and hosting environment ready for her to use immediately.

Which cloud service model is this student utilizing?

A. Software as a Service (SaaS) B. Platform as a Service (PaaS) C. Infrastructure as a Service (IaaS) D. Private Cloud Deployment

Correct answer: B

Explanation: PaaS provides the student with the "platform"—including the operating system, database software, and development tools—so she can focus solely on writing and deploying her app code. Choice A is incorrect because SaaS would involve using a finished application rather than building her own. Choice C is incorrect because IaaS would require her to manage the operating system and database software herself on top of the provided hardware. Choice D is incorrect because the scenario implies using a third-party provider's tools, not an exclusive internal pool of resources.

Question: 2. A small student-run online boutique specializing in Longhorn gear suddenly sees a massive 500% spike in web traffic after a famous influencer mentions them in a viral video. The boutique's internal servers are quickly overwhelmed by the number of shoppers trying to checkout. To prevent the site from crashing, their system automatically shifts the extra web traffic to a public cloud provider to handle the temporary surge in demand.

Which concept best describes the boutique's strategy for handling this demand spike?

A. Virtualization B. Cloudbursting C. Vertical Niches D. Software Piracy

Correct answer: B

Explanation: Cloudbursting is specifically defined as the use of cloud computing to provide excess capacity when an organization's internal resources are overtaxed by a demand spike. Choice A is incorrect because virtualization is the underlying software that makes a computer act as several, but it is not the act of shifting traffic between clouds. Choice C is incorrect because vertical niches refer to products designed for specific industries, not capacity management. Choice D is incorrect because software piracy involves illegal copies of software, which is not relevant to handling web traffic.

Question: 3. During a summer internship at a local law firm, you are asked to help the partners decide between buying a traditional software license for $5,000 or a monthly SaaS subscription for $100. Your boss only looks at the $5,000 price tag and thinks the purchase is more expensive. You remind them that the initial purchase price is often only a small fraction of the total expenses, which also include hidden costs like training, ongoing tech support, and future system upgrades.

Which concept are you explaining to your boss to help them make a better financial decision?

A. Total Cost of Ownership (TCO) B. Economies of Scale C. Network Effects D. Switching Costs

Correct answer: A

Explanation: TCO is a financial estimate that includes the purchase price of a system plus all the "hidden" costs like implementation, training, and maintenance, which can represent up to 80% of total costs. Choice B is incorrect because economies of scale refer to cost advantages gained through high-volume production, not a calculation of total expenses. Choice C is incorrect because network effects describe how a product increases in value as more people use it. Choice D is incorrect because switching costs are the expenses incurred when moving from one product to another, which is only one part of the TCO.

Question: 4. The leader of a large student organization needs to host three different websites: one for member sign-ups, one for an event calendar, and one for a private discussion forum. Instead of buying three separate physical computers to act as servers, they use a specific type of software. This software allows their single physical server to act as three separate computers, each running its own operating system and dedicated to a specific task.

What technology is the student org leader using to increase their hardware efficiency?

A. Containers B. Cloudbursting C. Virtualization D. Service Level Agreements (SLA)

Correct answer: C

Explanation: Virtualization is the software that allows a single physical computer to function as if it were several different computers, each with its own OS and apps. Choice A is incorrect because containers are a specific type of virtualization that shares an OS, while the scenario specifies each has its own OS. Choice B is incorrect because cloudbursting is about shifting capacity to a public cloud vendor during demand spikes. Choice D is incorrect because an SLA is a contract between a vendor and a customer regarding performance guarantees.

Question: 5. For a marketing internship, you start using a new, niche project management app created by a small startup to organize all your firm's campaign data. Halfway through the summer, the startup suddenly goes bankrupt and shuts down its website. You realize that because you don't have the software installed on your own computer, you have lost access to the app and all the client data you stored on the startup's servers.

Which risk of SaaS adoption is MOST evident in this scenario?

A. Network latency B. Vendor lock-in and viability C. High capital expenditure D. Limited customization

Correct answer: B

Explanation: A major risk of SaaS is the dependence on a single vendor's long-term viability; if the vendor goes out of business, the customer may lose both functionality and data. Choice A is incorrect because latency refers to networking speed issues, not the total loss of a service. Choice C is incorrect because SaaS typically lowers capital expenditure by shifting costs to variable operating expenses. Choice D is incorrect because, while SaaS can be less flexible than custom software, the primary issue here is the total loss of the service.