Question 1 [40 marks] MyBank is a Fintech company providing customer-facing (B2C) app-based banking services. In 2018, they tested their offering (online payments, bank transfers, etc.) with a small number of beta testers utilising their own IT infrastructure in a full on-premise model. As part of their financial review they would like to assess their 2018 utilisation levels to determine if other models could have been more efficient. The following were the instancehours used each month (expressed in thousands) Total 2018 instance/hours used per month on the on-premise model Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 81100.05 94 82 117 134 103 144 113100 77 104.95 Please note: all monthly quantities are expressed in thousands of instance/hours per month For example, 00.05 = 100,050 and 77 = 77,000 1.1 Full on-premise model. Each server cost 5,000 and had a capacity of 5,000 instance/hours per month. All fixed costs were 100,000 (excluding server CAPEX). Assume there were no other costs and that you used the minimum number of servers possible. What was the on-premise model Total Cost of Ownership (TCO)? [6 Marks] MyBank would like to know how much it would have cost to operate each of the following three models: 1.2 Cloud-only model, using AWS on-demand instances only. Assume that all fixed costs related to the full on-premise model also apply to the cloud-only model. If the average AWS on-demand instance/hour price is 0.22, what is the cloud-only model TCO? [4 Marks] 1.3 Hybrid model, consisting of on-premise servers to satisfy the minimum monthly demand and AWS on-demand instances at 0.22 per instancehour to satisfy additional demand. Based on this, please answer the following questions assuming that all fixed costs that apply to the previous models also apply to this hybrid model. What is the TCO for this hybrid model? [8 Marks] 1.4 Hybrid model with spot instances, consisting of on-premise servers to satisfy the minimum monthly demand and AWS spot instances to satisfy additional demand. What is the TCO for this hybrid model based on the average monthly AWS spot instance/hour pricing (in cents) as follows: Average monthly AWS spot instance/hour pricing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 4 7 15 13 10 9 5 9 15 18 11 8 Please note: all monthly quantities are expressed in cents. Example: 4 = 0.04 [6 Marks] 1.5 TCO model comparison. Consider the TCO for all 4 models. Given the advantages and disadvantages of each, what recommendation would you issue to MyBank? Critically compare and contrast the two best options for MyBank using commonly accepted utility computing criteria and referencing at least one cloud economics whitepaper or industry publication [16 Marks] Page 2 of 4 Question 1 [40 marks] MyBank is a Fintech company providing customer-facing (B2C) app-based banking services. In 2018, they tested their offering (online payments, bank transfers, etc.) with a small number of beta testers utilising their own IT infrastructure in a full on-premise model. As part of their financial review they would like to assess their 2018 utilisation levels to determine if other models could have been more efficient. The following were the instancehours used each month (expressed in thousands) Total 2018 instance/hours used per month on the on-premise model Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 81100.05 94 82 117 134 103 144 113100 77 104.95 Please note: all monthly quantities are expressed in thousands of instance/hours per month For example, 00.05 = 100,050 and 77 = 77,000 1.1 Full on-premise model. Each server cost 5,000 and had a capacity of 5,000 instance/hours per month. All fixed costs were 100,000 (excluding server CAPEX). Assume there were no other costs and that you used the minimum number of servers possible. What was the on-premise model Total Cost of Ownership (TCO)? [6 Marks] MyBank would like to know how much it would have cost to operate each of the following three models: 1.2 Cloud-only model, using AWS on-demand instances only. Assume that all fixed costs related to the full on-premise model also apply to the cloud-only model. If the average AWS on-demand instance/hour price is 0.22, what is the cloud-only model TCO? [4 Marks] 1.3 Hybrid model, consisting of on-premise servers to satisfy the minimum monthly demand and AWS on-demand instances at 0.22 per instancehour to satisfy additional demand. Based on this, please answer the following questions assuming that all fixed costs that apply to the previous models also apply to this hybrid model. What is the TCO for this hybrid model? [8 Marks] 1.4 Hybrid model with spot instances, consisting of on-premise servers to satisfy the minimum monthly demand and AWS spot instances to satisfy additional demand. What is the TCO for this hybrid model based on the average monthly AWS spot instance/hour pricing (in cents) as follows: Average monthly AWS spot instance/hour pricing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 4 7 15 13 10 9 5 9 15 18 11 8 Please note: all monthly quantities are expressed in cents. Example: 4 = 0.04 [6 Marks] 1.5 TCO model comparison. Consider the TCO for all 4 models. Given the advantages and disadvantages of each, what recommendation would you issue to MyBank? Critically compare and contrast the two best options for MyBank using commonly accepted utility computing criteria and referencing at least one cloud economics whitepaper or industry publication [16 Marks] Page 2 of 4