Module 1 - Digital Transformation with GC

Innovations, paradigm shifts, and digital transformation
Innovation doesn’t come in a linear pattern. It comes in waves. And each of these waves is powered by a breakthrough technology.
Each of these inventions like printing press, the steam engine, electricity, the transportation age etc. triggered thousands of innovations, changing what's possible in life and work.
The entire Industrial Revolution resulted from new technologies that came together and facilitated new ways of working.
Paradigm Shift - A fundamental and irreversible change in the way that humans work and engage with the world. What the printing press, the steam engine, and electricity all have in common is that they’re examples of a paradigm shift.
Digital Transformation - When an organization uses new digital technologies, such as public, private, and hybrid cloud platforms to create or modify business processes, culture, and customer experiences to meet the needs of changing business and market dynamics.
Organizations choose digital transformation frameworks to foster innovation, generate new revenue streams, and adapt quickly to market changes and customer needs.
Digital transformation helps organizations change how they operate and redefine relationships with their customers, employees, and partners by modernizing their applications, creating new services, and delivering value.
e.g. Many vehicles are now software-driven, and they receive regular updates much like a laptop or phone. In chemistry, big data and artificial intelligence (or AI) facilitates drug discovery.
Over 50% of all IT spending will go toward digital transformation and innovation by 2024.
more than 90% of new enterprise apps will have AI embedded within them.

What is cloud?
The cloud is a metaphor for the network of data centers which store and compute information that’s available through the internet.
There are multiple types cloud technologies available,
i) On-premises
Benefits
Hosted on-site
Located and operated in an organization’s data center
Traditional way of managing IT infrastructure
Doesn’t require third-party access
Owners have physical control
No payment for ongoing access
Drawbacks
Require physical space
Require a specialized room
Require expert personnel
Difficult to scale
Acquire more computing resources than needed
ii) Private cloud -
Benefits
Dedicated to a single organization
Single-tenant or corporate cloud
Same kind of ongoing maintenance and management as for traditional on-premises infrastructure
Hosted within an organization’s own private servers
Benefits of a public cloud but with more customization available
iii) Public cloud -
The public cloud is where on-demand computing services and infrastructure are managed by a third-party provider, such as Google Cloud, and shared with multiple organizations or “tenants” through the public internet.
Benefits
On-demand availability of computing and infrastructure resources
No need to acquire, configure, or manage resources
Pay only for what is used
iv) Hybrid cloud -
In a hybrid cloud, applications run in a combination of different environments. The most common hybrid cloud example is combining a public and private cloud environment
v) Multicloud -
The term multicloud describes architectures that combine at least two public cloud providers, such as Google Cloud, Amazon Web Services, Microsoft Azure, or others.
Today, most organizations embrace a multicloud strategy.

The benefits of cloud computing
i) Scalability
Access to scalable resources
Latest technology on-demand
Accelerates deployment time
ii) Flexibility
Access services from anywhere
Scale services up
Scale services down
iii) Agility
Develop new applications
Rapidly get them into production
No infrastructure worries
iv) Strategic value
Competitive advantages
Higher return on investment
Innovate and try new ideas
v) Security
Stronger than enterprise data centers
Depth and breadth of mechanisms
Dedicated teams
vi) Cost-effectiveness
Pay for what is used
No overbuilding data centers
IT staff can work on strategic initiatives

Why it’s critical to transform and embrace new technology
As the world and business change, keeping technology the same instead of being open to transforming is risky for an organization.
The reality is that digital transformation is an ongoing process, not a one-time effort. Organizations must embrace new technology.
It's critical that organizations embrace new technology as an opportunity to evolve, serve their customers better, and gain a competitive advantage. This is where cloud computing plays a significant role.

Cloud eras
i) VM cloud era
No need to buy or operate hardware
Major catalyst for cloud-native companies
Very few startups operated their own data centers
ii) Infrastructure cloud era
Saved costs
Faster development
Better security
Reduction of management load
Focus on building new capabilities
iii) Digital transformation is more than simply migrating and shifting systems to the cloud
iv) A transformation cloud provides an environment for
App and infrastructure modernization
Data democratization
People connections
Trusted transactions
To facilitate this degree of constant innovation and progress, today’s most ambitious organizations are building transformation clouds. A transformation cloud is a new approach to digital transformation. It provides an environment for app and infrastructure modernization, data democratization, people connections, and trusted transactions.
v) A transformation cloud era organization
Benefits from cloud computing
Drives innovation
Generates new revenue streams
Adapts quickly to market changes
Adapts quickly to customer needs
vi) Biggest challenges and needs to accelerate digital transformation
Data
Infrastructure
Hybrid workplace
Security
Sustainability

Google’s transformation cloud
Capabilities that form the basis of the transformation cloud
i) Data Cloud
Data is critical for innovation and differentiation.
A data cloud is a unified solution to manage data across the entire data lifecycle. Data clouds let organizations identify and process data with great scale, speed, security, and reliability. Leading companies use a data cloud to encourage data-driven transformation, all with AI built in.
ii) Open infrastructure Cloud
Freedom to securely innovate and scale from on-premises, to edge, to cloud. Brings services to different physical locations, while leaving the operation, governance, and evolution of the services to Google Cloud. Run applications in the place that makes the most sense, using hybrid and multicloud approaches based on open-source software. Facilitates faster innovation and reduces lock-in to a single cloud provider.
Open standard -
Software with particular specifications
Accessible and usable by anyone
Guidelines for software functionality
Open source -
Source code is publicly available
Free for anyone to use, modify, and share
Created through public collaboration
iii) Collaboration Cloud
Helps transform how people connect, create, and collaborate.
People and culture are as important as technology.
Organizations have increased both location and time flexibility in work arrangements.
Information and frontline workers across regions and industries need to collaborate securely from anywhere, and on any device.
At Google, for example, we offer a collaboration cloud through Google Workspace which includes Gmail, Chat, Calendar, Drive, Docs, Sheets, and Meet.
iv) Trusted Cloud
A trusted cloud helps organizations protect what's important with advanced security tools.
The annual cost of cyber crime is expected to reach $10.5 trillion annually by 2025.
Organizations are finding ways to identify and protect everything, from people and customers to data and transactions.
Organizations want to find, analyze, resist, and remediate threats at global scale while maintaining control of their digital assets.
v) Sustainable technology
Using technology and solutions that help organizations build and work more sustainably.
Cloud computing is estimated to save 1 billion metric tons of CO2 emissions by 2024.
The largest corporations have the opportunity to lead the way in helping the world reduce its emissions and operate on carbon-free energy.
Google Cloud partners with customers to decarbonize their digital apps and infrastructure with our sustainable technology and solutions.
Google Cloud data centers are 2 times as energy-efficient as a typical enterprise data center.
Moving to Google Cloud can dramatically decrease a customer's IT-related carbon footprint.

The Google Cloud Adoption Framework
i) The Google Cloud Adoption Framework serves as a map
The value of the Google Cloud Adoption Framework is that it serves as a map to help organizations adopt the cloud quickly and effectively by creating a comprehensive action plan for accelerating cloud adoption.
It does this by structuring and aligning short-term tactical, mid-term strategic, and long-term transformational business objectives.
It provides a solid assessment of where an organization is in its cloud journey and actionable programs that get it to where it wants to be.
ii) Cloud maturity assessment
A cloud maturity assessment helps to establish where an organization is currently regarding the cloud adoption themes recognized by Google Cloud.
It can quickly reveal any areas where an organization might be weaker or underinvested. This is especially powerful if an organization was previously unaware of this lack of maturity.

Cloud adoption success stories
Let’s see how Humana uses Google Cloud to reimagine the future of healthcare. Google Cloud helps Humana analyze hundreds of calls a day from customers, patients and members. Google Cloud’s speech-to-text API turns calls into transcripts instantly and then all this data is used to find patterns and trends. That means Humana can review hundreds of calls in minutes rather than days. Together, Humana and Google Cloud are making healthcare better one day at a time.

Total cost of ownership
This analysis aims to weigh the cost of cloud adoption against the cost of running their current on-premises systems.
For on-premises, TCO is associated with assessing the cost of static resources throughout their lifetime. However due to the dynamic nature of the cloud, predicting future costs can be challenging. A common mistake that organizations make when attempting to calculate cloud TCO is to directly compare the running costs of the cloud against their on-premises system. These costs are not equivalent.
The cost of on-premises infrastructure is dominated by the initial purchase of hardware and software, but cloud computing costs are based on monthly subscriptions or pay-per-use models.
It's also important to consider all the operational costs of running your own data center, such as power, cooling, maintenance, and other support services. A data center is a building or facility that houses a large amount of IT infrastructure, computing, and storage resources in one place.

Capital expenditures versus operating expenses
i) Managing costs change when you move to the cloud.
ii) From capital expenditure to operating expenses
With organizations moving from on-premises infrastructure to on-demand cloud services, there’s a major shift in spending from capital expenditures to operating expenses.
iii) Capital expenditures (CapEx)
Capital expenditures, or CapEx, are upfront business expenses put toward fixed assets. Organizations buy these items once, and they benefit their business for many years.
iv) Operating expenses (OpEx)
operating expenses, or OpEx, are recurring costs for a more immediate benefit. This represents the day-to-day expenses to run a business.

v) Recognizing cost differences
Understanding the difference between CapEx and OpEx is helpful in recognizing how costs differ between on-premises and the public cloud.
In the on-premises CapEx model, cost management and budgeting are a one-time operational process completed annually.
Data centers require a huge CapEx investment up front as organizations purchase space, equipment, and software and hire a workforce to run and maintain everything.
vi) Capital expenditures (CapEx)
Moving to cloud’s on-demand OpEx model enables organizations to pay only for what they use and only when they use it. Budgeting is no longer a one-time operational process completed annually.
vii) Infrastructure procurement changes in the cloud
any employee can create resources in seconds on infrastructure owned and managed by a cloud provider.
Organizations save on power, cooling, and floor space; they save on management because they don’t have to install, operate, upgrade, and troubleshoot it themselves.

Private cloud, hybrid cloud, and multicloud strategies
i) Access to the latest technologies
Best-in-class approach to cloud features
Scale, security, and agility to innovate fast
Advanced capabilities
ii) Running apps on-premises
Freedom to innovate while still meeting legacy technology needs
iii) Modernize at the right pace
Migrate at a pace that makes sense
Transform technical infrastructure over time
iv) Improved return on investment
Expand cloud computing capacity without increasing data center expenses Reduce CapEx or general IT spending
Improve transparency
v) Flexibility through choice of tools
Wider choice of tools and developer talent
Better response to changing market demands
Avoid vendor lock-in concerns
vi) Improve reliability and resiliency
Distribute core workloads across multiple cloud and on-premise infrastructures
Reduce downtime
Reduce concerns about over-dependance on a single source of failure Improve quality and availability of a service
vii) Maintain regulatory compliance
Ensure compliance with regional data governance, residency, or digital sovereignty requirements
viii) Running apps at remote edge locations
Meet performance and latency requirements
Run select apps at the network edge

How a network supports digital transformation
i) The importance of a reliable network
Digital transformation has increased the importance of the network. The ability to connect customers, employees, cloud applications, and devices enables modern organizations to succeed.
With every innovation, the underlying apps and services rely on the network to communicate and connect.
ii) A reliable network supports digital transformation
A fast, reliable, and low-latency global network ensures exceptional user experience and high performance.
It also makes it easier to communicate and manage data globally.
It can also scale without needing to add hardware.
iii) How does a network operate?
Fiber-optic cables contain one or more optical fibers, which are thin strands made of glass or plastic. These fibers are used to transmit data as pulses of light over long distances.
Today, a single cable can deliver a whopping 340 Terabits per second.
iv) How is this content available within milliseconds?
Every shared video, sent email, and downloaded app depends on data traffic that moves through international network infrastructure.
A rich ecosystem of companies and local providers build a global infrastructure that provides businesses and people around the world with the best possible internet experience.
v) Internet service providers (ISPs)
ISPs provide access to the internet to both personal and business customers, handling the traffic between the customer and the internet as a whole. Some examples of ISPs include Verizon, Vodafone, Jio and Softbank etc.
vi) The Google network of fiber-optic cables
The infrastructure that makes Google’s global reach possible is our network of fiber-optic cables that run on both land and sea. This network connects our data centers and points of presence like highways connect major cities.
vii) Google owns and operates data centers
Google owns and operates data centers all over the world. In these Google data centers, products like Search, Gmail, YouTube, and Google Cloud are run for people and organizations around the world, 24 hours a day, seven days a week.
viii) Internet protocols
IP Address -
IP stands for Internet Protocol.
A series of numbers that can identify a network or the location of a particular device on a network.
Domain name -
An easy-to-remember name that maps directly to an IP address or set of IP addresses on the internet.
The unique name that appears after the @ sign in email addresses and after www. in web addresses.
The domain name example.com might translate to the IP address 198.102.434.8
Domain Name System -
A DNS server is a database of domain names mapped to IP addresses used by computers to communicate with each other.
It’s like the phone book of the web. Every time you visit a website, your computer performs a DNS lookup.
In the same way a phone book translates a name like "Acme Pizza" into the correct phone number, DNS translates a web address like www.google.com into the IP address of the computer hosting that site.

Network performance: Bandwidth and latency
i) Network performance and measurement
Bandwidth -
Bandwidth is a measure of how much data a network can transfer in a given amount of time.
It is measured in megabits per second (Mbps) or gigabits per second (Gbps). The higher bandwidth allows a computer to download information more quickly.
Having a high bandwidth is useful when sending a large amount of data per second, such as streaming high-definition video, but it’s not the only important measure of network performance.
Latency -
Latency is the amount of time it takes for data to travel from one point to another.
It is measured in milliseconds.
It describes delays in communication over a network.
Ideally, latency should be as close to zero as possible. However, because it’s a result of the physical distance that data must travel – through wires, fiber optics, routers, and more – to reach its destination, each “hop” along the way adds a small amount of latency to the communication.
The farther a user is from a server, or the more fragmented the network is, the bigger the latency.
High latency can drag down an application's performance.

Google Cloud regions and zones
i) Google’s network is one of the largest of its kind
Google Cloud’s infrastructure is based in five major geographic locations: North America, South America, Europe, Asia, and Australia.
Having multiple service locations is important because choosing where to locate applications affects qualities like availability, durability, and latency, the latter of which measures the time a packet of information takes to travel from its source to its destination.
ii) Regions and zones
Each of these locations is divided into several different regions and zones. Regions represent independent geographic areas and are composed of zones.
A zone is an area where Google Cloud resources are deployed.
Location → Regions → Zones
London → europe-west2 → europe-west2-a, europe-west2-b, europe-west2-c
iii) Zones can ensure resource redundancy
if you launch a virtual machine using Compute Engine, it will run in the zone that you specify to ensure resource redundancy.
iv) You can also run resources in different regions
You can also run resources in different regions. This is useful for bringing applications closer to users around the world and also for protection in case there are issues with an entire region, such as a natural disaster.
This is called multi-region.

Google’s edge network
i) Keeping traffic on Google’s private network
A recommended best practice for organizations is to keep their traffic on Google’s private network for most of its journey.
When a user opens a Google app or web page, Google responds to that request from an edge network location that will provide the lowest latency.
ii) Network’s edge
A network's edge is defined as the place where a device, or an organization's network, connects to the internet. It’s called the “edge” because this is the entry point to the network.
iii) Google’s edge network is how we connect with ISPs
Google’s edge network is how we connect with ISPs to get traffic to and from users. It’s made up of network infrastructure that organizations can hand off traffic to based on user needs, performance, and cost.
iv) Network infrastructure supports transformation
Google aims to deliver its services with high performance, high reliability, and low latency for users.

Cloud computing service models
i) The cloud's impact on resource management
The world of cloud computing has a diverse set of computing service models to choose from, depending on customer requirements.
In traditional IT, an organization consumes resources, such as hardware, software, and development tools, by purchasing, installing, managing, and maintaining them in its own on-premises or self-managed data center. Organizations are responsible for all of their IT infrastructure when it's completely on-premises.
In cloud computing, the cloud service provider owns, manages, and maintains the resources. The customer consumes those resources, which are provided on a subscription or pay-as-you-go basis. All you need is an internet connection. Cloud computing allows for a third party to be responsible for some part of the infrastructure. This means that organizations then have more time to focus on their core business.
ii) Cloud computing service models
Infrastructure as a service, or IaaS, which offers infrastructure resources such as compute and storage.
Platform as a service, or PaaS, which offers a develop-and-deploy environment to build cloud apps.
Software as a service, or SaaS, which delivers complete applications as services.
iii) Abstraction hides underlying infrastructure
You can visualize these cloud computing models in layers. As you move up the layers from one model to another, each model requires less knowledge and management of the underlying infrastructure. This concept is called abstraction.
Compute Engine and Cloud Storage are examples of Google Cloud IaaS products. You can create and run virtual machines with Compute Engine, and you can store any type of data with Cloud Storage. This is handle by IT engineers.
Cloud Run and BigQuery are examples of Google Cloud PaaS products.
Cloud Run is a fully managed, serverless platform for developing and hosting applications at scale, which takes care of provisioning servers and scaling app instances based on demand. BigQuery is a fully managed enterprise data warehouse that manages and analyzes data, and can be queried to answer big data questions with zero infrastructure management. This is handle by Software developers.
The suite of products that make up Google Workspace is an example of a Google Cloud SaaS product. This is use by end users.

IaaS: Infrastructure as a service
i) Features of IaaS
A) IaaS is a computing model that offers the on-demand availability of almost infinitely scalable infrastructure resources, such as compute, networking, storage, and databases as services over the internet.
B) IaaS allows organizations to lease the resources they need instead of having to buy hardware outright, and they only pay for what they use.
C) It provides the same technologies and capabilities as a traditional data center without having to physically maintain or manage all of it.
ii) IaaS transforms CapEx into OpEx
One of the main reasons businesses choose IaaS is to reduce their capital expenditures (CapEx) and transform them into operational expenses (OpEx)
iii) Comparing traditional IT to the IaaS model
In traditional Infrastructure, Organizations must purchase equipment through procurement processes that can take months. They must also invest in physical spaces, which are typically specialized rooms with power and cooling. And after deploying the systems, they need IT professionals to manage them.
In contrast, IaaS resources are offered as individual services, so organizations can choose what they need. The cloud provider manages the infrastructure, and businesses can concentrate on installing, configuring, and managing software and keeping their data secure.
iv) The benefits of IaaS

A) Economical

B) Efficient

C) Boosts productivity

D) Reliable

E) Scalable
v) IaaS use cases
The flexibility and scalability of IaaS is useful for organizations that -

A) Have unpredictable workload volumes or need to move quickly in response to business fluctuations.

B) Require more infrastructure scalability and agility than traditional data centers can provide.

C) Have high business growth that outpaces infrastructure capabilities.

D) Experience unpredictable spikes in demand for infrastructure services.

And see low utilization of existing infrastructure resources.

PaaS: Platform as a service
Platform as a Service, or PaaS, is a computing model that offers a cloud-based platform for developing, running, and managing applications. PaaS provides a framework for developers that they can build upon and use to create customized applications.
i) Features of PaaS

A) Provides a platform for developers to develop, run, and manage their own apps

B) No need to build and maintain the associated infrastructure

C) Can use built-in software components to build applications

D) Reduces the amount of code written
ii) The benefits of PaaS

A) Reduces development time

B) Scalable

C) Reduces management

D) Flexible
iii) PaaS use cases
PaaS is suitable for organizations that -

A) Want to create unique and custom applications without investing a lot in owning and managing infrastructure.

B) Want to rapidly test and deploy applications.

C) Have many legacy applications and want to reduce the cost of operations. D) Have a new app project that they want to deploy quickly by growing and updating the app as fast as possible.

E) Want to only pay for resources while they’re being used.

F) And want to offload time-consuming tasks such as setting up and maintaining application servers and development and testing environments.

SaaS: Software as a Service
Software as a service, or SaaS, is a computing model that offers an entire application, managed by a cloud provider, through a web browser.
The cloud provider hosts the application software in the cloud and delivers it through a browser.
i) Features of SaaS
A) Abstracts technology completely from the consumer

B) The end user doesn’t need to care about the underlying infrastructure
C) Organizations pay a subscription fee for access to a ready-to-use software product
D) Google Workspace is a Google Cloud SaaS product
ii) The benefits of SaaS
A) Low maintenance
B) Cost-effective
C) Flexible
iii) SaaS use cases
A) Want to use standard software solutions that require minimal customization. B) Don’t want to invest time or internal expertise in maintaining applications or infrastructure SaaS.
C) Need more time for IT teams to focus on strategic projects.
D) Need to access apps from various devices and locations.

Choosing a cloud computing model
i) IaaS - A highly flexible, scalable service, while maintaining control of infrastructure. This model offers the most control and customization, but also requires the most management responsibilities and technical expertise.
ii) PaaS - A platform designed for building software products. This provides a cost-effective way to build applications, but still requires some technical expertise and less management.
iii) SaaS - Ready to use features, without the hassle of installations. This represents the least management responsibilities and technical expertise, but also offers the least control and customization.
Compare options based on variables -
i) Scenario: IaaS
Imagine a large organization needs to implement a new inventory management system. If they had the in-house expertise to develop it and the willingness to manage the infrastructure, they could build this with IaaS resources. The organization's IT team would have complete control over server configurations, but also bear the burden of managing and maintaining them.
ii) Scenario: PaaS
Organization could choose a PaaS solution and build a custom CRM application while offloading management of infrastructure to the cloud service provider; retaining complete control over application features, but reducing the management load.
iii) Scenario: SaaS
Organization could choose to buy a ready-made SaaS solution; having no daily management of infrastructure, but also giving up all control over features and functionality in the software.
When driving, you don’t think about how the engine is operating under the hood.
Organizations must decide the level of control and management they require.
i) On-premises IT infrastructure is like owning a car. When you buy a car, you’re responsible for its usage and maintenance. Upgrading means buying a new car, which takes time and can be costly.
ii) IaaS is like leasing a car. When you lease a car, you choose a car and drive it wherever you want, but the car isn’t yours. Upgrading is easier though, as you can just lease a new car.
iii) PaaS is like taking a taxi. You provide specific directions, like the code, but the driver does the actual driving.
iv) And SaaS is like going by bus. You still get access to transport, but it's less customizable. Buses have designated routes, and you share the space with other passengers.

The shared responsibility model
i) The shared responsibility model
When an organization manages its data in its own data centers, that organization is responsible for all aspects of its security. However, as infrastructure is moved to the cloud, some aspects of the responsibility shift to the cloud provider. This concept is called the shared responsibility model.
Security in the cloud is a shared responsibility between the cloud provider and the customer. Although direct responsibilities change based on the cloud computing service model.
ii) Security of the cloud vs. security in the cloud
At Google Cloud, we defend organizations’ data against threats and fraudulent activity with the same infrastructure and security services we use for our own operations.
The cloud provider is responsible for the security of the cloud, while the customer is responsible for security in the cloud.
It's important for organizations to understand how the specific customer responsibilities vary according to the type of cloud computing model used.
Organizations must understand their roles and responsibilities in cloud security to guarantee it.
iii) Who is responsible for securing what?
A cloud provider is responsible for securing the parts of the cloud that it directly controls, such as hardware, networks, and physical security.
The customer is responsible for securing anything that they create within the cloud, such as the configurations, access policies, and user data.
iv) Ratios of responsibility
On-premises - When an organization runs its own on-premises data centers, security for the infrastructure is solely the responsibility of the organization's internal teams. They are responsible for securing servers and the data stored on them.
Infrastructure as a service (IaaS) - When an organization transitions to an IaaS computing model, it assigns some IT security responsibilities to Google Cloud. This includes being responsible for the physical resources and sharing responsibility with the customer for the security of the infrastructure and network.
Platform as a service model (PaaS) - more of the responsibility is passed over to Google Cloud. This includes full responsibility for the physical infrastructure, the access and authentication, network security, and guest operating systems. The customer is still responsible for the security of any content, such as code or data, produced on the platform.
Software as a service model (SaaS) - Google Cloud is responsible for almost every aspect of security—from the underlying infrastructure to the actual application. Customers still have some security responsibilities, such as application usage, access policies like authentication settings to prevent phishing attacks, and the user content.
v) Customers are always responsible for the security of their data
One important aspect of the shared responsibility model is that customers are always responsible for the security of their data, whether they have on-premises data centers or only pay a monthly subscription for a single user license. The customer controls who or what has access to their data.
Google Cloud is committed to keeping customers’ data secure, but security is a shared responsibility, and requires collaboration.