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Now taking virtualization a step further.

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You as a small, medium business don't have the buying capacity of a huge company such as Walmart or

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Target.

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Large companies spending large amounts of money can negotiate prices that small, medium businesses

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cannot.

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And that's not only true for retailing, it's also true for servers.

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Companies such as Amazon, Microsoft and Google can buy hardware a lot cheaper than small, medium businesses

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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

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in preparation for the demand that they would have for sales at Amazon.com that they started selling

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time on their 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.

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We also have Microsoft Azure as well as Google Cloud.

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But all of these work on a similar premise 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.

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You can actually run it for free on Amazon today, or you can run it at such a low price that it makes

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more sense to run your infrastructure in the cloud rather than trying to buy hardware and maintain that

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hardware.

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If you're buying servers, you need to provide power, cooling and other resources to maintain those

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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 CPUs and disk space that it makes more sense

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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 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.

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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

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using.

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You don't have to try and buy physical servers, get them shipped, physically, install them, rack

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them, power them and so forth.

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You can on the fly use the resources available in the cloud.

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So in this example, I'll 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.

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One, two, three.

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I can decide which operating system I want to use.

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So as an example, I'll select Ubuntu.

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Click next.

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I'm going to go for a PT to micro server.

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So I can see the amount of CPU, RAM and storage that the server has.

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Notice this is going to run free.

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Click next.

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I need to download a key page to access that server.

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But notice I can not create the instance, and it's as simple as that for me to create a server and

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then I can connect to that server remotely and manage it.

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Notice I didn't have to purchase any hardware.

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I didn't have to wait for the hardware to be shipped.

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I didn't have to rack the server.

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I didn't have to power up the server.

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I didn't have to configure a network.

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I didn't have to configure storage.

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I didn't have to install an operating system.

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I didn't have to install 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.

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The virtual machine on Amazon.

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So notice in this example, I've got a 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.

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I can power them up.

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So as an example here I've got a USA one live labs dot com.

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So this server USA one Live Labs three is actually running on an Amazon server.

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I'm now told that to my test 1 to 3 server is completed and in a moment I'll be able to connect to that

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server.

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But in this example, I had my live labs server previously configured and as an example.

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I could log in 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.

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But I'm actually connecting to this physical switch.

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Via my Amazon virtual machine running in the USA.

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Rather than me trying to set up a physical server like I did here, and I would have to install the

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physical server, powered up and so forth.

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Then I would install the host operating system, which in this case is ESXi, and then I have to install

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my guest operating system and install the applications on that.

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I can simply spin up a server on Amazon 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, 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 Midwest of the USA.

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I'm in the UK, but I can simply connect to it like I would connect 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.