A classic use of ROI or its twin TCO is in the Microsoft Economics of the
Cloud, Nov 2010 paper. The conclusion is you can improve TCO by up to 80% by
using applications in public cloud versus on-premise deployment. The basics
of the calculation being:
improved utilization (10% to 90%) enabled by virtualization/consolidation &
elasticity the economies (power, operations, HW purchase etc..) of scale of
multi-tenant cloud scale hosting
Given most costs in a DC are directly linked to the amount of infrastructure
deployed, then improving utilization from 10% to 90% sounds like the primary
justification for the 80% improvement. The misuse of the information is not
more evident that when Phil Wainewright writes that the strength of this
"research" is enough to put the nail in the coffin of the concept of private
cloud. Definitive words indeed.. The problem I have with this... (more)
The public cloud market is dominated by a 800 pound gorilla. We assume its
800 pounds and not 2000 pounds. It could even be 100 pounds or maybe not a
gorilla, but an elephant of a paler color. There is no public information
indicating its true size, revenue or performance. Let’s assume based on the
marketing information it's 800 pounds and a gorilla.
The recent release of the dedicated instance feature within Amazon Web
Services has shone a spotlight on a possible future of public cloud. A
proof point that cloud and the traditional hosting model might exist on the
same continuum... (more)
Looking forward to the Redhat Summit this week in Boston with a theme of
“Platform, Middleware, Virtualization, Cloud”. The cloud market is
dominated by a lot of startups, with some goliath-size companies still
waiting in the wings. Depending your point of view, they are either lumbering
dinosaurs unaware of the next evolutionary shift, or if you are like me, I
think they are poised to strike. If you believe enterprise adoption is the
next wave of cloud adoption, then these organizations have huge salesforces
with deep customer relationships and services organizations capable of ... (more)
This story has moved to http://hareshparekh.ulitzer.com/node/1772591
... (more)
There is a common question that almost universally arises when people discuss
cloud computing. The question came up in a webinar I did with Rackspace last
week. It was featured in regular conversation at Cloud Connect and then again
on Twitter from Adrian Cockcroft. The question was framed like;
"There is no technical reason for private cloud, it's all $, FUD, and
internal politics. Discuss." - Adrian Cockcroft, Do you think there is a need
for private clouds (vs. public)?
Important to note we are not talking whether they should run on a cloud. This
argument only applies to applic... (more)