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Cloud Computing
Impact on Business
Cloud Computing - Baseline
What? Pooling of Elastic Computing infrastructure with the intent of achieving
economies of scale and optimum utilization via on-demand provisioning.
Why? Underutilization, redundancy, opportunity cost, overheads,
heterogeneity, spiky and distributed workloads
How? • Infrastructure-as-a-Service (Compute, Storage, Database, Network, Bandwidth)
• Platform-as-a-Service (OS, Services, Messaging, Events to build custom apps)
• Software-as-a-Service (Multi-tenant Software Application, Configurable)
• Public Cloud (Amazon, Rackspace, Telcos )
• Private Cloud
• Community, Industry and Hybrid Clouds
Economic Value
Cost Model
• CAPEX v OPEX
• Chargebacks
• Depreciation
• Reallocate Budget
• Ramp Costs with usage
• Sunk cost of existing
infrastructure investments
Agility
• No IT logjam
• Quick Project Ramp
• Use-and-Dispose
• New Businesses Models
• Reallocate Resources
• Capacity to handle varying
workloads
New Realities
• Standard Boilerplate Agreements unlike highly negotiated ones in the past
• FUD created by entrenched vendors with vested interests about losing control and cloud outage
• New set of Cloud Integrators to evaluate. • New set of tools to manage clouds • IT Audit process need to accommodate Cloud
After saying all those nice things …
• It is definitely not cheap over long term
• Factor Redundancy
• Early Stage vendors might go away
• Lack of Security standardization
• Complex Regulatory compliance
• Force Majeure
• Data Replication/Retention
• M&A in Cloud Vendors