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Transformation Network
The Achilles heel of every transformative business model is their reliance on ever increasing amounts of data that need to be transported quickly across wide area networks and processed at…
Essential Characteristics of Cloud Computing as Digital Transformation
Hybrid IT blends traditional datacenters, managed service providers, and cloud service providers to deliver the necessary mix of information technology services. This IT consumption model enables a composable infrastructure which…
Transformation Innovation
4 Factors Driving Digital Transformation ROI The critical assessment factors for cloud ROI risk probability are the following: Infrastructure utilization Speed of migration to cloud Ability to scale business/mission processes…
Transformation Frameworks
Digital transformation necessitates changes in an organization’s operational processes. According to Harvard, a focus on operations can lead to business process optimization and entirely new revenue streams. Three common routes…
Transformation Infrastructure
Hybrid IT enables a composable infrastructure which describes a framework whose physical compute, storage, and network fabric resources are treated as services. Resources are logically pooled so that administrators need…
Essential Characteristics of Cloud Computing as Digital Transformation
A survey of 2,000 executives conducted by Cognizant in 2016 identified the top five ways digital transformations generate value: Accelerating speed to market Strengthening competitive positioning Boosting revenue growth Raising…
Embrace Transformation
From a business perspective, differentiating business processes and quality customer service are central to overall success. Business leaders must therefore clearly identify and measure how information technology contributes to the…
Computer Vision Advances Zero-Defect Manufacturing
by Kevin L. Jackson Electronics manufacturers operate in a challenging environment. It’s hard enough to keep up with the ever-accelerating rate of change in the industry. Now customers want increasingly…
Real-Time Analytics Power the Roadway of the Future
By Kevin L. Jackson The complexities of citywide traffic are pushing the limits of existing transportation management systems. Outdated infrastructure is based on proprietary, single-purpose subsystems, making it costly to…
Thriving on the Edge: Developing CSP Edge Computing Strategy
Communications Service Providers (CSPs) are facing significant business model challenges. Referred to generally as edge computing, the possibilities introduced by the blending of 5G networks and distributed cloud computing technologies are…
In a recent conference, analyst William Forrest says that large companies could end up paying more than twice as much by using cloud based services. According to a Forbes.com report, Deflating The Cloud, a study focused on a McKinsey & Co. financial services client showed that the financial firm would be paying 150% more for cloud-based services versus owning the infrastructure.
“Much of cloud computing’s misplaced hype, contends Forrest, comes from the assumption that businesses that make the switch will be able to do away with their entire IT department, an expensive collection of personnel. But in his analysis of McKinsey’s financial services client, Forrest found that only around 15% of the company’s 1,700 or so IT employees had hands-on access to hardware and software–most worked in support or other administrative areas. That means moving to Amazon’s service would only cut about 200 full-time workers, hardly the savings chief information officers might imagine.”
Others, including Amy Wohl leading analyst at Wohl Associates, disagree arguing that Forrest’s analysis leaves out the value of avoiding large capital outlays and ignores the flexibility inherent in cloud computing.
This is actually a good debate. The economic value of cloud computing needs to be studied carefully. Cloud computing is not the answer to all IT ills and if this market is to be successful, both the pros and cons must be well understood.
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Cloud Computing
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We have to get away from the hype (and single company data samples!). Not all companies or applications should move over to the cloud. If you’re delivering more value, you should be charging more. Let’s keep the discussion rational and objective. See more on this discussion as it relates to a particular vertical – electronic design: http://tinyurl.com/cxfmuu