Capacity planning in a cloud environment

US Army Cloud Computing Class at Ft. Gordon, GA

By G C Network | June 24, 2011

A few weeks ago I had the distinct pleassue of teaching yet another US Army cloud computing class.  This time the venue was Ft. Gordon, GA and the students definitely…

78 Agency Services Identified for Cloud Transition

By G C Network | May 29, 2011

The Office of Management and Budget recently released a list of 78 projects slated for transition to cloud over the next year. The most common application, according to a FierceGovernmentIT,…

NGA Sets GEOINT Strategic Direction with Earth Builder

By G C Network | May 15, 2011

Last month Google and the National Geospatial Intelligence Agency started sharing details about their “GEOINT on Demand” collaboration. The project, named Earth Builder, was built specifically to enable NGA to…

Teleology Systems Introduces CloudeFX at DoDIIS

By G C Network | April 27, 2011

Next week at DoDIIS, NJVC will be showcasing a few of our government cloud computing partners. One of the most exciting of these is the Cloud Service Orchestration Framework by…

Cloud Computing Highlighted at DoDIIS 2011

By G C Network | April 27, 2011

Are you going to DoDIIS? Schedule for May 1-5, 2011 in Detroit, Michigan, the conference highlights the Defense Intelligence Agency’s (DIA) commitment to developing and maintaining secure and reliable networks for…

Washington DC a Cloud Computing Trendsetter!

By G C Network | April 16, 2011

A TechJournal South article last week named Washington, DC as a leading trendsetter in cloud computing. Citing a Microsoft sponsored survey, conducted by 7th Sense research, D.C. was highlighted as particullarly receptive…

Melvin Greer Cited by IBM for Cloud Computing Innovation

By G C Network | April 5, 2011

Congratulations to my good friend Melvin Greer for being awarded IBM’s first ever ACE Award!! “Melvin Greer, Lockheed Martin Senior Fellow has won IBM’s first ever Awarding Customer Excellence (ACE)…

“GovCloud: The Book” Launched at National Press Club Event

By G C Network | March 30, 2011

As many of you know, today marked the official launch of my first book – GovCloud: Cloud Computing for the Business of Government. Today’s venue was the National Press Club…

“Cloud Musings on Forbes” Launched!!

By G C Network | March 24, 2011

Today I published my first post on Forbes.com!! At the invitation of Bruce Upbin, Forbes.com editor, I will be contributing posts monthly. I see this not only as an honor,…

Tech America and INSA Form Cloud Computing Advisory Groups

By G C Network | March 6, 2011

Last week TechAmerica announced the formation of a “cloud computing commission” to advise the White House on the current plans to steer more than $20B worth of IT services toward…

In her post “Cloud computing killed the capacity star“, Ivanka Menken brings up some good points. Just think what changes this could bring to the government budgeting process. The trends that Ivanka addresses could result in the following:

  • Traditionally, demand management is used as an input into a capacity plan that is then used for capital expenditure budgeting. In the new world, this will no longer be sufficient, because the ability to rent capacity on “pay as you go” basis will now be a much more important input into the operational side of the budget.
  • In economically unstable times (such as today) the focus is on low fixed cost. The accompanying budget strategy is to purchase infrastructure with excess capacity and sit on it for as long as possible. While this may not be the lowest initial cost approach, it does minimize the risk of mission failure over the longer term. In the new budget world, agencies can purchase the minimum infrastructure needed to meet current steady state requirements. This would typically result in an IT platform with minimal excess capacity. If more is needed later, one would use operational funds for cloud based services. This new strategy would conceivably result in lower initial cost and lower lifecycle cost as well.
  • With IT services as a utility, budgeting for it will become more akin to budgeting for office electricity. Do agencies do a annual capacity plan for electricity? No. A flat rate is set based on another related factor ( number of employees, number of offices, etc). This approach could actually result in absolutely zero capital budget for IT !!

What do you bean counters think about that !!

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