Capacity planning in a cloud environment

“Cloud Musings” Named A “Top 50 Blog”

By G C Network | August 27, 2010

My appreciation and thanks goes out to Jeremy Geelan for including “Cloud Musings” on his list of the Top 50 Cloud Computing Blogs. Thanks is also in order for “HighTechDad”…

Will Oracle Buy Informatica?

By G C Network | August 25, 2010

According to 1,250 ERP Software Advice readers that will be Oracle’s next acquisition. Terradata came in a close second in this race, suggesting that Oracle will “…play it safe next time…

What’s Next For Oracle?

By G C Network | August 14, 2010

Watching Larry Ellison and Oracle over the years as it has morphed itself is a real study in market dynamics.  It’s transformation from database company through middleware provider to now…

Enterprise Architecture Enables Innovation: Melvin Greer, Lockheed Martin

By G C Network | August 11, 2010

Earlier this week, my good fried and NCOIC colleage, Melvin Greer was interviewed by Rutrell Yasin of Government Computer News. In the interview, Mel focused on the importantance of entrprise…

Are You A Cloud Architect? NJVC Needs YOU!!

By G C Network | July 31, 2010

If you are a cloud computing architect, have I got news for you!  NJVC, one of the largest IT solutions providers supporting the U.S. Department of Defense (DoD), is building…

“Army Private Cloud” RFP Released

By G C Network | July 28, 2010

Last week the US Army released  a procurement solicitation for the Army Private Cloud.  This $249M solicitation calls for a 1-year base period with four, 1-year options. Department of the…

Cloud Musings Direct Launches

By G C Network | July 15, 2010

In response to request, the inaugural “Cloud Musings Direct” newsletter was launched this week.  This bi-weekly electronic newsletter will highlight important government cloud computing industry trends and events.  If you…

CloudExpo Europe 2010: Not Your Father’s Prague

By G C Network | June 30, 2010

When my good friend Jeremy Geelan invited me to speak at CloudExpo Europe in Prague, Czech Republic my imagination went into overdrive.  Being a child of the 60’s and a…

NCOIC Plenary Highlights Collaboration and Interoperability

By G C Network | June 29, 2010

Last week in Brussels, Belgium, the Network Centric Operations Industry Consortium highlighted it’s support of collaboration and interoperability through an information exchange session with the National Geospatial-Intelligence Agency (NGA) and…

GovLoop “Member of the Week”

By G C Network | June 22, 2010

Thank you to Radiah Givens-Nunez and GovLoop for the honor of being their Member of the Week for June 21-25, 2010. Created in 2008, GovLoop is an online social network…

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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