Capacity planning in a cloud environment

The Endpoint Imperative: Global Security Compliance. Are you ready?

By G C Network | November 12, 2017

    China has its Cybersecurity Law. Next May, the General Data Protection Regulation – or GDPR –goes into effect for the European Union. Research shows most organizations just aren’t…

The Endpoint Imperative: IT Spending: Setting Priorities in a Volatile World

By G C Network | November 5, 2017

  Fast-evolving trends are changing the way IT thinks about security. To stay secure and productive, IT operations must excel at the fundamentals: PC refreshes for security, and optimizing end-user…

Top 1000 Tech Bloggers

By G C Network | October 24, 2017

The Rise “Top 1000 Tech Bloggers” leaderboard recognizes the most inspiring Tech journalists and bloggers active on social media. They use Klout scores (50%) and the blogger’s twitter conversations on…

IBM – The Power of Cloud Brokerage

By G C Network | October 14, 2017

Hybrid cloud adoption is now mainstream and you are making decisions every day about how to transform application and infrastructure architectures, service delivery, DevOps, production operations and governance. With Cloud…

More SMB Love Needed

By G C Network | September 29, 2017

    In a recent post, titled “10 Surprising Facts About Cloud Computing and What It Really Is”, Zac Johnson highlighted some interesting facts about cloud computing in the SMB…

ATMs Are IT Too!

By G C Network | September 5, 2017

That world of homogenous IT technology managed entirely by the internal IT organization has long disappeared.  Operations today require efficient and global management of technologically heterogeneous environments. The challenges and…

Digital Transformation Asset Management

By G C Network | August 30, 2017

Today’s businesses run in the virtual world. From virtual machines to chatbots to Bitcoin, physical has become last century’s modus operandi.  Dealing with this type of change in business even…

The Game of Clouds 2017

By G C Network | July 30, 2017

The AWS Marketplace is growing at breakneck speed, with 40% more listings than last year! This and more insights were revealed when CloudEndure used their custom tool to quickly scan the…

Managing Your Hybrid Cloud

By G C Network | July 14, 2017

Photo credit: Shutterstock   Runaway cloud computing cost may be causing an information technology industry crisis.  Expanding requirements, extended transition schedules and misleading marketplace hype have made “Transformation” a dirty word. …

American Airlines Adopts Public Cloud Computing

By G C Network | June 30, 2017

Did you know that the reservations systems of the biggest carriers mostly run on a specialized IBM operating system known as Transaction Processing Facility (TPF). Designed by IBM in the…

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 !!

Follow me at https://Twitter.com/Kevin_Jackson

G C Network