Could Cloud Computing Cost More?

Getting Your Network in the Cloud

By G C Network | May 25, 2016

Join us with Virtual Newsmakers on Saturday, May 28th at 11:00am for a YouTube Livestream on cloud computing. Virtual Newsmakers is a webcast show featuring virtual newsmakers, who are bridging…

Enterprise Networking in a Cloud World

By G C Network | May 17, 2016

Enterprises must rethink network management in the cloud computing world. This new reality is driven by the rise of software defined networking, the virtualization of everything and a business imperative…

The Game of Clouds 2016

By G C Network | May 13, 2016

In the mythical, medieval land of AWS, a civil war brews between the several noble Cloud Services over rulership. Meanwhile, across the sea, the former controlling dynasty, Traditional IT, attempts…

10 Ways to Flash Forward

By G C Network | May 7, 2016

Not to long ago I was honored to be included as a storage expert in the Dell ebook, “10 Ways to Flash Forward: Future-Ready Storage Insights from the Experts.” This…

The Future of Storage

By G C Network | April 28, 2016

A few weeks ago I had the pleasure of doing a Blab on advanced storage with Daniel Newman and Eric Vanderburg.  We covered some pretty interesting points on enterprise storage…

DevOps and Hybrid Infrastructure Synergy

By G C Network | April 3, 2016

(This post first appeared in IBM’s Point B and Beyond) The definition of DevOps emphasizes collaboration and communication between software developers and other IT professionals while automating the software delivery…

Are electronic medical records worth it?

By G C Network | March 23, 2016

The use of Electronic Medical Records (EMR) by medical professionals has increased dramatically. According to HealthIT.gov, 2015 statistics show that 56 percent of all U.S. office-based physicians (MD/DO) have demonstrated meaningful use…

Finding a Framework for Hybrid Cloud Risk Management

By G C Network | March 6, 2016

 (Sponsored by IBM. Originally published on Point B and Beyond) Hybrid cloud is rapidly becoming essential to today’s information technology processes. This is why hybrid cloud risk management has become…

Cancer, cloud and privacy shield

By G C Network | February 23, 2016

(Originally published in Dell PowerMore) For more than 10 years, the rapid rise of cloud computing has enabled an even more rapid application of cloud to genomic medicine. In fact,…

Hybrid Cloud Versus Hybrid IT: What’s the Hype?

By G C Network | February 3, 2016

(Originally posted on Point B and Beyond) Once again, the boardroom is in a bitter battle over what edict its members will now levy on their hapless IT organization. On…

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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G C Network

1 Comments

  1. James Colgan on April 17, 2009 at 8:48 pm

    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