Could Cloud Computing Cost More?

April 16, 2009 / G C Network /

Convergence: The Catalyst to Transform Scientific Research

By G C Network | January 7, 2015

by Melvin Greer  Greer Institute for Leadership and Innovation A new transformative research approach is gaining global attention and adoption. The scientific opportunities enabled by convergence—the coming together of insights…

Cloud Computing Promises: Fact or Fiction

By G C Network | December 29, 2014

Cloud computing is currently making information technology headlines, and vendors are aggressively promoting the many benefits it can provide organizations. This White Paper addresses the claims and questions that are…

Super Smart Person’s Guide to Cloud Computing – San Diego

By G C Network | December 24, 2014

We are offering a fun and educational event just about the cloud. This session will help CEOs, Directors, Managers, and Dilberts learn what the heck the cloud is all about.…

A Managed Services Business Owners Lament: A talk with Joe D.

By G C Network | December 22, 2014

 by Kevin L. Jackson A few days ago I received a call from a small business owner asking if I would meet him for coffee.  He wanted to run some…

Technology and the Evolving Workforce

By G C Network | December 17, 2014

by Melvin Greer Managing Director Greer Institute for Leadership and Innovation According to a Greer Institute Workforce and Talent study, the 2020 workforce is both “the most educated and culturally…

Security attacks and countermeasures

By G C Network | December 14, 2014

by Sandra K. Johnson   Cyber security is rapidly becoming a significant issue in the C-suite as well as the population at large. The results of Dell’s Global Technology Adoption…

ITIL in 7 Minutes!

By G C Network | December 9, 2014

What is ITIL & how can it benefit your organization? Learn the answers to these questions plus gain an understanding of the ITIL Service Lifecycle in this video.  Download a…

How Resilient are FedRAMP Clouds Anyway?

By G C Network | December 8, 2014

By Jodi Kohut For the uninitiated, FedRAMP is the Federal Risk Authorizationand Management Program, a government-wide program that provides a standardized approach to security assessment, authorization, and continuous monitoring for…

Federal Tech Talk: Cloud Transition Challenges in Government and Industry

By G C Network | December 2, 2014

Cloud Computing is revolutionizing today’s business marketplace. While “learning the art of the possible”, corporate executives today are struggling with the business and security challenges associate with this important transition. Just…

Cloud, Mobile, Social and Cyber: 2015 Predictions That Will Rock The World (AGAIN!)

By G C Network | December 1, 2014

2015 PREDICTION TIME!! The worlds of cloud, mobile, social and cyber will continue expanding, permuting and recombining. Their individual effect on society and commerce will become moot as these technological…

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.

Follow me at https://Twitter.com/Kevin_Jackson
Posted in , , , , , , , , ,

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



Cloud Computing

Cybersecurity