Could Cloud Computing Cost More?

Cloud Services Brokerage: Adding Trust and Oversight to Complex Cloud Deals

By G C Network | September 15, 2014

According to the Gartner IT Glossary, “Cloud services brokerage (CSB) is an IT role and business model in which a company or other entity adds value to one or more…

Learn Hadoop and Big Data in 7 Minute Flat!

By G C Network | September 13, 2014

How do I install Hadoop, and on what platforms? What are the differences between versions of Hadoop? How do I Extract, Transform and Load in Hadoop? The answers to these…

Tech Equity & GovCloud Network Team For Cloud Education

By G C Network | August 25, 2014

GovCloud Network is proud to announce that we have teamed with Tech Equity Ltd to deliver cloud education and training on a global basis. With this partnership, GovCloud Network will…

National Cybersecurity = Cloud Computing Security

By G C Network | August 13, 2014

A recent article Inc.com article claimed that the percentage of U.S. small businesses using cloud computing is expected to more than double during the next six years, from 37 percent…

Vets 360 Sponsoring Service Members To Attend Gartner Catalyst Conference

By G C Network | August 5, 2014

Veterans 360 will be attending the Gartner Catalyst Conference. They are also sponsoring the attendance of active duty service members that are currently in the US military and serving in…

ERPGovCloud: Your Path to DCAA Compliance

By G C Network | July 28, 2014

So you won your first Government Contract… Congratulations!  Among the new issues you will need to consider, your accounting systems, both practices and technology, will need to pass muster with…

GovCloud Media Network Feature: Army IT Playlist

By G C Network | July 17, 2014

The GovCloud Media Network features agency specific video playlist for registered members. Please enjoy this feature on the Army IT. Please visit the new GovCloud Network Media Library for more…

Security & Defense People Launches – Use “GovCloud” for 50% Discount

By G C Network | June 28, 2014

This is quite an unusual post for me but I would like to congratulate GovCloud Network partner SDP Networks on their launch of the Security & Defense People website! Security…

The Cloud Credential Council releases Executive FedRAMP certification course with leading government cloud expert Kevin L. Jackson.

By G C Network | June 23, 2014

Palo Alto, USA – June 23rd, 2014 – Addressing the global cloud skills gap is the number one priority to help accelerate the successful adoption of Cloud, according to the Cloud…

Learning Tree’s Expert Cloud Instructor Kevin Jackson Announces Multiple Speaking Engagements

By G C Network | June 22, 2014

(Reposted from LearningTree’s “Perspectives on Cloud Computing” at https://cloud-computing.learningtree.com/2014/06/12/expert-learning-tree-cloud-instructor-kevin-jackson-announces-multiple-speaking-engagements ) Kevin Jackson, a certified Learning Tree cloud computing instructor and Learning Tree Cloud Computing Curriculum Initiative Manager, is set to…

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