Could Cloud Computing Cost More?

GovCloud Founder and Veteran’s 360 Showcased in US Veteran’s Magazine

By G C Network | June 13, 2014

Kevin L. Jackson, CEO and Founder of GovCloud Network, LLC, was showcased in US Veteran’s Magazine for his work with Veteran’s 360, a San Diego, California non-profit. With more than…

Cloud Environment Can Enable Fast, Secure Collaboration among Industries, Nations

By G C Network | June 4, 2014

NCOIC’s Kevin Jackson to present new process for creating interoperability via a cyber-secure multi-cloud environment at cloud computing conferences in the U.S. and China WASHINGTON—June 4, 2014—Cyber-secure cloud computing can…

The Federal Government Journey to Cloud Computing: Lessons Learned

By G C Network | June 3, 2014

[Republished from”On The FrontLines” magazine “Cloud Computing in Government: Lesson’s Learned” issue. Download the full 20 page issue online at https://digital.onthefrontlines.net/i/319551 ) In February 2011, Vivek Kundra announced the “Cloud…

Cloud Computing In Government Lesson’s Learned From On The FrontLines Magazine

By G C Network | May 29, 2014

Congratulations to my friends at “On The FrontLines Magazine” for an EXCELLENT presentation of important operational and managerial cloud computing transition lessons. This issues showcases cloud computing leaders from government…

From “Boots on the Ground” To “Heads in the Cloud,” Non-Profit aims to offer Cloud Training & business services to Corporate IT and HR teams.

By G C Network | May 28, 2014

From “military dedication” to “civilian success,”Veterans 360 Services is approaching the challenging transition of military service to civilian life with an innovative, focused and all-inclusive, 360 degree, process of education…

ICH Agile Cloud Consortium Completes Successful Event

By G C Network | May 22, 2014

Thank you to all that participated in yesterday’s ICH Agile Cloud Service Catalog event.    ICH Agile Cloud is an industry-wide effort targeted at developing an open and inclusive cloud service…

ICH Releases Agenda for Agile Cloud Service Catalog Session

By G C Network | May 20, 2014

The Agile Cloud consortium’s second event will occur on May 21, 2014 at TIA Headquarters in Arlington, VA. This event will focus on development of the Agile Cloud Environment Service…

PDNS Offers “Anchor” Cloud Services to Agile Cloud Consortium

By G C Network | May 14, 2014

Private Digital Network Services (PDNS) and partners will provide its national, Private Digital Network (PDN) core and a suite of highly sought after services to the Interoperability Clearinghouse Agile Cloud effort. Its…

ICH/ITAAC Announces Second Agile Cloud Environment Event

By G C Network | May 7, 2014

The 2nd Agile Cloud Environment event will be held on May 21, 2014 at TIA Headquarters. This event will focus on development of the Agile Cloud Environment Service Catalog. The…

Interoperability Clearinghouse Launches “Agile Cloud” Collaboration

By G C Network | April 28, 2014

Last Wednesday, Maj Gen, USAF (Ret) John T. Brennan, Interoperability Clearinghouse (ICH) Executive Director, kicked off the Agile Cloud collaboration. This industry-wide effort is targeted at developing an open and…

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