Could Cloud Computing Cost More?

Interoperability: A Much Needed Cloud Computing Focus

By G C Network | February 10, 2014

Cloud computing transitions information technology (IT) from being “systems of physically integrated hardware and software” to “systems of virtually integrated services”. This transition makes interoperability the difference between the success…

Managing IaaS and DBaaS Clouds with Oracle Released

By G C Network | February 6, 2014

Over the holidays I actually spent some time reviewing the newly released “Managing IaaS and DBaaS Clouds with Oracle Enterprise Manager Cloud Control 12c“. This book is a step-by-step tutorial…

Veterans 360: Helping Young Combat Veterans Succeed

By G C Network | February 5, 2014

Refusing to accept the 30 percent unemployment rate for California veterans between the ages of 18 and 24, Veterans 360 (V360) offers recently-separated combat veterans the opportunity for a solid…

Veterans 360 Paves the Way with Cloud Certification Training

By G C Network | February 3, 2014

In keeping with their mission to support young combat veterans’ transition into civilian life, Veterans 360 plans to launch a free Cloud Technology Certification training program. Vets360-Cloud will give veterans…

DBT-Data is a Force to be Reckoned With

By G C Network | January 27, 2014

DBT-Data further established itself in the data storage industry as a formidable force with the $35 million dollar purchase of the state of the art Cyber Integration Center on 1175…

2014 Federal Intelligence Summit – Washington, DC

By G C Network | January 10, 2014

DBT Data and Potomac Officers Club are excited to announce that Al Tarasiuk, CIO of the Office of the Director of National Intelligence (ODNI), will be part of an ICITE…

3rd Annual World Congress of Cloud Computing 2014

By G C Network | January 7, 2014

Today I am proud and honored to announce that I will be participating in this year’s 3rd Annual World Congress of Cloud Computing 2014! Highlighting the theme of “Chinese Dream…

NRRC Video Series – Video 8 : Raytheon R3 Decision Support Tool and Advanced Tactical System

By G C Network | December 23, 2013

In September, the NCOIC delivered the Geospatial Community Cloud (GCC) demonstration. Sponsored by the National Geospatial-Intelligence Agency, this demonstration showed how an interoperable, hybrid-cloud operating environment can be quickly enabled…

NRRC Video Series – Video 7 : Dave Boulos Demonstrates Bring-Your-Own-Device (BYOD) Management

By G C Network | December 20, 2013

In September, the NCOIC delivered the Geospatial Community Cloud (GCC) demonstration. Sponsored by the National Geospatial-Intelligence Agency, this demonstration showed how an interoperable, hybrid-cloud operating environment can be quickly enabled…

Just Pinched Myself ! Part of a “GovCloud Dream Team” !!

By G C Network | December 12, 2013

DBT-DATA provides reliable, flexible, and cost-effective data center solutions to federal, enterprise, and internet customers. With premier facilities in Ashburn, Virginia and the Cyber Integration Center in Harrisonburg, Virginia, they…

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

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