Could Cloud Computing Cost More?

EITAGlobal and Cloud Expert Kevin L. Jackson Team To Deliver Business Focused Cloud Computing Training

By G C Network | December 9, 2013

Today I am announcing my partnership with EITAGlobal to produce and deliver a series of business focused training webinars on cloud computing. Headquartered in Fremont, California, EITAGlobal is a continuing professional…

NRRC Video Series – Video 6 : Telos Demonstrates Cloud-based Communications System

By G C Network | December 8, 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 5 : Boeing Ozone Dashboards for Emergency Management

By G C Network | December 7, 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…

Proud To Be Joining Veterans 360 and Cloud for Vets!

By G C Network | December 5, 2013

Today I’m proud and honored to announce my appointment to the Board of Advisors for Veterans 360. Their mission is to provide young, recently-separated combat veterans with a program of…

Take Charge, Lead Change, Do Cloud Right!

By G C Network | December 4, 2013

The theme for next week’s Gartner Data Center conference, “Taking Charge, Leading Change — Your I&O Transformation Can’t Wait”, is a real wake up call for today’s I&O leaders. Gartner’s…

Cloud Computing at the Potomac Officer’s Club

By G C Network | November 27, 2013

Across the Federal IT landscape, terms like “cloud”, “cloud computing” and Software as a service (SaaS) are at the center of a seismic shift by the agencies away from building…

NRRC Video Series – Video 2 : Building the Cloud Infrastructure

By G C Network | November 26, 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 1 : Introduction and Overview

By G C Network | November 25, 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…

NCOIC To Rollout Open Process for Creating Secure, Hybrid IT Computing Environments

By G C Network | November 20, 2013

Network Centric Operations Industry Consortium to offer capability to organizations that seek to combine traditional and cloud infrastructures for greater efficiency and mission success WASHINGTON-November 19, 2013-Next month, the Network…

So what kind of consultant are you?

By G C Network | November 15, 2013

Yesterday over lunch, a good friend of mine from the Limelight Marketing Group and I started talking about my recent transition. As you can imagine being in the DC metro…

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