Could Cloud Computing Cost More?

NJVC Platform as a Service to Include Google Geospatial Services for NCOIC Geospatial Community Cloud Project in Support of Disaster Relief Efforts

By G C Network | July 9, 2013

CHANTILLY, Va., July 9, 2013 — NJVC® was selected by Network Centric Operations Industry Consortium (NCOIC) to provide the platform as a service (PaaS) element of a cloud-computing-based humanitarian assistance…

Fathers of Clouds – A Tribute

By G C Network | June 14, 2013

(A guest post from Mr. Ray Holloman, NJVC Digital Communications Manager ) For more than half a century, cloud computing has changed names more often than a Hollywood starlet. Utility…

CNBC Closing Bell: Bob Gourley on NSA Leaker

By G C Network | June 13, 2013

This is clearly off topic, but I couldn’t help myself!  Please take a moment to view this CNBC video where my good friend Bob Gourley addresses this important event. Good…

Guest Blog: Sequestration and the Cloud

By G C Network | May 30, 2013

(This post was provided by Praveen Asthana, Chief Marketing Office of Gravitant, a cloud service brokerage and management company) Sequestration burst out of obscurity and entered our household vocabulary in…

Join Me at the Gartner IT Infrastructure & Operations Management Summit

By G C Network | May 22, 2013

Please  join me at the Gartner IT Infrastructure & Operations Management Summit in Orlando, Florida, June 18-20, 2013, where my session topic will be “Cloud Service Integration: Increasing Business Value…

Five Years of Cloud Musings!!

By G C Network | May 14, 2013

https://kevinljackson.blogspot.com/2008/05/hello-world-april-18-2008.html  “Sunday, April 18, 2008 Hello World ! – April 18, 2008 I’ve been toying with the idea of doing a blog for about six months now. Initially I didn’t…

Global Interoperability Consortium’s Cloud Computing Project Detailed at NATO Conference

By G C Network | April 30, 2013

PRESS RELEASEApril 30, 2013, 2:30 p.m. ET Eric Vollmecke of the Network Centric Operations Industry Consortium reports  the proliferation of geospatial information will pose problems for disaster  responders and describes…

IBM Debate Series – What’s Next in IT?

By G C Network | April 25, 2013

Next week I will be participating in the inaugural session of What’s Next in IT Debate Series, a  new program of authentic debates and conversations on key technology topics. Sponsored…

Lisbon Bound: NATO Network Enabled Capability Conference 2013

By G C Network | April 21, 2013

This week I will have the honor of attending the 2013 NNEC Conference  at the Corinthia Hotel in Lisbon, Portugal. The NNEC conference is an annual event which has been sponsored by HQ…

Demystifying PaaS for Federal Government

By G C Network | April 2, 2013

Join us on April 16, 2013 at 1 PM EDT to remove the mystery surrounding Platform-as-a-Service (PaaS) for Federal Government https://attendee.gotowebinar.com/register/8966264786104832512 The PaaS market is plagued with confusion, and agencies…

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