Could Cloud Computing Cost More?

NJVC to Spotlight Cloudcuity at Gartner Data Center Conference

By G C Network | November 15, 2012

Las Vegas., Nov. 15, 2012 — NJVC, an information technology solutions provider headquartered in Northern Virginia, announces it will spotlight its Cloudcuity™ framework for delivering secure and unified cloud management…

NJVC Cloud Expert Kevin L. Jackson Launches Second Book: GovCloud II: Implementation and Cloud Brokerage Services

By G C Network | November 9, 2012

VIENNA, Va., Nov. 8, 2012—NJVC, an information technology (IT) solutions provider headquartered in northern Virginia, is pleased to announce that Kevin L. Jackson, vice president and general manager, cloud services,…

Virtustream a Visionary in Gartner 2012 IaaS Magic Quadrant

By G C Network | October 27, 2012

Congratulations to NJVC Cloudcuity partner Virtustream for being positioned as a visionary in the Gartner 2012 IaaS Magic Quadrant! Magic Quadrants provide a graphical competitive positioning of four types of…

GovCloud II: Implementation and Cloud Brokerage Services Now Available

By G C Network | October 22, 2012

I’m happy and proud to announce the release of my second book, “GovCloud II: Implementation and Cloud Brokerage Services” by my publisher Government Training Inc.   The public and private…

NJVC® Introduces Cloudcuity™ AppDeployer to Create and Sell Software Applications

By G C Network | October 18, 2012

Developers Can Create, Deploy and Publish Apps in the Cloud for Free Vienna, Va., Oct. 18, 2012 — NJVC®, an information technology (IT) solutions provider headquartered in Northern Virginia, introduces…

NJVC® Announces the Cloudcuity™ Government Marketplace, Powered by Virtustream’s Secure Cloud xChange

By G C Network | October 4, 2012

Vienna, Va., Oct. 4, 2012—NJVC®, an information technology solutions provider headquartered in Northern Virginia, and Virtustream, Inc., a leading enterprise cloud software company, today announced a new alliance to provide…

Cloudcuity™: Thought Leadership Translated to Operational Excellence

By G C Network | September 26, 2012

As my long time readers have certainly noticed, the frequency of my posts have lengthened over the past few months. First, I would like to offer my apologies for being…

NJVC® Unveils Cloudcuity™ Umbrella Framework for NJVC Cloud Services

By G C Network | September 13, 2012

Vienna, Va., Sept. 13, 2012 — NJVC®, an information technology (IT) solutions provider headquartered in Northern Virginia, introduces Cloudcuity™, a new framework for the company’s cloud service offerings to help…

NJVC® Announces SaaS Accelerate: Specialized Infrastructure Hosting and Managed Services Program for Software-as-a-Service Providers

By G C Network | August 25, 2012

VIENNA, Va., Aug. 15, 2012 —NJVC® announces the release of NJVC SaaS Accelerate, a specialized infrastructure hosting and managed services offering designed to support the business needs of software-as-a-service (SaaS)…

Texas Cloud Computing Lessons Learned

By G C Network | August 12, 2012

Late last week  the Texas Department of Information Resources (DIR) released an important whitepaper that reviewed it’s multi-year Pilot Texas Cloud Offering (PTCO). This project was designed to allow a…

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