Could Cloud Computing Cost More?

Leading Federal Integrators Address Tactical Cloud Computing

By G C Network | October 7, 2009

Yesterday during the first annual Government IT Conference and Expo, tactical cloud computing was cited as a critical component within this new paradigm. Joining me to address the issue were:…

Carpathia Creates Government Solutions Business Unit

By G C Network | October 6, 2009

In a strong statement of focus, Carpathia Hosting has announced the formation of Carpathia Government Solutions, a unit dedicated to providing solutions specifically for federal civilian and defense agencies. This…

INPUT FedFocus 2010

By G C Network | September 30, 2009

Please join me at the 7th Annual FedFocus Conference, November 5, 2009, at the Ritz Carlton in McLean, VA. This conference has been designed to provide crucial information on upcoming…

Dataline, Lockheed Martin, SAIC, Unisys on Tactical Cloud Computing

By G C Network | September 25, 2009

I’m proud to announce that representatives from Lockheed Martin, SAIC, and Unisys will join me in a Tactical Cloud Computing “Power Panel” at SYS-CON’s 1st Annual Government IT Conference &…

GSA, DoD and NCOIC to Collaborate on Government Cloud Computing

By G C Network | September 22, 2009

Yesterday, during the NCOIC Cloud Computing Workshop, collaboration seemed to be the focus as Katie Lewin, GSA Cloud Computing Initiative Program manager, and Dan Risacher, DoD Cloud Computing Storefront project…

FederalNewsRadio Highlights Government Cloud Computing

By G C Network | September 20, 2009

Last week’s Apps.gov announcement was the latest steps in the government’s “at the quick step” march into cloud computing. FederalNewsRadio, a Washington metro area media fixture, highlighted the event with…

NCOIC Officially Launches Cloud Computing Working Group

By G C Network | September 14, 2009

On Wednesday, 9 September 2009 the Network Centric Operations Industry Consortium (NCOIC) Technical Council formally approved the creation of a Cloud Computing Working Group (CCWG). Organizationally this new working group…

1 Billion Mobile Cloud Computing Subscribers !!

By G C Network | September 10, 2009

Yes. That’s what I said! A recent EDL Consulting article cites the rising popularity of smartphones and other advanced mobile devices as the driving force behind a skyrocketing mobile cloud…

NCOIC Holding Full-Day Cloud Computing Workshop

By G C Network | September 4, 2009

The Network Centric Operations Industry Consortium will be holding an all day Cloud Computing Workshop on September 21, 2009 in Fairfax, VA. Open to the public, this workshop will focus…

Pentagon Reviews Unisys Stealth

By G C Network | August 31, 2009

According to a Newtworkworld.com article, the United States Joint Forces Command (USJFC) is currently evaluating Unisys Stealth technology at the Joint Transformation Command for Intelligence (JTC-I) in Suffolk, Virginia. “Unisys…

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