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What Are the Real Economics of the Cloud?
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IvySchmerken
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IvySchmerken,
User Rank: Author
11/4/2013 | 2:31:31 PM
re: What Are the Real Economics of the Cloud?
Among the benefits of cloud is that firms can test out ideas for $12 as opposed to making an upfront investment in thousands of servers, noted Verizon Terremark's Chris Drumgoole. [http://www.wallstreetandtech.c... cloud brings down the cost of innovation.]
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
11/1/2013 | 7:02:17 PM
re: What Are the Real Economics of the Cloud?
Even without an economic downturn I think the cost savings are a big draw, especially for smaller institutions.
KBurger
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KBurger,
User Rank: Author
11/1/2013 | 4:04:25 PM
re: What Are the Real Economics of the Cloud?
I think with cloud it is emerging to be kind of "you can have it all." Right now, the focus is turning to the strategic benefits of the cloud (speed, flexibility, etc.) vs cost efficiencies. I guarantee if economic conditions take a turn for the worse the focus on cloud will be all about the savings. I don't see why both can't be priorities.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
11/1/2013 | 3:45:51 PM
re: What Are the Real Economics of the Cloud?
Estimating the actual costs of moving to the cloud is very difficult from the outset. But it's getting to a point where if you want to be a truly innovative company you're going to have to move certain functions to the cloud at some point because of the flexibility they offer. It really is a long term investment, and that has to be kept in mind when looking at the costs of the move.
Becca L
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Becca L,
User Rank: Author
10/31/2013 | 5:49:22 PM
re: What Are the Real Economics of the Cloud?
Excellent point. I had thought and heard the same. The "next big thing" is hardly ever as perfect as we imagine. Understanding these economics is indeed important, and I imagine these kinds of stories are stalling would-be cloud users. Cloud providers need to be more upfront about the potential costs.
Zarna Patel
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Zarna Patel,
User Rank: Apprentice
10/31/2013 | 2:48:11 PM
re: What Are the Real Economics of the Cloud?
That's an interesting perspective. I always here a lot about how switching to cloud saves money on maintaining data centers, but never enough on whether the actual process of switching is worth the price.
Byurcan
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Byurcan,
User Rank: Author
10/31/2013 | 2:08:41 PM
re: What Are the Real Economics of the Cloud?
The results of the KPMG study are interesting, given the cost-savings is usually the biggest benefit touted for moving to the cloud. While cloud services definitely have many benefits, it just goes to show that the picture if a bit more nuanced than some might paint.


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