Chris Fleck's Blog
The economics of Cloud Computing do point out a major Cloud advantage when it
comes to short term or variable workloads. On the surface though it's
apparent that Amazon's EC2, for example, is significantly more expensive if
the set up is utilized 24x7x365, even a 40 hour week yields a slightly higher
Below is a simple comparison of Amazon EC2 vs. purchasing a set of servers
for development purposes ( I have added some additional costs and scenarios).
This example also assumes the servers fit in existing space and either
environment would be managed by existing staff.
On the surface it's apparent that EC2 is significantly more expensive if the
set up is utilized 24x7x365, even a 40 hour week yields a slightly higher
cost. So where is all the savings? What's all the hype about?
Purchase - on Premise
Quad-Core Servers ( 5 x 3,000 each )
The Amazon Web Services (AWS) announcement of the Virtual Private Cloud (VPC)
offering has just made Cloud Computing more attractive to the enterprise.
Most companies I talk with are interested in the “Cloud”, but beyond a
few SaaS apps and perhaps some dev/test they are not ready for any big change
to their corporate IT infrastructure. On the other hand many of those same
companies are currently or projected to be capacity limited in their own data
center based on space or power limitations.
Many companies will opt to move or expand into a Co-lo (Co-location) facility
which prov... (more)
The recent announcement of the Terremark Cloud offering has raised
significant attention especially because of the competitive pricing and EC2
like features of elastic capacity and hourly charges with no commitment. On
the surface the Terremark entry price of $0.036 per hour seems very low
compared to Amazon EC2 at $0.10 but it's worth picking a few examples to
provide a more apples to apples comparison.
Not included in the comparison is the difference in storage costs which can
be small or very significant depending on the circumstance. Amazon provides
up to 160 GB of instance... (more)
Chris Fleck's Blog
There is a lot of hype and reality in the world of Cloud computing today. On
the hype side there are numerous data points; VC investments, M&A, data
centers under construction, new conferences and events. On the other hand
there are now many examples of reality as well. SaaS offerings like
Salesforce.com and many HR applications plus web site hosting have
established themselves as a legitimate part of the IT portfolio of many
corporations large and small.
Adding fuel to the fire is extensive press, analyst and blog coverage (like
this!) plus books like Nicholas... (more)
Chris Hazelton from the 451 Group: "The iPhone has so effectively whetted the
appetite of corporate mobility users wanting more feature-rich products that
executives are smuggling the device into the enterprise without
authorization. No single vendor - as cool as Apple may be - can possibly
develop sufficient applications to sate this appetite, so third-party
software developers have an immense opportunity to add value. The question
is, will Apple decide this is the road it wants to travel? Will it cede the
control it so famously exerts over every stage of its products developmen... (more)