Friday, October 23, 2009

Cloud computing is not necessary cheap

I think people has to understand that cloud computing is not just a low cost bandwagon that everyone should jump on. Cloud computing is actually not even low cost if you do not have sufficient numbers to use the services. That's why I'm curious on why this topic of cost always appear when there's mention of cloud computing.

Personally, I think people are missing the whole idea of cloud computing. It's not a new idea thought up to reduce cost. I believe the fundamental basis for cloud computing is to:
  1. outsource the maintenance of IT infrastructure and not worry about things such as upgrades and maintenance periods;
  2. enable easy scalability of resources needed, especially in cases where there are peak and off-peak periods;
  3. take advantage of common services used by big companies (may or may not) and leverage on those best practices to quickly build up your capabilities.

This need not necessarily be cheap. Most of these services usually will charge on a per user basis. However, tapping on these services will allow the business owners to direct their energies to the core business functions and leave the IT side to the experts. The businesses will then need to develop skills on how to manage these cloud computing vendors to further add value to the business functions.

Cloud computing is a step forward in terms of adding value to businesses if you plan it well and its sole purpose is not to save cost. My opinion of course...

If you pay peanuts, you get monkeys.

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