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Cloudonomics--understanding the cost benefits of the Cloud

A bad name for a good list of Cloud economic benefits.

Trying to figure out if the Cloud is right for your enterprise is a favorite topic of mine. I wrote previously about Joe Weinman, Strategic Solutions Sales VP for AT&T Global Business Services list of 5 questions you should ask yourself about Cloud consumption.

1. Is demand constant?
2. Is growth predictable?
3. Can demand be shaped?
4. Where are the users?
5. Is the application interactive?

Joe is back with a list of The 10 Laws of Cloudonomics. And while I hope the term Cloudonomics dies an immediate death, there are some pearls of wisdome within the list.

Public utility cloud services differ from traditional data center environments - and private enterprise clouds - in three fundamental ways. First, they provide true on-demand services, by multiplexing demand from numerous enterprises into a common pool of dynamically allocated resources. Second, large cloud providers operate at a scale much greater than even the largest private enterprises. Third, while enterprise data centers are naturally driven to reduce cost via consolidation and concentration, clouds - whether content, application or infrastructure - benefit from dispersion.

Cloudonomics Law #1: Utility services cost less even though they cost more.
Cloudonomics Law #2: On-demand trumps forecasting.
Cloudonomics Law #3: The peak of the sum is never greater than the sum of the peaks.

Read the rest at GigaOm