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January 13, 2010

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nate

I agree 100% with your bottom line, the problem is getting that in a cost effective way. Amazon is often touted as one of the lower costing clouds(if not the low cost? I haven't spent much time looking though others in my organization have). At least for our own stuff amazon is at a minimum a couple hundred percent more expensive to run than doing it ourselves, and that's not taking into account incidents like this, or the recent storage performance issues Rackspace has been trying to nail down in (one of) their cloud(s).

There certainly are cloud providers out there that can provide more guarantees but the prices go up even more(from 2-3x more expensive to 4-5x), making it even less cost effective for anything but really small installations(thinking single digit server count).

In my own talks with such providers, they often hard allocate resources to each customer, and if you want to grow beyond your up front allocation it is a process that takes days to weeks, rather than minutes to hours.

Days to weeks may still be a bargain for those organizations that start a purchasing decision and by the time they decide what they want to buy and actually get it installed and are using it it's already obsolete.

Smaller orgs like the ones I gravitate towards can already expand capacity in days to weeks so there is little benefit to the cloud in that respect.

I suppose there are exceptions though, if your own internal IT/operations is so horribly inefficient, or incompetent then what seems expensive to orgs like mine may be cheap to them.

I recall a few years ago at another company I worked at, they got bought out by a big $billion$ company. Not long after the parent company started to transition IT hosting stuff to the small company because the smaller one managed to do about 5x more per person than the bigger one.

Terry

Chuck,

According to James Hamilton over @ Amazon AWS.

Private clouds are better than nothing but an investment in a private cloud is an investment in a temporary fix that will only slow the path to the final destination: shared clouds. A decision to go with a private cloud is a decision to run lower utilization levels, consume more power, be less efficient environmentally, and to run higher costs.

http://perspectives.mvdirona.com/2010/01/17/PrivateCloudsAreNotTheFuture.aspx


Fast forward five years when Public Clouds are more secure, trusted, reliable and the end user have more control.

IT nirvana...

Chuck Hollis

Interesting point of view.

I suppose one analogy could be "why invest in a car, which is nothing more than a temporary step to the final destination of teleportation?"

I'd offer you need to spend more time with the enterprise IT crowd :-)

-- Chuck

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Chuck Hollis


  • Chuck Hollis
    VP -- Global Marketing CTO
    EMC Corporation

    Chuck has been with EMC for 16 years, most of them pretty good.

    He enjoys speaking to customer and industry audiences about a variety of technology topics, and -- of course -- enjoys blogging.

    He lives in Holliston, MA with his wife, three kids and three dogs when he's not travelling. Chuck enjoys piano, mountain biking, boating and skiing -- in that order.

    Warning: do not buy him a drink when there is a piano nearby.

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