About Enterprise Clouds, Private Clouds and a Scapegoat (CloudExpo Europe 2010) – Part 1

[ 0 ] July 5, 2010 |

The Time is Right for Enterprise Cloud Computing


At the CloudExpo Europe 2010 in Praque the main topic focused on Enterprise Cloud Computing and the statement “The Time is Right for Enterprise Cloud Computing”. And exactly this theme was my positive aspect of the conference. After finding the best definition in detail about “What is Cloud Computing” at the last month and years, during the CloudExpo Europe it was passed over to show the real benefits of Cloud Computing for the business and pointing out the best arguments and approaches.

Besides the technical pros of Cloud Computing comparing to a traditional data center, the financial amenities stood in the foreground as well.

Upfront costs and expenditure type
In a traditional data center an enterprise has to invest in upfront costs for hard- and software and need to assume the capital expenditure (capex) and costs for the operating expense (opex). A Cloud Computing provider however invests well-directed in his infrastructure and offer this as a service. Therefore an enterprise deliver the capital expenditure to the Cloud provider and just pay the operating expense if it’s needed.

Cash Flow and operational costs
As described above, an enterprise has to purchase it’s servers and software in advance. Using services offered by a Cloud provider, costs will only occur when the service is actually used. Regarding the operational costs, an enterprise constantly tries to downsize costs for development, deployment, maintenance etc. This outlay could be dispensed with the service delivery from a Cloud provider. In this case the Cloud provider is responsible for the life cycle of the hardware and software components

Financial risk
At first, investments in an own data center are always made in advance, whereby an enterprise had to assume a huge financial risk without the certainty to get a ROI. Getting services from a Cloud provider, the financial risk is reduced to a time frame of one month, by what the ROI could be measured contemporary as well.

In spite of the recurring discussion – Cloud Value is only about Cost – this myth was invalidated by the statement “Cloud Value is about Business Agility, Opportunities and Investment”. Because Cloud Computing stands for more benefits and possibilities as just convert your costs into variable ones. It allows a company to become more flexible and agile.

The statement “The Time is Right for Enterprise Cloud Computing” mentioned above was affirmed by an independent survey asking multiple CIOs around the world. Find some Q/A below:

Does Your Company uses Cloud Compuiting?

  • Yes: 51%
  • No: 49%

What level has your company adopted cloud Computing technology?

  • Combination of cloud and traditional: 60,58%
  • Experimenting: 24,93%
  • Solely cloud technology: 13,19%
  • don’t know: 1,3%

Was the Cloud Computing project that you undertook successful?

  • Yes: 96,18%
  • No: 3,82%

For those that didn’t use cloud computing:

  • It’s to soon to change from internal systems: 37%
  • Cloud Computing is seen a viable technology option: 42%
  • Intend to use Cloud Computing in the next 12 month: 21%

Move to the cloud – key issues:

  • Security
  • Integration
  • Reliability
  • Privacy
  • Costs
  • Vendor Lock-In
  • Scalability
  • Legal / Ethical

Cloud Computing usage scenarios:

  • Business Applications
  • Infrastructure as a Service
  • IT Management
  • Productivity applications
  • Collaboration Applications
  • Development/ Deployment

Do you expect Cloud Computing adoption will introduce new suppliers to your organization?

  • Yes: 61,9%
  • no: 14,5%
  • don’t know: 22,6%

Will Cloud Computing bring additional complexities in overall management of IT resources?

  • Yes: 26,9%
  • No: 54,9%
  • don’t know: 16,7%

Do you consider that Cloud Computing could result in a smaller ICT department?

  • Yes: 55,9%
  • No: 25,7%
  • dont know: 16,9%

In summary the survey shows, over 96% that undertook a cloud project deemed it successfull and 72% that don’t use cloud technology are positive for it’s adoption. Against that over 60% consider privacy, integration and reliability as key issues of Cloud Computing whereat nearly 85% of participants considered security as a key issue in moving to the cloud.

Tomorrow in the second part you will read why Cloud Computing is a scapegoat.

Category: Basics

About the Author ()

Rene Buest is Senior Analyst and Cloud Practice Lead at Crisp Research, covering cloud computing, IT infrastructure, open source and Internet of Things. He is member of the worldwide Gigaom Research Analyst Network, top cloud computing blogger in Germany and one of the worldwide top 50 bloggers in this area. In addition, he is one of the world’s top cloud computing influencers and belongs to the top 100 cloud computing experts on Twitter. For more than 16 years he is focused on the strategic use of information technology in businesses and the IT impact on our society as well as disruptive technologies. Rene Buest is the author of numerous professional cloud computing and technology articles, speaker and participant of experts rounds. On CloudUser.de he writes about topics from the fields of cloud computing, it-infrastructures, technologies, management and strategies. He holds a diploma in computer engineering from the Hochschule Bremen (Dipl.-Informatiker (FH)) as well as a M.Sc. in IT-Management and Information Systems from the FHDW Paderborn.

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