Jan 10, 2013
“Going to the Cloud” may have implicitly meant saving money for many in 2012, but increasingly, IT has to provide deeper fiscal justification for its cloud strategy if it’s to get buy-in from the business.
Matters are only made more complicated by the emergence of different types of clouds. As I point out in my recent blog post at Network Computing, cloud offerings are becoming more varied. Personal Clouds will replace PCs as the center of our digital lives. Industry-specific clouds are emerging that address specific security and regulatory needs. Metal Lynx, for example, is a cloud community targeting buyers and sellers of precious metals. Verizon is launching its only healthcare-specific cloud targeting those concerned with the Health Insurance Portability and Accountability Act (HIPAA).
Appealing to security and regulatory concerns is a good move on the part of these providers since for many buyers, simply selecting cloud services based on ROI can be very, very difficult. This is in large part due to the elasticity of many cloud offerings, such as Amazon’s Reserved Instance, where numerous factors, such as usage patterns, costs, preferences around utilization level, and commitment term can all impact an organization’s costs.
The good news is: seven vendors are already offering cloud modeling and costing tools for determining the true cost of Cloud services, and how best to utilize on-demand resources. I review them in greater length here, but in brief:
The potential savings and agility gains offered by Cloud services are too important to IT, but only if IT can get buy-in from management. Demonstrating the real fiscal value — not just the promise — of going to the Cloud is best way to secure that purchase order for more Cloud services.
Image credit: danxoneil (flickr)