Posted by & filed under business models, Cloud Computing, Data storage, disruptive technology, EXAM ARTICLE, IS ethics, SaaS.

Description: How much does cloud computing really cost?  Anyone know yet?  Last week, I mentioned some estimates which suggest that companies can save up to 30% in IT costs over a three-year period employing cloud resources versus on-premises equipment.

Source: www.forbes.com/

Date: Nov. 8, 2011

A relatively small operation with two application servers and two database servers could expect to pay about $106,000 over a three-year period, versus $149,000 for internal IT.

That’s for adoption of public cloud services, of course, which involves paying a monthly subscription fee and not really worrying about all the behind-the-scenes IT.  But there are even more “private cloud”  projects going on within the walls of enterprises than public cloud engagements. READ REST OF STORY

Questions for discussion:
1.Why is it important for organizations to measure the TCO of Cloud computing?

2.  “TCO is not a useful metric for the “soft costs” of cloud.”  What are soft costs?

One Response to “7 Poor Excuses for Not Measuring Cloud Computing Costs”

  1. Sydney D

    Cloud computing can be very beneficial to companies, and especially those who have employees travelling. “Soft costs” are those attached to employees learning to use the new system. These costs can be big but in my experience with cloud computing, it is no different than saving files to the desktop. The monthly charges may be expensive to users who use it instead of a filing system, but they are also saving money in printing documents, filing and keeping hard copy records.
    It is important for companies and businesses to add up the costs associated with cloud computing since they can add up fast. For example, say the main reason a business decides to use cloud computing is because many of their employees are travelling and need access to documents. This is easy to set up but there are other costs associated with this transition, such as a laptop, smartphone, or tablet to be able to access the files from. Companies cannot expect for their employees to use their own resources.

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