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.
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?