Cloud is for Flexibility and NOT for cost saving


Sure – you might save cost by moving to cloud. There are these five instances where you can achieve cost saving:

  1. You have a compute intensive application needs to run once in a while.
  2. Size of your organization is small to medium where renting works out better for you.
  3. You are planning to revamp your CRM or Email solution.
  4. You expect large number of tablets (iPad and others) getting used in your organization and you will need an alternate to Microsoft Office.
  5. Your data center requires an overhaul where you can leverage virtualization / private cloud technologies.

However, if you approach the problem of moving to the cloud by looking at your application portfolio and attempting an analysis of “ROI vs. Risk vs. Effort”, you are not likely to reach anywhere. You will conclude that most application cannot be moved.

Wearing the Flexibility Cap

Or you might want to say – looking at the application portfolio through the flexibility lenses – you will see a different picture. Since, in cloud, the cycle time to add on remove computing power is close to zero, you will be able to evolve a different decision making style.

  1. You can defer all decision on how much computing power is required.
  2. As a startup you don’t have to worry about under investing or over investing on hardware.
  3. You don’t have to worry about sudden increase in transaction volume.
  4. Trial and error, gradual rollout becomes much easier to handle.
  5. On course correction becomes much simpler.
  6. Upgrades and release management becomes less of a risk because of no down time and easy fall-back option.
  7. DR planning becomes straight forward.

Is an Application Cloud Ready? Answer 4 simple questions

  1. Will I gain from the flexibility?
  2. Are there any technical hurdles for hosting the application in the cloud?
  3. Are the security risks acceptable?
  4. Are there any compliance issues?

If you answer “Yes” to the first question and “No” to the others, then just go ahead and move the application to the cloud.

Comments
4 Responses to “Cloud is for Flexibility and NOT for cost saving”
  1. Nilanjan Ray says:

    You can argue on both perspectives cost vs flexibility

    These vendors will take us wherever they want us to playing on the prevailing market condition. Recession time – come to Cloud – huge cost savings. Market gaining buying capacity – Flexibility over cost. That’s what sounds to me. Not many (wonder if any) will agree.

    Nilanjan

  2. njnhoj says:

    Udayan

    Interesting post, however I don’t entirely agree –

    >> However, if you approach the problem of moving to the cloud by looking at your application portfolio and attempting an analysis of “ROI vs. Risk vs. Effort”, you are not likely to reach anywhere. You will conclude that most application cannot be moved.

    can you substantiate this claim? i can think of any, except for the mission-critical applications, which have SLAs that cannot be met by public clouds. take Amazon for example, it is cheaper to provision infrastructure to meet SLAs (hence ROI is met), there are risks – but which ones are significant in the decision making, effort – depends on the app data largely but should not be worth consideration more than any other on site upgrade.

    http://blog.bygsoft.com/2011/04/09/3-simple-steps-to-adopt-cloud-computing/
    http://blog.bygsoft.com

    • Udayan Banerjee says:

      When you are trying to migrate an application the hardware is already in place – so the cloud rental is additional cost. The cost of managing the machine instance remains. Only saving is the space and power.

      The 5 cases where you will save is also there in the post.

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