Warning: Cloud projects may cost more than terrestrial projects. Cloud projects may not reduce IT cost. Unless, you carefully consider appropriate Cloud usage scenarios, build Cloud-aware solutions, and choose Cloud-native platforms.
Jared Wray (@jaredwray) has obviously been thinking about Cloud’s value proposition, market awareness, and end-user adoption scenarios. Jared has penned an excellent post on Cloud computings hidden costs that delivers in-depth analysis on Cloud computing dynamics.
Many news writers have documented cloud’s hidden cost, for example Beth Pariseau (@pariseauTT) at SeachCloudCOmputing documenting cloud sticker shock. Beth outlines a key areas to watch:
- Server instance performance
- Provisioning cost
- Data storage cost
- Distaster recovery, monitoring, and network bandwidth
Why Be Concerned About Cloud Cost?
Archana Venkatraman (@archanatweets) posts in ComputerWeekly that a
global survey of CIOs into attitudes and concerns relating to cloud computing has revealed that almost 80% are concerned about the hidden costs associated with cloud computing.
Adding to the conversation, Joe Mckendrick (@joemckendrick) details specific points of concern:
- Poor end user experience due to performance bottlenecks (64 percent). This goes right to the customer end-user experience as well, since e-commerce is the leading cloud application area, the survey finds – 78 percent of respondents are already using cloud resources to support e-commerce.
- The impact of poor performance on brand perception and customer loyalty (51 percent).
- Loss of revenue due to poor availability, performance, or troubleshooting cloud services (44 percent).
- Increased costs of resolving problems in a more complex environment (35 percent).
- Increased effort required to manage vendors and service level agreements (23 percent).
Correlating hidden cost fears, IBM’s recent admission that Cloud Foundry demand is “in its infancy” (reported by Joe Curtis @JoeCurtis_CBR), and a 2013 summer story of lagging Enterprise PaaS adoption, many IT professionals may predict that
PaaS may be poised to enter the trough of disillusionment.
The Smart Cloud Path Forward
Fortunately, smart tech leaders are presenting a viable path forward. A path that jumps over the disillusionment gulf. I especially appreciate Jared’s statement,
most savings come when users take advantage of the platform to optimize their workloads.
When workloads and the platform may become Cloud-aware, Cloud solutions can live up to the hype. Successful teams optimize code, configuration, and policy to capitalize on Cloud-native architecture and capabilities. Rather than a ‘Bigger in Texas’ design mentality, a frugal, just-enough at the right time, design must pervade the Cloud solution. I would like to see the industry move towards benchmarking how multi-tenant design effects ‘tenant density’ (tenant count divided by granularity), scaling time lag, and solution cost.
Reducing Cloud Computing Cost: Recommended Reading
Hidden Cost of Cloud Computing (Joe Mckendrick)
Where is the Rub: Cloud Computings Hidden Costs (Jared Wray)