CIOs architect a cloud computing business model, with watchful eye on costs

Grazed from TechTarget. Author: Dina Gerdeman.

As companies gain efficiencies in the cloud, they often look to emulate the same kind of experience in their own operations. Forrester Research Inc.’s James Staten said he’s seen a pattern at companies that use quite a bit of public cloud. Eventually many come to realize that some apps really aren’t a good fit for the public cloud. Perhaps these apps sit 24×7 and rack up high bills, or they require too much monitoring. What often happens next is the company will decide to build internal systems that mirror the public cloud.

"That usually ends up being pretty effective," Staten said. One concept that companies have borrowed from the cloud: charging per user or per department for the various IT services each department needs. This chargeback model charges each department that uses email a certain amount for that email service, for example…

In fact, IT often takes on a "broker" role, acting as the bridge between the various cloud services that are available and the departments that need those services, said Owen Rogers, senior analyst for digital economics for 451 Research. In this way, IT is able to take advantage of the scalability benefits of cloud computing, in which each department uses only the services it needs, so resources aren’t wasted…

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