Cloud Economics Foggy to Many Businesses
July 4, 2013
Grazed from Channelnomics. Author: Larry Walsh.
Vendors love cloud computing, at least in theory. The cloud computing model offers something many IT companies — vendors and solution providers alike — have never seen: recurring, predicable and accruing revenue. And, because cloud can be delivered at scale with fewer resources, such services are inherently more profitable.
Cloud economics aren’t lost on businesses. Rather than building and maintaining their own IT systems and applications, cloud computing promises to lower costs by making applications and resources more affordable through fractional recurring fees. Here’s the problem: Businesses are worried about getting trapped in a service provider’s cloud…
Unlike conventional IT equipment and software, cloud computing requires feeding. If a business stops paying, it loses access to mission-critical resources. And while the monthly, quarterly or annual payments are often less than conventional licenses, the need to continue paying fees indefinitely means there’s no respite from costs…
Read more from the source @ http://channelnomics.com/2013/07/03/cloud-economics-foggy-to-many-businesses/