Seven myths which prevent success of Cloud

Grazed from InformationWeek. Author: DD Mishra.

Cloud is on the verge of becoming a mega trend and it is necessary we debate this topic to a great depth and discuss it openly to remove any confusion and look at cloud from a different window of opportunity. I have tried to capture here some of the myths which exist around cloud for a healthy debate in my endeavor to demystify. I am sure there are better opinions and views which are available than what is being presented here and it will be a pleasure to debate them on this forum.

1. Cloud brings significant cost savings
This is debatable and this may not always be true. There could be situations where a cloud could be more expensive. We often overlook several associated costs to compute the cloud expense. More often this myth is created as rhetoric by product vendors to make a business case for cloud computing. If you are going for an OPEX model with public cloud, your accounting becomes simple but this also comes with an overhead of additional charges. The logic is same as buying a car and renting a car where renting over a long period is more expensive…

If you are having an environment where the resources are largely underutilized with occasional or seasonal peaks, the cloud option could bring cost advantage. The cost benefit analysis should incorporate the bandwidth usage, any license fees, cost of hosting etc vs server cost, maintenance, electricity/fuel, datacenter charges, staff salary and communication/connectivity, network charges etc. which will help us identify true benefits. The holistic benefits of depreciation, amortization, tax advantages and other financial parameters should also be factored in for exact calculation of possible advantage we are expected to get from cloud computing over a period of time and should be compared not in isolation…

Read more from the source @ http://www.informationweek.in/cloud_computing/13-03-11/seven_myths_which_prevent_success_of_cloud.aspx