Your public cloud savings might evaporate as your usage scales up
August 19, 2013
Grazed from FierceCIO. Author: Derek Slater.
Cloud computing can save money–no question about it. But as more companies gain more experience in various cloud setups, a more nuanced understanding of the cost structure emerges. On ITBusinessEdge, Arthur Cole points out a couple such lessons, particularly with an eye toward public, private and hybrid differences.
One lesson is the simple observation that overprovisioning is expensive and wasteful. Okay–this has always been true in data centers and in IT generally. The naive view of the cloud was that its flexibility means you can scale your spending up or down so quickly that an overprovisioned situation would never last long. The realities of contracts, monitoring and unpredictable loads mean that it’s not always so simple…
The greater point of Cole’s article, though, is that public cloud resources are cheap when used in small amounts, but the cost efficiencies diminish when your usage scales up. The ‘advanced’ services that become necessary for big cloud users–load balancing, application management and file sync–are significantly more expensive than simple commodity computing cycles…
Read more from the source @ http://www.fiercecio.com/story/your-public-cloud-savings-might-evaporate-your-usage-scales/2013-08-19