Cloud Total Ownership Costing

What a pleasure it was to attend the ICEAA conference in Atlanta. I had the opportunity to present the attached slide deck, developed by Steven Woodward of Cloud Perspectives and myself, on “cloud costing.”

When someone asks me if cloud is cheaper than on-premise the answer is, "It depends."

It is always interesting to see how many people think cloud is a magic bullet, reducing costs to almost nothing. That is sometimes true. And often cloud costs are as high or higher than on-premise.

Still, there are many reasons to consider cloud such as:

  1. Quick deployment with SaaS if you can stick to the out of the box functionality; customization can be slow and expensive
  2. Quick availability of computing resources with IaaS
  3.  Potentially higher security at a lower cost, since cloud vendors are investing heavily in security
  4. Sometimes lower cost
  5. Lower startup cost

One example in the paper shows purchasing an on-premises Infrastructure as a Service (IaaS) yielding a far lower total ownership cost.

The paper also introduces the use of functional sizing to scope a cloud deployment and identifies some historical "Black Swans."

The challenges of unachievable Service level agreements (SLA) are also introduced.

Here are the slides: "Cloud Total Ownership Costing: Considering the Technologies, Costs and Benefits"