Chapter 3. The business case for cloud computing
This chapter covers
- The economics of cloud computing
- Where the cloud does and doesn’t make sense
- Using the cloud in zero-capital startups
- Using the cloud in small and medium businesses
- Cloud computing in the enterprise
Chapter 1 gave you the “what” of cloud computing. Delving into the technology behind cloud computing in chapter 2, you learned the “how.” Let’s now look at the “why” and “when.” These two questions have to do with the economics and the broader business issues that you need to examine when and if you consider moving to the cloud. You’ll need to know how to make the transition, the type of cloud that makes sense, and when is the right time to make the move.
In looking at the economics of cloud computing, first we’ll examine the most common models for setting up and managing IT infrastructure including internal IT, colocated, managed services, and the cloud. A good way of doing this is to compare the detailed costs of deployment in the different models—comparing apples to apples. Next, we’ll explore what application characteristics do and don’t make sense for deploying to the cloud. Zero-capital startups are a new and interesting phenomenon made possible by the cloud. But many of the parameters that make a zero-capital startup using the cloud compelling don’t apply to medium or large businesses; still, it’s illustrative to see why many startups getting funded today don’t purchase a single server.