Cloud Cost of Computing E012

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A Bit of Security for March 20, 2024: Cloud ROI - Can It Be Real?
A recent press release suggested that companies could realize a savings of 250% by migrating to cloud. I was skeptical until I thought a bit more deeply about it. My concern was that cloud introduces an additional layer of infrastructure and operations complexity, so at a minimum your cost of computing would go up by some non-trivial compute. That additional networking, remote storage, general systems management using third-party tools and handled at a remove form the platform woud be an additional burden, I thought. Contract management costs exceeded what a typical data center once never had to worry about. But then I thought more deeply about the issue, and I realized that I was using the wrong measurement. I started my IT career at one of the most well-managed mainframe installations in the world, and then went to work at IBM which – as a manufacturer – cut costs to the bone to preserve hardware margins for end-user products. That meant the data centers inside IBM then were running on older gear and had to be maintained and operated at peak efficiency 100% of the time. I adjusted the baseline.
The Real Decisions company ran sophisticated benchmarks for decades, and the results were startling. The difference between a well-run data center and a poorly-run data center were a factor of eleven times in cost per normalized unit of work. So migrating to cloud can generate a significant savings in data center costs, if you were bad at it before.
Let me know what you think in the comments below or at wjmalik@noc.social
#cloudeconomics #datacenterefficiency #P2V #Migration #BitofSec #cybersecuritytips