Economics of cloud computing

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Economics of cloud computing

  1. 1. Cloud Computing<br />From Horse Carriage to a Train<br />
  2. 2. Horseless Carriage Syndrome<br />The first cars also looked very similar to the horse and carriage (just without the horse). <br />=<br />People were Scared to travel in Cars<br />
  3. 3. Cloud Today = Fear, Uncertainty, Doubt<br />IT is going through a similar change. <br />The shift from client/server to the cloud.<br />
  4. 4. Cloud Promise<br />Cloud promises not just cheaper IT, but also faster, easier, more flexible, and more effective IT.<br />
  5. 5. Economics of Cloud<br />
  6. 6. From Mainframe to Client Server<br />New Technologies Needs Time<br />
  7. 7. Cloud = Economies of Scale<br />Supply-side savings. Large-scale data centers (DCs) lower costs per server.<br />Demand-side aggregation. Aggregating demand for computing smooths overall variability, allowing server utilization rates to increase.<br />Multi-tenancy efficiency. When changing to a multitenant application model, increasing the number of tenants (i.e., customers or users) lowers the application management and server cost per tenant.<br />
  8. 8. One Example<br />MIPS (million instructions per second)<br />
  9. 9. Major Cost Saving Elements<br />Infrastructure labor costs -  by automating many repetitive management tasks, larger facilities are able to lower them further than smaller ones.<br />Security and reliability - Large commercial cloud providers are often better able to bring deep expertise to bear on this problem than a typical corporate IT department.<br />Buying power-  Operators of large data centers can get discounts on hardware purchases of up to 30 percent over smaller buyers.<br />
  10. 10. Cloud Multiple Choices<br />
  11. 11. The Could Burst - Reality<br />
  12. 12. The Future of Cloud<br />Cloud security will evolve<br />Clouds will become more compliant<br />Decentralized IT (also known as 'rogue IT’) will continue to lead the charge<br />Perceptions are rapidly changing<br />Cloud services will enable IT groups to focus more on innovation while leaving non-differentiating activities to reliable and cost-effective providers.<br />
  13. 13. Manoj SharmaDatabase Administrator<br />manojatencore@gmail.com <br />Sources: Microsoft and other internet websites…..<br />
  14. 14. “Technology is a gift of God. After the gift of life it is perhaps the greatest of God's gifts. It is the mother of civilizations, of arts and of sciences.”<br />- Freeman Dyson<br />Lets embrace technology. If you like it, please Share!<br />www.essindia.com<br />This presentation is a part of the presentation contest organized by Eastern Software Systems. <br />DISCLAIMER: The views are entirely that of the author of the presentation (participant) and ESS does not associate itself with the content whatsoever. ESS cannot be held liable in any way for any claims arising out of the presentation or any copyright infringements by any of the participants or any repercussions from partial/complete implementation of any of the ideas presented. <br />

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