ZDNet – Does the cloud mean big data centers are dead? Economics says no

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Cloud economics are often glossed over or ignored in industry articles. Here’s some practical advice on the believe that colocation facilities and big in-house data centers are going the way of the buggy whip.

I’ve been hearing from the PR representatives of more than one industry futurist who are presenting the message that the concept of the data center is changing. They are proposing that enterprises are re-thinking the building stuffed to the gills with computers, storage, networking, power, cooling and other equipment that supports their internal IT operations.

These futurists are suggesting that the industry is moving away from large centralized data centers to many smaller data centers that are a combination of the company’s own data centers and those offered by cloud service providers. While the idea appears enticing on the surface, some of these pundits appear to have forgotten basic economics.

ZDNet and TechRepublic draw on their community of C-level executives and business thinkers to prognosticate where business technology is headed over the next 36 months. This includes advice, perspectives, and opinions on both creating and reacting to the future.
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One must remember that there are two different reasons enterprises have IT departments. One reason is that the company is offering an IT-based product or service that relies on its own data, proprietary applications and proprietary processes. Another reason is that the company uses IT based data and applications to support non-IT based products and services. How these enterprises see their IT resources often can be related to whether IT is the foundation of a product or service or if it is supporting something else.

More of the ZDNet article from Dan Kuznetsky

About Tony Johnson

Innovative helps you balance your business requirements, service levels, staff and infrastructure to make your IT as effective as possible. Tony Johnson is Vice President of Operations at Innovative and has been helping clients optimize their IT spend and operations since 1983.

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