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The Cost of Cloud Computing - outside reading

  • 1.  The Cost of Cloud Computing - outside reading

    Posted Thu June 30, 2022 12:41 PM

    This piece was socialized on a webinar I viewed with a couple of IBM executives on the system Z side.  The discussion is really around fully evaluating Cloud economics for hyperscale growth industries that can level off over time, as an ever-popular cloud space becomes shocked full of data services providers and the overall demand slows. A new term is introduced specifically to 'repatriation', which I had never heard before reading this article.

    The essence is that extreme growth can at some point level out on the Cloud to where the bottom line profit margins begin to get overtaken by the mounting costs of cloud infrastructure. So you spend heavily during the growth stage and hold steady. The problem is described that this flexion point can possibly erode margins over time and at that point, some recovery can be realized by moving selected workloads from the Cloud back to an on-premises infrastructure that is locally owned and operated. There are some examples where doing this can work to improve your overall margin without sacrificing your ability to provide business services and data.

    Just an interesting read that is more from a business perspective, rather than the flashy technical side where we are steamrolled with different measures on throughput, storage, and CPU savings. 

    The Cost of Cloud, a Trillion Dollar Paradox by Andreesen Horowitz:

    The Cost of Cloud, a Trillion Dollar Paradox | Andreessen Horowitz

    Andreessen Horowitz remove preview
    The Cost of Cloud, a Trillion Dollar Paradox | Andreessen Horowitz
    There is no doubt that the cloud is one of the most significant platform shifts in the history of computing. Not only has cloud already impacted hundreds of billions of dollars of IT spend, it's still in early innings and ...
    View this on Andreessen Horowitz >



    Doug Dailey
    Product Manager
    IBM Data and AI on Z, Data Virtualization Manager for z/OS

    Test Drive Data Virtualization Manager for z/OS! ibm.biz/dte-live