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Questions on cloud savings

Questions on cloud savings

Moving to a third-party cloud computing service can be close to 150 per cent more expensive than running an in-house data centre, reports McKinsey.

Research group McKinsey & Company has published a new research skewering the popular notion that super-hyped cloud computing architecture is a money saver, reporting that moving to a third-party cloud computing service can be close to 150 per cent more expensive than running an in-house data centre. McKinsey researchers reported that cloud computing suffered from having various definitions and was near the top of the "hype cycle" tracked by fellow research group Gartner.

Their report, Clearing the Air on Cloud Computing, found that most customers of cloud computing services were small businesses - the segment of the business IT market for which such services were most cost effective.

But larger enterprises still faced major problems in moving to cloud computing systems, the report's authors found. Problems included cost-effectiveness, security and reliability and the readiness of the IT industry to begin migrating to cloud architectures.

"The cost of the cloud must come down significantly for outsourcing a complete data centre to make sense," the report said.

Read more at MIS Australia

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