As organizations are realizing the benefits of cloud computing, an increasing number are choosing an internal option. All recent industry surveys point to a growing use of internal clouds as IT starts to transform internal infrastructure into more flexible and cost effective private cloud services. Hybrid clouds, which bridge public and private clouds, are forecasted to grow at a considerable rate, with the Future of Cloud survey predicting that hybrid clouds will be the most prevalent model within five years.
Cost factors are always an important consideration. Given the level of systems and network redundancy and availability required for mission critical applications, an analysis of the cost of hosting these apps in-house versus the ongoing cost of using public cloud services must be done. Some of the most important factors to consider in the analysis include:
" Internal hardware costs are new systems required or can you leverage existing infrastructure? Remember to consider the costs for failover and disaster recovery computing, storage and network infrastructure." License costs for third party software such as hypervisors, databases and applications." Internal operational expenses for managing internal infrastructure and software, power and cooling costs etc." For capital purchases, the cost of capital leases and depreciation.
While a quick analysis may indicate that an in-house deployment is cheaper than ongoing cloud expenses, that may not be the case. Cloud providers are likely to have better economies of scale that translates into lower operating costs, higher availability and redundancy, and easier scalability.
All indications are that mission critical applications are moving to the cloud at an increasing rate as new and more secure cloud services are offered in the marketplace. Some legacy apps are being replaced by SaaS solutions, cutting down on the number of apps that can't be moved.
The important point is that decisions about moving to the cloud need to start from an application standpoint, with a thorough consideration about viability, availability, performance, security and cost. Doing this work will point to the right cloud public, private or hybrid or maybe no cloud at all.
Egenera's industry leading cloud and data center infrastructure management software, Egenera PAN Cloud Director and PAN Manager software provide a simple way to quickly design, deploy and manage IT services while guaranteeing those cloud services automatically meet the security, performance and availability levels required by the business. Headquartered in Boxborough, Mass., Egenera has thousands of production installations globally, including premier enterprise data centers, service providers and government agencies. For more information on the company, please visit www.egenera.com.
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