Barriers to Entry

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Also Risk Assessment

I am not sure if any businesses actually engage in risk assessment for technology or not but there are several fairly large risks in adopting cloud technology.
Data Ownership isn't clearly defined.
Transmission and storage security has been talked about but I haven't actually seen any solutions.
Also when ever you outsource any business unit you effectively tie your business to the outsourced business. If the vendor you are dealing with treats you as "just another account to boost the vendors profit margin" your own business may be in trouble.

Also the benefits are not really clear at this point.
1. Scalability - Great, how much is this going to cost my business
2. Agility - Great for a pack of gazelles but how does this translate into revenue for a business?
3. Cost Effective - Now this is were hard data would be nice. Is a business going to get the bottom service tier for relatively cheap but have to pay a premium for "gold" level service? If a business has to increase it's resource useage, what is the monetary charge?

Many arguments include analogies like "you already outsource your electricity." However, electric companies usually are either monopolies or at best duopolies and are heavily regulated by government. Same with banks. Now manufacturing is slightly different because you get a huge labor cost savings that offsets pretty much all of the other increased costs such as importing.
How will outsourcing a data center keep costs down. The vendor is still going to charge me for the electricity that is used. The vendor will charge me for the resources that are used. Depending on what cloud strategy is used, the recipient company might still have to pay for onsite techs.

This technology is still unclear on costs/benefits.
I wish we would stop getting Marketing Slogans and get some real world data.
"Increased Agility" is meaningless unless someone can actually explain what it means and how it benefits a company.

Posted by: mr1972   Posted on: 06/09/09 You are currently: a Guest | Members login | Terms of Use

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