Each time I think I have my cloud computing survey list set, another is released.  The latest is from Enterprise Management Associates, in a report entitled The Responsible Cloud.  The report price is outside of my price range, but Data Center Knowledge provides a good summary.

The survey sample:

“Enterprise Management Associates (EMA) interviewed 159 enterprises with active, or immediately planned cloud deployments, and reports that 75 percent said private cloud is the preferred model. Fifty two percent are implementing both on-premises and off-premises clouds…”

The key findings, according to Data Center Knowledge:

“Of the enterprises already running cloud computing, lowered IT capital costs (hardware, facilities, licenses, etc.) was cited by 61% of respondents. One quarter of all respondents reported that they had reduced both capital expenditure and operational expenditures such as staff, power, rent and maintenance costs.”

“Other benefits include freeing up strategic resources (49%), enabling disaster recovery/business continuity planning (46%), and increased flexibility and agility (46%). Overall, 89% of customers reported multiple outcomes, with just under half of all enterprises (46%) reporting five or more significant outcomes.

The report also found that the single most common level of OpEx reduction (from a sample of 79 respondents) was in the range of 21-30 percent. However, across all these respondents, cloud computing returned an average 22 percent OpEx saving.

Of the 76% of cloud customers that also reported real, measurable cost savings, the single most common level of CapEx reduction was between 11-20%. The CapEx return across all these respondents was 26%.”

Given the mix of public and private cloud and early adoption stage, it’s not surprising the CapEx reduction is in the 11-20% range.  As more use cases (workloads) shift to a cloud computing environment, you’d expect the CapEx reduction to increase.  Those CapEx reductions will further increase as use cases shift to a public cloud.  However, some of those savings will be offset by OpEx increases, as pay-as-you-go is a new OpEx item, and in-house personnel are still required to manage cloud computing deployments and business service levels.

Suffice to say, ROI calculators will become an important tool for cloud computing adopters and prospects.

Posted by brenda michelson at 12:19 pm in 100-days, adoption, Cloud Watch, economics | Permalink | Comments(0)
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Positive cloud adoption metrics from reddit:

“As most of you know, we moved reddit to EC2 back in May of 2009. Our experience there has been excellent so far. Since we moved to EC2, the number of unique users has gone up 50%, and pageviews are up more than 100%. To support this growth, we have added 30% more ram and 50% more CPU, yet because of Amazon’s constant price reductions, we are actually paying less per month now than when we started.”

The reddit blog post was in response to opinions that reddit’s site had slowed since the move to Amazon.  The post continues with a “nerd alert” section on the volume-based cause of the slowdown, and described the necessary changes to reddit’s database and caching architecture.

I won’t replicate the description here, but suffice it to say, scale doesn’t guarantee performance.

Posted by brenda michelson at 4:09 pm in adoption, Cloud Watch, elasticity & scale, performance & reliability, use cases | Permalink | Comments(1)
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Via Joe McKendrick, I came across Charlie Bess’ post listing some metric suggestions for cloud computing adopters.  Bess’ list:

  • Provisioning time (down, leading)
  • Service reuse  (up, lagging)
  • Utilization (hardware, storage…)  (up, lagging)
  • Uptime/hour  (down, lagging)
  • In house personnel dedicated to operations support (down, lagging)
  • Business value generated per effort hour (up, lagging)
  • Business value generated per watt consumed (up, lagging)
  • % of IT budget dedicated to fixed costs and maintenance  (down, lagging)

In reading the list, note the “items in parenthesis are first "the good trend" and if it was a leading or lagging indicator.”

This will be an important topic in 2010, and Bess’ list is a great starting point.  I especially like the business value focus, and the recognition that cloud computing does incur in-house personnel costs.  As Bess mentions, there needs to be more leading indicators, otherwise organizations might be inclined to stay with known costs, rather than introduce unknown expense, and of course, risks.

This is definitely a stream I’ll be following over 2010, the real-costs, value and risks.  And how the value proposition changes with the element of time.

Posted by brenda michelson at 11:26 am in adoption, Cloud Watch, economics | Permalink | Comments(0)
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