Tuesday, January 26, 2010

Cloud Customers Report Capital Cost Savings - really??

I was reading this article "Cloud Customers Report Capital Cost Savings" which is based on a research report from "Responsible Cloud": very interesting data:
  • Total enterprises interviewed: 159
  • Private Cloud preferred: 75% Out of which 52% are implementing both on-premises and off-premises
  • Customers seeing CAPEX (power, cooling) savings: 61% 
  •  Customers seeing both CAPEX & OPEX savings: 25%
  • 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%. However, across all these respondents, cloud computing returned an average 22% 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%.
There are many more numbers attached, but, I am not convinced how Cloud deployment can save mainly CAPEX savings.  I strongly believe that this is due to Virtualization and not just deploying REST based services.  If they really went to REST based services for storage, applications, etc., then they would have encountered lots of professional services expenses which is not shown.

    No comments:

    Post a Comment