The Economics of Cloud Computing: An Overview For Decision Makers

This is the Safari online edition of the printed book.

This concise book provides decision makers with the insight and practical tools they need to make intelligent decisions about cloud computing and manage an effective migration to this new paradigm. Cisco's Bill Williams explains why much of what businesses now know about information technology will change dramatically over the next five years, and helps executives anticipate and prepare for tomorrow's radically new environment. Williams briefly explains the storage, compute, and network platforms and technologies associated with the emergence of cloud computing, analyzes the cost curves involved, and links them to standard industry metrics. His up-to-date examples utilize return-on-investment (ROI) and net present value (NPV) to measure the impact of investing in owned/leased hardware vs. purchasing cloud-based resources. Software licensing, disaster recovery and high availability, and capacity planning examples highlight additional decision points, further illuminating the financial impact of cloud computing. The Economics of Cloud Computing walks through every step associated with a successful cloud transition, and outlines repeatable processes for predictable, consistent IT performance in cloud environments. Readers will find easy-to-understand tables and graphs, as well as a set of templates and guides for migrating to cloud services. These useful and up-to-date tools are also provided for download at a companion website.

Foreword

Introduction

Chapter 1 What Is Cloud Computing?–The Journey to Cloud

Cloud Computing Defined

NIST Definition of Cloud Computing

Characteristics of Clouds

Cloud Service Models

    Software as a Service

    Infrastructure as a Service

    Platform as a Service

Cloud Deployment Models

    Private Cloud

    Community Cloud

    Public Cloud

    Hybrid Cloud

Conclusion

Chapter 2 Metrics That Matter–What You Need to Know

Business Value Measurements

    Indirect Metrics

    Total Cost of Ownership

    Direct Metrics

    Other Direct Metrics

Conclusion

Chapter 3 Sample Case Studies–Applied Metrics

Total Cost of Ownership

Software Licensing: SaaS

    TCO with Software as a Service

    Software as a Service Cost Comparison

Disaster Recovery and Business Continuity: IaaS

    Cost-Benefit Analysis for Server Virtualization

    Disaster Recovery and Business Continuity (IaaS) Summary

Platform as a Service

Conclusion

Chapter 4 The Cloud Economy–The Human-Economic Impact of Cloud Computing

Technological Revolutions and Paradigm Change

The Course of Human Development

    The United Nations Human Development Index

Cloud Computing as an Economic Enabler

    Cloud Computing and Unemployment

Cloud Computing and the Environment

    Meritocratic Applications of Cloud Computing

    Alternative Metrics and Measures of Welfare

The Economic Future of Cloud Computing

Conclusion

Appendix A References

Appendix B Decision-Maker’s Checklist

Glossary

 

 

9781587143069   TOC   5/29/2012