The Economics of Cloud Computing: An Overview For Decision Makers

The Economics of Cloud Computing: An Overview For Decision Makers

by Bill Williams

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The Economics of Cloud Computing

An Overview for Decision Makers


Bill Williams

Foreword by George Reese, author of Cloud Application Architectures


The decision-maker’s guide to cloud computing: from making the case to managing the transition


This concise book delivers the insight and tools you need to make intelligent decisions about cloud computing and effectively manage the transition to this new paradigm. Bill Williams explains how cloud computing platforms are transforming business IT and helps you fully understand the economies of scale and other benefits associated with “the cloud.”


Williams defines and explains cloud computing platforms and technologies, analyzes the costs associated with the IT supply chain, and (using industry standard metrics) creates a process for measuring the value of implementing cloud service models. He presents realistic and up-to-date ROI and NPV calculations comparing cloud strategies with conventional investments in owned/leased hardware. Through additional examples, he addresses costs and savings related to software licensing and disaster recovery/high availability, offering even deeper practical insight into the financial impact of cloud computing.


Writing for business leaders and “in-the-trenches” managers, Williams outlines the impact of cloud computing on the IT supply chain by contrasting legacy processes and systems with cloud computing implementations. To simplify deployment, Williams presents easy-to-use tables, a decision-maker checklist, and a comprehensive collection of additional resources for further study.


·         Understand today’s leading cloud service and deployment models

·         Identify the major characteristics of cloud computing platforms

·         Use key performance/success indicators to measure IT performance and influence business strategies

·         Quantify the baseline costs of your current IT value chain

·         Use TCO, the payback method, ROI, NPV, and other metrics to justify cloud deployments

·         Calculate the total financial impact of migrating to “the cloud”

·         Place cloud computing in the historical context of technological revolutions

·         Recognize the long-term social and global benefits of cheap and ubiquitous computing


This volume is in the Network Business Series offered by Cisco

Press®. Books in this series provide IT executives, decision makers, and networking professionals with pertinent information about today’s most important technologies and business strategies.



Product Details

ISBN-13: 9780132904162
Publisher: Pearson Education
Publication date: 06/25/2012
Series: Network Business
Sold by: Barnes & Noble
Format: NOOK Book
Pages: 150
File size: 2 MB

About the Author

Bill Williams is a 16-year information technology veteran. Fourteen of those years have been with Cisco Systems, where he has held several leadership positions. Currently, Bill is a regional manager for data center and virtualization technologies, covering the service provider market segment. In 2008, 2010, and 2011, Bill lead the top-producing service provider regions in the United States and Canada. In 2010, Bill won the Manager Excellence award.


Bill attended the University of North Carolina at Chapel Hill and holds master’s degrees from Harvard Divinity School and the UNC Kenan-Flagler Business School. Bill also holds U.S. Patent 7260590 for a content delivery application.


The Economics of Cloud Computing is Bill’s second book for Cisco Press. The Business Case for Storage Networks was published in 2004.


Bill lives with his wife and children in Chapel Hill, North Carolina.


Table of Contents



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


Chapter 2 Metrics That Matter–What You Need to Know

Business Value Measurements

    Indirect Metrics

    Total Cost of Ownership

    Direct Metrics

    Other Direct Metrics


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


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


Appendix A References

Appendix B Decision-Maker’s Checklist




9781587143069   TOC   5/29/2012


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