The Economics of Cloud Computing
An Overview for Decision Makers
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.
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
Chapter 2 Metrics That Matter–What You Need to Know
Business Value Measurements
Total Cost of Ownership
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