Microsoft riffs on cloudonomics: Economies of scale favor public cloud computing

Microsoft riffs on cloudonomics: Economies of scale favor public cloud computing

Summary: Microsoft has published a white paper on cloud computing economics and argues that large clouds could deliver computing power at up to 80 percent lower cost than small ones.

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Microsoft has published a white paper on cloud computing economics and argues that large clouds could deliver computing power at up to 80 percent lower cost than small ones.

That's an interesting argument and makes you wonder how private clouds are going to play out in the future.

In its paper, Microsoft says that supply, demand and multi-tenancy all favor the economics of large clouds. In fact, "private clouds may one day carry a cost that is as much as 10x the cost of public clouds," said Microsoft.

What's unclear is the timeline here. Microsoft is obviously pitching its Azure platform and the public cloud folks (Amazon Web Services, Salesforce.com and Google) are likely to agree with the conclusion. Vendors pushing private clouds and equipment (VMware, HP, IBM and a bevy of others) are likely to disagree.

The open question is the timing of the shift from hybrid and private cloud approaches to mostly public ones. Nevertheless, the paper is worth a read. Among the notable graphics:

Topics: Servers, Cloud, Hardware, Microsoft, Virtualization

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9 comments
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  • RE: Microsoft riffs on cloudonomics: Economies of scale favor public cloud computing

    It is obvious. Classic in-house IT may be the thing of the past in a decade or so.
    OxBAADFOOD
  • RE: Microsoft riffs on cloudonomics: Economies of scale favor public cloud computing

    Sorry Microsoft. Google will get that public contract and you'll be relegated to obscure small islands in the sky. Then you'll go out of business.
    The Danger is Microsoft
  • Better if you don't use MS products.

    Imagine a world without Gates and Windows....

    It's an awesome world indeed.
    itguy08
    • RE: Microsoft riffs on cloudonomics: Economies of scale favor public cloud computing

      @itguy08/The Danger is Microsoft,

      Can you guys ever contribute anything and quit trolling?
      bmonsterman
      • RE: Microsoft riffs on cloudonomics: Economies of scale favor public cloud computing

        @bmonsterman The short answer is "No", itguy08 is a "troll vulgaris", and posts the same thing on many websites under slightly different but similar handles.
        OxBAADFOOD
    • It's not 2000 anymore dude

      @itguy08

      Hey itguy, Bill Gates hasn't been with Microsoft for many years already. Now get back to that DEC teletype and do something useful.

      -M
      betelgeuse68
  • You can trust me...

    When it comes to performance and security, all the vendors trot out their shows and say "you can trust us".

    The only way to protect it is to encrypt it locally. Once you've already done that computing why not just store it locally too?
    just1opinion
  • RE: Microsoft riffs on cloudonomics: Economies of scale favor public cloud computing

    This is obviously part of a marketing campaign to feed Microsofts Cloud services products.
    Anyone with an ounce of IT savvy should see right through this campaign of misinformation. It is total BS for MOST companies who already have large IT resources and budgets and lots of legacy apps. It will be another 10 years before entire apps can be rebuilt from scratch for the cloud-model for most large organizations. Then there is the problem that, if your internet goes down ever, you loose access to EVERYTHING, and your entire business come to a stop. Internet links are always going down in different areas, just ask someone who works for the ISP's.
    crowfly
  • RE: Microsoft riffs on cloudonomics: Economies of scale favor public cloud computing

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