Cloud computing cost savings: TRUE or false?

There is a common perception among cloud advocates that cloud computing has a certain economic advantage over internal computing. But that is not the case.

Even so, it is a dominant point of view for users who do not yet have real cloud computing http://www.aliyun.com/zixun/aggregation/9270.html "> Experience" and the network operators that are just beginning to dabble in cloud computing services. In fact, these groups estimate that the cost savings from cloud computing can reach at least 25%, while the average user's cost savings are about one-third of the original cost. This is a conceptual misunderstanding. This is because, while almost every company can benefit from cloud computing (that is, almost every cloud services market is profitable), not every application is a cloud computing application.

It may be critical to understand the differences among vendors who use cloud computing services as a means to achieve the best profit targets.

What about the cost savings of cloud computing?

Cloud computing cost savings represent the difference between running a given application in cloud computing and running the same application in an internal calculation. This cost variance stems from capital and operating expenses such as hardware and software, maintenance and support, and facilities, which are understandable by both users and operators. The sources of these cost differentials usually come from changes in basic costs and economies of scale.

The basic cost variance in hardware and software is most relevant to the size of the purchase, which means that the cloud vendor that buys thousands of servers is able to get a lower price than a retail buyer who only purchases a small number of servers. This situation suggests that this basic cost savings may best be adapted to small and medium-sized enterprises that do not have it purchase pricing rights.

Many companies already have the same measures to ensure that the price advantages of cloud computing vendors are met, which makes it less likely that vendors will achieve the expected cost savings through the size of their purchases. It also makes it hard for them to realize the benefits of cost savings in hardware and software.

Instead, cost savings in maintenance and support can more broadly explain the fundamental cost differences between cloud computing and internal computing. The most substantial benefit of cloud computing is its centralized maintenance and support capabilities, while cloud computing providers can find qualified candidates for support positions and provide a solid plan for their career development. In general, end users, including some enterprises, are unable to do this, and this problem translates into higher labour costs, retention problems, additional technical training and accreditation costs. But in large urban areas with strong, technology-driven labour resources, larger companies tend to rival cloud-computing providers in this cost area, and they will flatly reject the temptation to call cloud computing cost savings.

Finally, the basic cost variances presented in the facility include the cost of ground space, insurance and heating, ventilation and cooling in the data center. A cloud-computing provider can deploy facilities in all the lower-cost areas, while businesses typically have to deploy their data centers at the company's headquarters or major satellite city offices or their attachments. Therefore, the basic cost of this is basically always the cloud computing provider to show the most obvious benefits.

(Responsible editor: The good of the Legacy)