When will the CIO's stop offering IT services for free?
I can't understand how IT Data Centers can offer services for free. The
company pays rent, the offices are not for free; it pays salaries, the
employees are not volunteers; it pays for all compute resources,
hardware software, network, it pays for outside cloud providers. How can
an IT organization with tens of millions budgets offer the services at
no cost internally? And if there is an internal cost, it does not mean
the price charges is not marked up.
A cloud is a business model that has disrupted the corporate Data Center Model, but it did not get all the way through. The Data Center Cloud(s) AND the Outsourced Cloud elements are both owned by corporate IT and must be managed as a whole in most optimal way. As the cloud offers pay-per-use services, someone must pay for them.
Each time a corporate user buys computer resources from a public provider like AWS, Rackspace & similar, he receives a utility invoice with all the details. Monitoring the customer use of public clouds is a growing cottage industry with companies like Cloudyn, Cloudability Newvem and others, who extract the maximum value per buck. They are SaaS cost optimization companies . Indirectly, they feed more business to Amazon, promoting the belief that Amazon does not charge them for resources they don't need
The question is, why can't the Data Center, - now selling services as a Private Cloud - offer it's corporate internal users the same clear invoices as AWS and Rackspace, offer each time they receive credit card payment?
IaaS and PaaS and SaaS are geek words. We need a report in the CEO language. A user satisfaction report and a reports from the CIO to the CEO showing the black profit in the P&L of the Enterprise cloud.
Last week IDC released a new Cloud Decision Framework Tool. It is free to use following a registration process. The output of the tool is summarized in those two screens:
IDC tool is nice, but why it does not show the revenues side of the IT operation?
We are at a stage in cloud adoption, when we need to run both the private and public side of a corporate cloud as one business, with internal and external users and the goal should be 1st maximizing the profit, while maintaining a specified level of service.
Today June 22, 2012, there is not even one product to offer this capability from one single company.
The
only way for a CIO to keep the CEOs attention span intact is to talk about the
operating the IT as a business, i.e. being able to show an IT P and L statement at any time
A cloud is a business model that has disrupted the corporate Data Center Model, but it did not get all the way through. The Data Center Cloud(s) AND the Outsourced Cloud elements are both owned by corporate IT and must be managed as a whole in most optimal way. As the cloud offers pay-per-use services, someone must pay for them.
Each time a corporate user buys computer resources from a public provider like AWS, Rackspace & similar, he receives a utility invoice with all the details. Monitoring the customer use of public clouds is a growing cottage industry with companies like Cloudyn, Cloudability Newvem and others, who extract the maximum value per buck. They are SaaS cost optimization companies . Indirectly, they feed more business to Amazon, promoting the belief that Amazon does not charge them for resources they don't need
The question is, why can't the Data Center, - now selling services as a Private Cloud - offer it's corporate internal users the same clear invoices as AWS and Rackspace, offer each time they receive credit card payment?
IaaS and PaaS and SaaS are geek words. We need a report in the CEO language. A user satisfaction report and a reports from the CIO to the CEO showing the black profit in the P&L of the Enterprise cloud.
Last week IDC released a new Cloud Decision Framework Tool. It is free to use following a registration process. The output of the tool is summarized in those two screens:
 |
| Sample Assessment Score Results from IDC Cloud Decision Framework Tool. |
 |
| Sample Financial Savings Results from IDC Cloud Decision Framework Tool. |
We are at a stage in cloud adoption, when we need to run both the private and public side of a corporate cloud as one business, with internal and external users and the goal should be 1st maximizing the profit, while maintaining a specified level of service.
Today June 22, 2012, there is not even one product to offer this capability from one single company.
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It Support London
Seattle IT Consultant