Analyzing costs in cloud business models

By James Parker, senior vice president of sales, Savvis, Network World |  Cloud Computing, iaas

" Budget and billing arrangements. Flexible billing and service-usage metering are cornerstones of many cloud agreements. These arrangements make it easy for IT organizations to bill business units for resources like a utility company would. This also provides greater visibility into resource usage so that CIOs can effectively forecast their budgets. Public and hybrid cloud providers may also offer pay-as-you-use services, requiring no long-term commitment.

" Long-term strategy. Cloud's promise of compute power flexibility and scalability can enhance the way companies develop and market successful products and services and innovate. Of course, these are not easy to quantify. But they do need to be a part of the equation.

Whichever route to the cloud you take, the approach needs to be carefully measured. To realize cost-optimized cloud computing, you must weigh each application's requirements against existing costs and factor that into long-term IT and business goals.

Cloud isn't a one-size-fits-all proposition. Your service provider should know this and work with you to develop a solution set that meets your specific needs.

Savvis, a CenturyLink company, is a global leader in cloud infrastructure and hosted IT solutions for enterprises.

Originally published on Network World |  Click here to read the original story.
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