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Cloud computing could cost more

Cloud computing, one of the hottest buzzwords in the technology industry, currently costs big companies more than some other alternatives, according to a report from management consultancy McKinsey.

Cloud computing, a broad term for a variety of technologies that move computing tasks off companies' servers and onto shared data centers accessed over the Internet, is a trend many computer and software vendors are pushing, hoping the trend will help spur the next wave of post-recession growth. IT research firm Gartner estimated revenues from cloud services will be worth $150 billion by 2013.

McKinsey, in a report published Wednesday, said the technology could eventually deliver significant cost savings by reducing capital expenditure and enabling customers to use a pay-as-you-go model for their computing needs. But the firm cautions that outsourcing all their computing to a cloud service would currently be a costly mistake for many large corporations.

Using the model of Amazon.com Inc.'s cloud service, McKinsey said an actual customer, whose identity it didn't disclose, more than doubled the cost of technology by using a cloud service, compared with a typical corporate data center.

Hype around cloud computing is creating a "gold rush," McKinsey said, with companies piling in to offer competing technologies. But while the model offers significant benefits to smaller companies and business units within larger companies, the vendors are currently benefiting more than the customers.

Companies ranging from IBM Corp. to Microsoft Corp. and Google Inc. have all recently offered products and services geared toward cloud computing.

Some companies offering cloud services challenged McKinsey's findings Wednesday. IBM, which is pushing cloud services, said in an emailed statement that the report failed to consider that most companies would only use cloud services for a small portion of their technology needs.

Источник: Total Telecom

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