Tuesday, December 8, 2009

Mathematical Proof of the Inevitability of Cloud Computing

(Posted by Mona Masghati)

In the emerging business model and technology known as cloud computing, there has been discussion regarding whether a private solution, a cloud-based utility service, or a mix of the two is optimal. My analysis examines the conditions under which dedicated capacity, on-demand capacity, or a hybrid of the two are lowest cost. The analysis applies not just to cloud computing, but also to similar decisions, e.g.: buy a house or rent it; rent a house or stay in a hotel; buy a car or rent it; rent a car or take a taxi; and so forth.

Follow this link to continue: http://cloudonomics.wordpress.com/

1 comment:

  1. Nice analysis. However, in my opinion there are 2 things to consider : a) Most fast-followers address the "peak-to-average problem" by going in for virtualization technologies & b) per-unit costs of captive IT decrease with total capacity (at least in the mid-range). So YMMV. That said, as a rule of thumb, I agree that hybrid clouds are just about the best way of approaching cloud computing (IaaS/PaaS) for most mature IT organizations.