April 16, 2009
Is adopting the cloud a money-losing mistake?
Andrew Nusca writes that according to research from McKinsey & Co., adopting a cloud-based solution strategy may actually cost more than it’s worth. Read more here.
“The McKinsey study, ‘Clearing the Air on Cloud Computing,’ concludes that outsourcing a typical corporate data center to the cloud would more than double the cost. The study uses Amazon’s well-known Web Services as the model for the price of outsourced cloud computing. According to McKinsey, the total cost of the data center functions would be $366 a month per unit of computing output, compared with $150 a month for the conventional data centre.”
“(Nokia) saw net profits down by 90 per cent in the first quarter of 2009 compared to last year, though the company blamed de-stocking for some of drop. Looking ahead, the firm said it expected mobile device volumes to be up ‘slightly sequentially’ at best, with full year volumes down 10 per cent on 2008. It said it expected to increase its own share of the market.”
“’That’s our first touch product, and you know nobody gets it perfect out the door. You know other companies were having problems with their first releases.’”