Chapter 16: Evaluating the Cloud’s
Business Impact and
So far, you have learned that the cloud is bringing with it new business
models and economics. Large companies are saving costs, reducing staff,
and improving system scalability by moving from on-site data centers to
the cloud. Small companies are leveraging pay-on-demand models to
“right size” their computing needs quickly and cost effectively. The cloud
business model and its economic opportunities for all businesses, large
and small, is the subject of this chapter.
This chapter examines the impact of the cloud business model on businesses
and the resulting economic opportunities. By the time you finish this
chapter, you will be able to do the following:
- Discuss the total cost of ownership for an IT solution.
- Compare and contrast the capital expenses and operational expenses of an
- Describe supply-side savings made available through large-scale, cloudbased
- Describe and discuss the efficiencies gained to providers through multitenant
- Describe and discuss the “right sizing” process.
- Identify the primary costs of a data center.
- Describe how Moore’s law relates to the cloud.