Chapter 16: Evaluating the Cloud’s Business Impact and Economics

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.

Learning Objectives

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 IT solution.
  • Describe supply-side savings made available through large-scale, cloudbased data centers.
  • Describe and discuss the efficiencies gained to providers through multitenant applications.
  • Describe and discuss the “right sizing” process.
  • Identify the primary costs of a data center.
  • Describe how Moore’s law relates to the cloud.
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Chapter 16 Pretest/Self-Assessment

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Chapter 16 Related Content

Microsoft Economics of the Cloud

Amazon Total Cost of Ownership Spreadsheet

Microsoft Windows Azure Pricing Calculator