Comments on: McKinsey: Data Centers Cheaper Than Cloud http://www.datacenterknowledge.com/archives/2009/04/15/mckinsey-data-centers-cheaper-than-cloud/ News and analysis about data centers, cloud computing, managed hosting and disaster recovery Mon, 22 Mar 2010 14:23:56 +0000 http://wordpress.org/?v=abc hourly 1 By: OPM http://www.datacenterknowledge.com/archives/2009/04/15/mckinsey-data-centers-cheaper-than-cloud/comment-page-1/#comment-3550 OPM Wed, 22 Apr 2009 15:02:09 +0000 http://www.datacenterknowledge.com/?p=9375#comment-3550 These guys have clearly never built a datacenter, the initial capital investment is not for everybody, it is massive, the data center or a virtual data center both have their applications, would Google, MS, or amazon run on the cloud, they might, BECAUSE FREE CASH matters.....but, Data Centers are cheaper than cloud...so cloud, as applied to MS and Google, must exceed 600M of investment....in my books, that's a lot of compute cycles and lowly utilized assets... These guys have clearly never built a datacenter, the initial capital investment is not for everybody, it is massive, the data center or a virtual data center both have their applications, would Google, MS, or amazon run on the cloud, they might, BECAUSE FREE CASH matters…..but, Data Centers are cheaper than cloud…so cloud, as applied to MS and Google, must exceed 600M of investment….in my books, that’s a lot of compute cycles and lowly utilized assets…

]]> By: felix figuereo http://www.datacenterknowledge.com/archives/2009/04/15/mckinsey-data-centers-cheaper-than-cloud/comment-page-1/#comment-3486 felix figuereo Fri, 17 Apr 2009 01:31:25 +0000 http://www.datacenterknowledge.com/?p=9375#comment-3486 As a small business owner, I must say, cloud has been a life saver. As our needs grow I am sure our options will too. As a small business owner, I must say, cloud has been a life saver. As our needs grow I am sure our options will too.

]]> By: Catalina588 http://www.datacenterknowledge.com/archives/2009/04/15/mckinsey-data-centers-cheaper-than-cloud/comment-page-1/#comment-3471 Catalina588 Thu, 16 Apr 2009 14:29:40 +0000 http://www.datacenterknowledge.com/?p=9375#comment-3471 Wish I had seen the presentation live. Recommend readers download it and review because it is spot on. The article above missed the key takeaway: enterprise datacenters need to rearchitect infrastructure with virtualization to drive much higher average utilization rates (10% today used by McKinsey, for example). Above a "magic", to-be-determined, enterprise-independent, cost-effective utilization rate of 60% (hypothetically), throw the excess workloads on the clouds and pay as variable operating expenses. Think of all the peak hour-capacity, monthly- and annual- job capacity that sits idle most of the time and could be moved, as needed, into the cloud -- reducing the daily operating loads and needed capacity substantially (i.e., materially). Wish I had seen the presentation live. Recommend readers download it and review because it is spot on.

The article above missed the key takeaway: enterprise datacenters need to rearchitect infrastructure with virtualization to drive much higher average utilization rates (10% today used by McKinsey, for example). Above a “magic”, to-be-determined, enterprise-independent, cost-effective utilization rate of 60% (hypothetically), throw the excess workloads on the clouds and pay as variable operating expenses.

Think of all the peak hour-capacity, monthly- and annual- job capacity that sits idle most of the time and could be moved, as needed, into the cloud — reducing the daily operating loads and needed capacity substantially (i.e., materially).

]]> By: Ky http://www.datacenterknowledge.com/archives/2009/04/15/mckinsey-data-centers-cheaper-than-cloud/comment-page-1/#comment-3461 Ky Thu, 16 Apr 2009 12:47:22 +0000 http://www.datacenterknowledge.com/?p=9375#comment-3461 The summary here is very simple...the cloud model is not for everybody. However, the headline is misleading and inappropriate ("Data Centers Cheaper Than Cloud"), which is not always true. --ky The summary here is very simple…the cloud model is not for everybody. However, the headline is misleading and inappropriate (“Data Centers Cheaper Than Cloud”), which is not always true.
–ky

]]> By: Chuck Goolsbee http://www.datacenterknowledge.com/archives/2009/04/15/mckinsey-data-centers-cheaper-than-cloud/comment-page-1/#comment-3454 Chuck Goolsbee Wed, 15 Apr 2009 23:16:30 +0000 http://www.datacenterknowledge.com/?p=9375#comment-3454 These guys get it. Both their analysis and definition are spot-on. If I were a startup with limited resources? Or if I'm focussing on building a business in "useless chatter" (ie a twitter-like, myspace-like model, where data is in constantly churning and changing and stuff from the day-before-yesterday is irrelevant) then I'd be all over the outsourced cloud for my needs. It scales and shrinks. I get that. But if I am a CIO in corporate America? No way. My data is critical. My data history is critical. My data integrity and audit ability is even more critical. I'd be building, or leasing my own datacenter, or if not large enough, I'd be buying colocation. --chuck These guys get it. Both their analysis and definition are spot-on.

If I were a startup with limited resources? Or if I’m focussing on building a business in “useless chatter” (ie a twitter-like, myspace-like model, where data is in constantly churning and changing and stuff from the day-before-yesterday is irrelevant) then I’d be all over the outsourced cloud for my needs. It scales and shrinks. I get that.

But if I am a CIO in corporate America? No way. My data is critical. My data history is critical. My data integrity and audit ability is even more critical. I’d be building, or leasing my own datacenter, or if not large enough, I’d be buying colocation.

–chuck

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