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9.18.2013

Moving in-house or on-prem servers into the cloud - take 1: Cost Advantages

As detailed in an earlier blog post, the next "natural" step for in-house or on-prem server workload management seems to be "the move towards "servers or virtual machines as a service" in the cloud, either in a private cloud delivery mode or in a public cloud delivery mode". 

What are the main drivers for this and what are IT-departments and businesses looking to achieve?

One obvious driver or pull factor is the obvious ease of moving virtualised work loads or virtualized machines (VMs)  from on-prem hypervized servers and on to the the same hypervised set-up with IaaS cloud providers, for use in a private, public og hybrid use mode.

Another driver is the cost of delivery or TCO between on-prem servers/VMs versus multi-hosted cloud based ones.  BAIN & Company (www.bain.com) has a great illustration of this in their 2011 article "The five faces of the cloud" based on a IDC Worldwide Enterprise Server Cloud Computing 2010-2014 forecast.  Around 2010-2011 there was a shift in pricing of cloud based servers versus on-prem servers, with cloud-based servers for the first time achieving cost benefit compared to on-prem ones, projected to reach a 30-40% cost advantage in 2014.

In addition to cost advantges for cloud based VMs, there are numerous other advantages in the areas of more flexible workload management, provisioning time, VM flexibility and auto sizing, load balancing, recovery etc, that I'll try to cover in a upcoming blog post. 



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