Cloud Computing – Huge cost advantages

Excerpt from 12/2/08 Blog of James Hamilton of Microsoft Corporation

I’ve been arguing for several years that the utility computing pricing model and the ability to near instantly grow or shrink, make the move to the cloud inevitable. Google, Microsoft, Amazon, and numerous startups are all producing interesting offerings and all are moving quickly. Enterprises normally move slowly to new technologies but when the price advantage is close to 10x, enterprise decision makers can and will move more quickly. The weak economy provides yet a stronger push. It won’t happen at once and it won’t happen instantly but I’m convinced that in 7 years, the vast majority of enterprises will be using utility computing for some part of their enterprise IT infrastructure.

It reminds me of a decade and a half ago when nearly all enterprise ERP software was home grown. The price advantage of SAP, Baan, Peoplesoft, etc. was so great at the time that the impossibly difficult and slow move from home grown, internally written ERP software to packaged apps happened nearly overnight by enterprise standards. We see the same pricing advantage again with utility computing.

Cost advantage is even greater for small / medium businesses and Non-Profits. Google Apps “Standard” and “Education (Non-Profit)” versions can be obtained for a $0/month ongoing cost. A unique offering only Google can afford to make. Contact use to learn how we can provide that pricing via our www.GAFYD.net (Google Apps For Your Domain via the NET) offering.