Financial Planning and Cloud Computing
Last month on the 3rd anniversary of the launch of Amazon Elastic Compute Cloud (Amazon EC2), Werner Vogels, the CTO of Amazon, said, “It is amazing to see the impact this service has had on the industry. It is truly disruptive technology and its impact has reached far beyond a pure technology offering as the benefits of the cloud have changed the way we view IT Infrastructure.”
I guess it’s not exactly news that software companies are embracing the cloud, and its impact shows up in small but telling ways. I was looking at a set of projections one of my clients sent to us and one small expense line stood out. It was a $250 monthly charge increasing by $250 in about four-month increments. The $250 was what it cost him to fire up another virtual server at Amazon as his SaaS client base grows by a few hundred subscribers. Now think back a few years, or if you’re old enough think back 30 years or so to the time-sharing days, and consider how you used to plan for datacenter growth.
You’ll find Werner’s blog about EC2 here: http://www.allthingsdistributed.com/
Posted by WilliamMontgomery, Senior Vice President on 15 September 2009
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