EMC World 2011
Tags: Cloud Computing, EMC World 2011, VMware
EMC World 2011 is taking place in Las Vegas this week, and Paul Maritz, of VMware fame, delivered a key note covering how to decide which cloud solution to invest in. As detailed below, he shows how cloud metrics help CIOs build a business case for their journey to the cloud thereby helping to decide which type of cloud to invest in.
“One of the biggest challenges to adopting cloud computing is gradually being overcome as customers start to get access to credible metrics they can use to quantify the benefits of moving parts of their IT infrastructure to the cloud.
Such metrics not only can help businesses determine whether to move to the cloud and which clouds may be best for their applications, they can also help businesses determine how best to offer services to their customers” said Paul Maritz, VMware president and CEO.
“VMware, for instance, estimated that it costs the company 6 cents per hour to run a virtual machine, and that its processors are running at about a 60 percent utilization” Maritz said. “The company can compare this to a rate of between 2 cents and 20 cents per hour at different cloud organizations, depending on the size of the virtual machine to understand where it stands.
IT departments can also use these metrics to talk to consumers of its technology to determine whether the cost of using internal resources justifies their use, or whether a new service should be outsourced to an external cloud. While both IT administrators and end-users will benefit from cloud computing, one of the primary challenges to the move has been the lack of metrics that could determine the return on investment in cloud computing, or determine which type of cloud in which to invest. But that is changing.”
Instead of a single metric, Maritz said that measuring the benefit of cloud computing can be determined by answering such questions as what is the cost of provisioning a single virtual machine, how long does that provisioning take? What is the cost per GB of storage? And how much does it cost to provision an email box?
These are all data points a CIO could provide a user, who could then compare to the expected costs of working with another cloud such as one from Amazon (NSDQ:AMZN) or Rackspace. “Now for the first time, we have a standard of measure” said Maritz.
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