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Mosso: The Hosting Cloud » Blog Archive » McKinsey Misses The Bigger Point On Cloud Computing blog.mosso.com
The report has some good thoughts in it, but overall, they are missing the bigger point and underestimating the benefits of cloud computing.
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Abstracted hardware
Purchased as subscription (opex over capex)
Elasticity – easy up/down
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Pooled computing
Powered by software
Delivered over the web
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distinction between infrastructure and applications
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McKinsey just combined the first two.
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The report is clearly a back-of-the-envelope view (honestly the data is hard to analyze because there are many inconsistencies and odd unexplained assumptions) and meant to shock.
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Their own math does not even work to prove this assumption.
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While the “promise” of the cloud is outlined, the benefits have no role in the economic analysis.
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Does it make sense for non-IT companies to be outstanding at computing operations?
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Does putting 100’s of millions of dollars into DCs and people to support servers have anything to do with the core mission of most companies?
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The ability to consume it effectively as a service means you can offload it and focus on your core.
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I hold the hype is real because of this opportunity for focus plus it is radically cheaper than most companies can do it themselves.
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The cloud is not ready, too expensive, and easy to replicate, they claim
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“To-Do’s” For Web Designers
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