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Bill Williams - The Economics of Cloud Computing: An Overview For Decision Makers

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The Economics of Cloud Computing

An Overview for Decision Makers

Bill Williams

Foreword by George Reese, author of Cloud Application Architectures

The decision-makers guide to cloud computing: from making the case to managing the transition

This concise book delivers the insight and tools you need to make intelligent decisions about cloud computing and effectively manage the transition to this new paradigm. Bill Williams explains how cloud computing platforms are transforming business IT and helps you fully understand the economies of scale and other benefits associated with the cloud.

Williams defines and explains cloud computing platforms and technologies, analyzes the costs associated with the IT supply chain, and (using industry standard metrics) creates a process for measuring the value of implementing cloud service models. He presents realistic and up-to-date ROI and NPV calculations comparing cloud strategies with conventional investments in owned/leased hardware. Through additional examples, he addresses costs and savings related to software licensing and disaster recovery/high availability, offering even deeper practical insight into the financial impact of cloud computing.

Writing for business leaders and in-the-trenches managers, Williams outlines the impact of cloud computing on the IT supply chain by contrasting legacy processes and systems with cloud computing implementations. To simplify deployment, Williams presents easy-to-use tables, a decision-maker checklist, and a comprehensive collection of additional resources for further study.

Understand todays leading cloud service and deployment models

Identify the major characteristics of cloud computing platforms

Use key performance/success indicators to measure IT performance and influence business strategies

Quantify the baseline costs of your current IT value chain

Use TCO, the payback method, ROI, NPV, and other metrics to justify cloud deployments

Calculate the total financial impact of migrating to the cloud

Place cloud computing in the historical context of technological revolutions

Recognize the long-term social and global benefits of cheap and ubiquitous computing

This volume is in the Network Business Series offered by Cisco

Press. Books in this series provide IT executives, decision makers, and networking professionals with pertinent information about todays most important technologies and business strategies.

Bill Williams: author's other books


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The Economics of Cloud Computing

Bill Williams

Cisco Press
800 East 96th Street
Indianapolis, Indiana 46240 USA

The Economics of Cloud Computing

Bill Williams

Copyright 2012 Cisco Systems, Inc.

Published by:
Cisco Press
800 East 96th Street
Indianapolis, IN 46240 USA

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher, except for the inclusion of brief quotations in a review.

Printed in the United States of America

First Printing June 2012

Library of Congress Cataloging-in-Publication Data:

Williams, Bill, 1970
The economics of cloud computing / Bill Williams.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-58714-306-9 (pbk. : alk. paper) ISBN 1-58714-306-2
(pbk. : alk. paper)
1. Cloud computing. 2. Information technologyEconomic
aspects. I. Title.

QA76.585.W55 2012
004.6782dc23

ISBN-13: 978-1-58714-306-9

ISBN-10: 1-58714-306-2

Publisher
Paul Boger

Associate Publisher
Dave Dusthimer

Business Operation Manager, Cisco Press
Anand Sundaram

Manager Global Certification
Erik Ullanderson

Executive Editor
Mary Beth Ray

Managing Editor
Sandra Schroeder

Senior Project Editor
Tonya Simpson

Copy Editor
John Edwards

Editorial Assistant
Vanessa Evans

Cover Designer
Sandra Schroeder

Composition
Mark Shirar

Indexer
Cheryl Lenser

Proofreader
Sheri Cain

Warning and Disclaimer
This book is designed to provide information about the economic impact of cloud computing adoption. Every effort has been made to make this book as complete and as accurate as possible, but no warranty or fitness is implied.

The information is provided on an as is basis. The author, Cisco Press, and Cisco Systems, Inc. shall have neither liability nor responsibility to any person or entity with respect to any loss or damages arising from the information contained in this book or from the use of the discs or programs that may accompany it.

The opinions expressed in this book belong to the author and are not necessarily those of Cisco Systems, Inc.

Trademark Acknowledgments
All terms mentioned in this book that are known to be trademarks or service marks have been appropriately capitalized. Cisco Press or Cisco Systems, Inc., cannot attest to the accuracy of this information. Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark.

Corporate and Government Sales
The publisher offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales, which may include electronic versions and/or custom covers and content particular to your business, training goals, marketing focus, and branding interests. For more information, please contact:

U.S. Corporate and Government Sales
1-800-382-3419

For sales outside the United States, please contact:
International Sales

Feedback Information
At Cisco Press, our goal is to create in-depth technical books of the highest quality and value. Each book is crafted with care and precision, undergoing rigorous development that involves the unique expertise of members from the professional technical community.

Readers feedback is a natural continuation of this process. If you have any comments regarding how we could improve the quality of this book, or otherwise alter it to better suit your needs, you can contact us through email at . Please make sure to include the book title and ISBN in your message.

We greatly appreciate your assistance.

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All other trademarks mentioned in this document or website are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (0812R)

About the Author

Bill Williams is a 16-year information technology veteran. Fourteen of those years have been with Cisco Systems, where he has held several leadership positions. Currently, Bill is a regional manager for data center and virtualization technologies, covering the service provider market segment. In 2008, 2010, and 2011, Bill lead the top-producing service provider regions in the United States and Canada. In 2010, Bill won the Manager Excellence award.

Bill attended the University of North Carolina at Chapel Hill and holds masters degrees from Harvard Divinity School and the UNC Kenan-Flagler Business School. Bill also holds U.S. Patent 7260590 for a content delivery application.

The Economics of Cloud Computing is Bills second book for Cisco Press. The Business Case for Storage Networks was published in 2004.

Bill lives with his wife and children in Chapel Hill, North Carolina.

Dedication

This book is dedicated to Lia, Isabel, Lee, and Catherine. To the Dream Team: Thank you for making it all worthwhile.

Acknowledgments

First and foremost, Id like to thank my manager and friend, Curt Reid, for his support and guidance throughout this process. Curt, your continued leadership and thoughtful insights will always remain priceless in my book.

To my team, the hardest-working people in show business, thank you for your tireless dedication to the task at hand.

A special thank-you goes to Toby Ford for his commentary and guidance in thinking through the longer-term impact of cloud computing. The world is waiting for your book, Toby.

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