October 19, 2009

IDC Says Cloud Computing Used as a “Stop-Gap”

Article Source insideHPC
October 19, 2009, 6:10 am

The IDC recently spoke out that businesses should only use cloud computing as a “stop-gap” measure to help them survive cost pressures during the recession.  According to their research, cloud computing services only provided short-term cost savings. The research also highlights that within three years of implementing software as a service measures, large businesses regularly found the costs of doing so to exceed that of running their own gear.

Cloud costs need to come down much further to be a realistic long term option,” said Matthew McCormack, IDC analyst, at the company’s recent Cloud Computing Summit in London. “It could be useful in the short term financially for companies with severe cost overruns.”"Your datacentre would have to be really poorly run for it to be more expensive than cloud in the long run,” he added...

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