Reply to post: Growth and Business Value Add

Michael Dell? More like Michael in-Dell-nial: No public cloud, no future

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Growth and Business Value Add

@ Steve Chalmers said:

"is just the endgame for x86 processors, in server storage, and cheap networking, delivered not just with an extraordinarily sharp pencil on equipment cost, but also with extraordinary automation and economies of scale on the management side, beyond what Enterprise was ever able to achieve. But doing this has required investing an enormous level of capital in a narrow way of doing business, which will have to stay in place for a long time to earn the shareholders a proper return on that investment."

Steve is effectively backing into Chris's arguments from the article. So although it is true, as some comments on this thread have suggested, that public cloud is not always the right model (e.g., consider HPC environments with large numbers of servers running 99.999% utilized for 5 years), public cloud scale and automation go far beyond what can be achieved by any enterprise IT department on its own. The field is littered with the carcasses of internal-IT-owned OpenStack "cloud" projects that were never truly completed and cost a fortune in time, lost opportunity, and manpower. Only very large, profitable companies with either an in-place cloud for their own business (i.e., Amazon, Google) or a platform franchise (i.e., Microsoft in OS/middleware, Oracle in database/applications) that can be used to subsidize long-term cloud development *at scale* will be able to build real, competitive public clouds.

And a question for all the infrastructure folks who responded with some "math" on how they can roll--their-own so much cheaper than some public cloud vendor. If that's true, then why is the public cloud growing at 30-50% while the on-prem IT market is slowly shrinking? And that's just IaaS. If you add SaaS, vendors like Oracle are seeing >80% growth rates year-over-year. Perhaps your CIO and VP of IT has finally figured out that roll-your-own infrastructure IT is a recipe for overstaffing, complexity, downtime, and poor ROI.

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