Thoughts: The Hidden Waste and Expense of Cloud Computing

Article: http://www.wsj.com/articles/the-hidden-waste-and-expense-of-cloud-computing-1424139032

Technology has always been a bit of a black box for corporations; people only focus on it when it begins to disrupt the day-to-day operations. The reason that it’s so hard to maintain a working knowledge of the company’s IT resources is because it changes so quickly. Just 30 years ago, it was mainframes used by large financial firms. 20 years ago, it was on-site computers. 10 years ago, it was databases stored still on-site. And now, it’s data centers and the cloud.

Computing’s evolution, however, is no excuse to not focus on IT as an integral part of a company’s strategy. If it is mismanaged, IT could become bloated and expensive. In an age where data management is becoming easier to visualize, enterprises need to pay for only what they use. This type of active IT management is good both for an expense policy as well as power and security management (both adjacent costs).

But what does this really mean? Moving forward, companies will continue to cut costs. This will mean either it will implement an IT management app / program (see ScienceLogic’s recent Series D of $43m) and/or storage companies (Equinix, AWS) will become more proactive and transparent of the costs. The stupid money is still here, but it won’t last.

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