It is common wisdom that the main driver for organizations to move to cloud is speed, not cost. Speed to provisioning, the flexibility, ability to allow for bursts, IT agility, etc.
Despite the “need for speed”, cloud services remain hard to tap into for large corporations with huge legacy compute facilities. And why would they want to anyway? They already have scale in their own datacenters and they fear that the cloud may introduce bunches of security and compliance headaches they don’t need. I recently attended an event with many CIOs of banks, insurance companies and other large organizations.
They all told me that their “internal” prices were lower than what cloud would provide, unless they had workloads that they could turn on and off and take advantage of the minute by minute accounting of the cloud. Since most of their workloads are 24×7 this does not really apply to them other than perhaps in development and test situations. [...]
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