Is Cloud Computing a Cost Saver?


Cloud computing is gaining steam, but is it helping businesses save money? Our talented contributor Tony Kontzer penned a solid look at the next stage of cloud computing.

The cloud appears to have numerous benefits for IT shops and their companies, but one reader sounds a note of caution.

Diane from Florida says she's big on the cloud concept. There's a catch, though:

What we are finding is that the ROI/cost of ownership for clouds are much higher than our costs for purchasing and supporting a more traditional client-server application. The primary differences are, of course, the on-going monthly fees to cloud vendors vs. the up-front implementation fees and hardware purchases for client server.

Diane says her five-year analyses find SaaS having higher costs than client-server setups, so her emphasis shifts to functionality.

Cloud computing hasn't taken hold in every company, but with experts like Nick Carr pushing it, it's bound to see a major uptick.

But is it too expensive? Has your IT org found similar cost burdens as Diane?


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