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Cloud Computing: Meltdown of Traditional Data Centers
Is it any wonder that new technologies like virtualization, SaaS and Cloud Computing are taking on Enterprise IT shops by storm? Traditional Enterprise IT data centers are out of control. The number of servers in data centers is doubling every five years. That makes a total of 11.8 million servers in data centers. But… data center servers are running only at 15% of their capacity. Those are the numbers from a NIST report sponsored by IBM.
And that is only the begining of the costs. $800 billion dollars are spent annually on purchasing and maintaining enterprise software. And of that, 80% goes just towards the maintenance and installation of that software.
How does that compare to SaaS/Cloud Computing? Gartner estimates that most enterprise datacenters could be operated at a tenth of the cost if moved to the cloud. The NIST report estimates that cloud applications could reduce the costs of running applications from 50-90%.
Use of SaaS and cloud is resulting in improved efficiencies and dramatically reduced costs.
Some interesting predictions from b-eye-network around cloud computing are:
- Companies will mix the use of private and public clouds
- Organizations and lines of business in the company will bypass their IT and directly secure SaaS applications
- IT budgets will move from CAPEX to more OPEX, opening the door for immediate IT investments
- There will be a transformation from programming to service integration and customization
- Infrastructure vendors will lose contact with many enterprise customers as they find most of their business is with cloud infrastructure and SaaS
