{"id":926,"date":"2009-09-03T07:00:18","date_gmt":"2009-09-03T15:00:18","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=926"},"modified":"2009-09-03T07:00:18","modified_gmt":"2009-09-03T15:00:18","slug":"cloud-computing-meltdown-of-traditional-data-centers","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/cloud-computing-meltdown-of-traditional-data-centers\/","title":{"rendered":"Cloud Computing: Meltdown of Traditional Data Centers"},"content":{"rendered":"

Is it any wonder that new technologies like virtualization, SaaS and Cloud Computing are taking on Enterprise IT shops by storm?\u00a0 Traditional Enterprise IT data centers are out of control.\u00a0 The number of servers in data centers is doubling every five years.\u00a0 That makes a total of 11.8 million servers in data centers.\u00a0 But…\u00a0 data center servers are running only at 15% of their capacity.\u00a0 Those are the numbers from a NIST report sponsored by IBM<\/a>.<\/p>\n

And that is only the begining of the costs.\u00a0 $800 billion dollars are spent annually on purchasing and maintaining enterprise software.\u00a0 And of that, 80% goes just towards the maintenance and installation of that software.<\/p>\n

How does that compare to SaaS\/Cloud Computing?\u00a0 Gartner estimates that most enterprise datacenters could be operated at a tenth of the cost\u00a0 if moved to the cloud.\u00a0 The NIST report estimates that cloud applications could reduce the costs of running applications from 50-90%.<\/p>\n

Use of SaaS and cloud is resulting in improved efficiencies and dramatically reduced costs.<\/p>\n

Some interesting predictions from b-eye-network<\/a> around cloud computing are:<\/p>\n