Cloud Computing Suited for SME than Corporates

by CXOtoday Staff    May 22, 2009

Cloud computing like any other software has its own merits and drawbacks. A comprehensive assessment of the value and disadvantages of cloud computing for any individual organization should pay more attention to risk analysis. As per the analysis findings of the McKinsey cloud computing report agree that external cloud computing is today more suited to the needs of small and medium enterprises (SME) than large corporations.

McKinsey analysis reports seem to be that one should beware of hype (with frequent references to the Gartner hype cycle), and that cost savings from cloud computing may be smaller than hoped for and even illusory.

It is hard to disagree with these observations, but they are not very helpful in the real world, because while true they are very incomplete and fail to mention other equally if not more important observations.  Nor do they cover countervailing examples that may be more relevant to some and perhaps even to many organizations.

Nevertheless, the finding that external cloud computing is today more obviously suited to the needs of small and medium enterprises than large corporations is reasonable. Cloud computing do promise very attractive not previously available capabilities, thanks to today’s online broadband and internet-technology-dominated world, in which increasingly powerful generations of processing and storage hardware succeed each other rapidly.

However, some of the basic business issues that must be addressed in considering cloud computing remain the same as in previous generations of ICT.

For example, external cloud computing inevitably involves critical dependence upon broadband networks. To mitigate concerns about unavailability Google has now made it possible to access Gmail off line during periods when online access may be impossible, whether as a result of a problem with Gmail itself or the unavailability of telecommunications.

Analysis report indicates that the McKinsey article does not shed much light on many key questions, not all of which have been mentioned here, that need to be addressed in a practical, serious, value- and risk-, and not just cost-driven assessment of the role cloud computing services (whether internally and/or externally hosted) should play (or not) for a specific business or organization.

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