TCO for Cloud Computing
- February 06, 2010
We already saw what is Total Cost Ownership of a Data Centers. Cloud Computing a new kind of technology which is being considered as the future of hosting and web world. Cloud Hosting has got many advantages over other traditional hosting services like VPS hosting, Shared Hosting or dedicated server hosting.
Cloud Computing being a bit more economical then other hosting services so it will be more loved in developing countries and Data Centers Services India will try to bring Cloud Servers in their specifications as soon as possible. So lets understand the Total Cost Ownership on Cloud Computing. TCO for a data center is different from TCO for Cloud since Cloud is completely different from other services offered by data centers.
When you are running your business on some external cloud it is better to calculate the TCO required to run your business in external cloud as compared to the whole infrastructure. If the data center is insufficiently utilized then you will loss a lot of money. Mainly losses will be in Operation Exchange ( support staff, power, energy e.t.c.) and Capital Exchange (hardware requirements of the servers).
Compare Infrastructure with Cloud Costs
How do you face the situation of over or under utilization? What costs are associated in running unoccupied server? What are the possible risks associated with over utilization? The question of over utilization is tricky as one side each company want to grow their business and sell as much as they can thus increasing utilization. But on the other side it is believed to be a good option to save some capacity for your future developments or in any urgent situation.
If you have many colocation servers then this situation gets more complex. This situation cannot be measured in rupees or in any other currency as it depends on the costs and risk implicated in the case your service goes down.
Calculate the TCO for the whole infrastructure or for the part of your business which you are planning to be hosted on cloud. One you calculate TCO for your data center then only you can transform your business into utility computing model, which further can be compared to typical cloud services.