iCloud versus eCloud

I had some interesting discussions last week about cloud computing. I've always thought that some of the arguments for cloud computing don't make sense. If you're a large business, for example, you probably have the same economy of scale that a cloud provider has. This means that you may be able to provide the same service at the same price, but as an internal cloud (iCloud) instead of as an external cloud (eCloud).

From what I heard last week, this is turning out to be true: some large businesses are finding that they can provide a cloud service just as cheaply as a cloud provider can. This doesn't mean that there's no reason for cloud computing. It just means that iClouds can be just as useful as eClouds, and might even be cheaper in some cases.

Comments

[icloud]

Try the eCloud, called http://icloud.com today ;-)

[john]

Luther,

I agree that some larger organizations may be able to produce cloud infrastructure at similar costs to external could providers. The challenge will be in evolving internal systems in to cloud structure efficiencies. One must consider ...

- Costs of developing the internal cloud against farming it out. Additionally, look at the costs of maintaing that cost efficiency over time as technologies evolve
- Expertise around building/operating as a cloud service. Do you have the right skills and discipline to achieve similar efficiencies and speed?
- Relation of the cloud service to the revenue drivers of the company
- Security implications of handling data internally vs. externally.

There was an AIIM discussion on this same topic last month. I have a link to that discussion on my blog (moving the bar). There is also an article (go small or go home) on the value shrinking to focus on core differentiators.