Cloud computing has high cost-saving potential for enterprises

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According to Gordon Graylish, Vice President of the Sales and Marketing Group and General Manager of the Enterprise Solution Sales division at Intel, the term “cloud” in cloud computing are being misused. He defines cloud as Software as a Service (SaaS) which provide services on a metered basis to lower service costs. He further explains that cloud computing benefits its users thanks to the combination of rapid application deployment rate and dynamic change of resources. In terms of data center, it means additional budget is not needed for the applications to be available. “I can increase the utilization of my data center from single digit to 60-70 percent…. The question is how I should get to it dynamically,” said Graylish.

The hype does not ensure mass adoption

There’s an undeniable hype surrounding cloud computing, but in fact its adoption is very little. CIOs are not wondering “why cloud?” anymore; it’s “which cloud?” now.

In Graylish’s opinion, it needs a bit more time to reach to the one true cloud that keeps promises of all savings and other advantages. He believes the move to the cloud should be a conscious effort led by the CIO or the CFO.  More information needs to be disclosed to more people when IT needs increase. Only budgets stay fixed. The CIO is required to lay out a road map, which specifies the way to achieve business goals, how to reduce power and redundancy costs by a modern and standard infrastructure with high adoption rates.

The increase in the rate of adopt server virtualization has been 1000 percent in the last year, despite low budgets and signaling better utilization. More companies are having strategic plans, with a global increase of 30-40%. Graylish believes the need for better data analysis and usage is growing. He uses the IT department at Intel as an example. This department has transformed from a service provider to the company to a business enabler, and the business is benefiting from IT skills, which ultimately will better benefit customers.

“First of all, we have done a poor job of helping identify the value of IT. It has a cost, but how do we quantify the benefits it generates? That’s about knowing the IT capability or maturity framework,” Graylish thinks.

Being able to answer this question will allow measurement of each IT initiative to find out which one is important. Graylish also suggests a framework which allow conversation with the CFO, so that the value that IT is delivering can be explained.

Intel’s Focus

In addition to adopting cloud computing, it’s equally important to emerge from old infrastructure. An example that Graylish uses is that, in India, enterprises will use clients as long as they are still running without realizing the costs for security or energy, or enterprise license. Meanwhile, although it takes less than 9 months to have payback for upgrading a 3-year-old infrastructure to a more modern set- which in turn will reduce costs of energy, software and even real estate by up to 90 percent – not many are setting foot on that path.

Cloud computing has high cost-saving potential for enterprises | admin | 4.5