13 years, 9 months ago

Summer full of Clouds…..or?

Link: http://eamitabh.blogspot.com/2010/08/summer-full-of-clouds.html

The Cloud offering space is getting rather busy as we expected this summer. Capgemini annoucement of “Immediate” and its pilot with Royal Mail, closely follows other major developments such as IBM’s acquisition of Cast Iron. While IBM claims to get better in enabling business agility by adding industry leading cloud integration capabilities, the Capgemini offering promised true pay-as-you-go cloud solution.

This obviously comes back off the development at Fujitsu where we signed a deal with Microsoft on their Azure platform. This indeed sets up a fascinating summer of cloud developments. I expect a few more moves from big players in the industry in cloud space. Indeed it is a summer full of clouds! And CIOs and the CTOs at end user organisations must be spoilt for cloud technology choice!

Oh but if the cloud is such an attractive consumption model then why do enterprises such as Eli Lilly are not extending their current contracts for cloud services with Amazon?

Adam Selipsky, vice president of Amazon Web Services thinks that he knows the answer. “What’s happening is, in some cases customers who are not yet comfortable are coming with very risk-averse profiles and therefore some contractual requests which, frankly, they aren’t making with their traditional vendors,” as he quotes in an article by Nancy Gohring, IDG News.

“Many enterprise customers are used to buying technology resources under fixed contracts that include substantial up-front investments, he noted. If a company is doing a contract that will cost hundreds of millions of dollars over a decade, “in some cases you’d see significant liability provisions in place,” he quotes in the article.

“To then move to a world where these IT resources are consumed simply on a pay-as-you-go basis with no up-front commitment, no capital expenditure required… in situations like that, consumers of these services and vendors need to have liability arrangements that make sense in that environment,” Selipsky said. “It’s a question of different environments and different arrangements being appropriate given the particulars of each situation.” Complete article on eli Lilly / amazon issue can be accessed on PC world Business Center blog.