A Skeptic’s Take

Whatever your view of the cloud, a little perspective goes a long way.

Cloud computing? “I think it’s a lot of hype,” he says during a recent interview in the company’s midtown Manhattan office. “Time sharing made a lot of sense when computers cost $3 million in 1970, but now they’re commodity items that anybody can buy.”

I went straight from college into the timesharing business. It was a license to print money until PCs arrived in the mid 80s.

Yes, but with the likes of IBM, Oracle and Microsoft joining Amazon in the public cloud game, won’t that kind of processing capacity be available cheaply and on demand? “You can buy one of these servers for $500 and have it under your desk,” Goodnight responds.

Note that is much cheaper than the typical $2-5,000 PCs cost in the 80s. Of course hardware isn’t the main cost anymore. The big money is in the application software, and the really big money in the professional services required to make application software work.

Jim Goodnight is a CEO with more than 30 years in the same job, he recognizes hype when he sees it. The hype is that cloud is somehow new and magically cheap. It really is timesharing packaged under a new exciting label. The true cloud play has to do with price – the old rent versus purchase choice. If you live in New York City, parking costs more than the price of the car – rental may be a better option. If you live in the suburbs parking is free, rental is not as good an option. When you consider your cloud options, be a skeptic with Jim Goodnight and evaluate the true costs. For example data backup and the need for offsite storage / retrieval of backups may make cloud backup services a better option. ERP with a 7-10 year lifespan and the need to control your data may make on premises deployment a better option. At HarrisData, we are happy to provide both cloud and on premises options to our customers. The customers, not the hype, determines which option is best in each instance.

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