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June 26, 2009


Marty Loughlin

To take your power bill reference a step further, we can be reasonably confident that "cloud" electricity is efficient. However, there is still the issue of inefficient consumption.

The same issue applies to companies leveraging cloud infrastructure. Plug cloud into a poorly run IT organization and you get a more efficient, poorly run IT organization.

Can cloud be successful without organizational transformation?

Nick Mehta

I like your point about clouds not just being external. The "external" versus "internal" thing is truly a red herring. It's just a question of economies of scale for a given company. If you are big enough to have a large number of apps and a great deal of infrastructure, an internal cloud may make sense and could be cost-competitive with the external providers.

William Louth

"And then there was the presumption that all clouds require fine-grain metering and billing. That statement flies directly with my personal experience in consuming other forms of shared infrastructure -- phone service, cable, internet, power, water, etc."

How does one run a business (especially a service based one) if you do not have fine-grain metering to determine cost drivers. How many people pay their phone bills without requesting itemization? You might as well just had over your money to Amazon or Google if that is the case. Metering also helps in migrating from one vendor to another as it allows you to cost the differences based on the rate plans of the alternatives which are to some degree based on common resource metering whether it is one to one is a different matter,

I think you might be merging billing and metering when in fact there are different. Billing is largely subscription based for such things are phones, internet & cable but metering is still be performed when the customer has access to this information and requires it for cost purposes. Someone is always metering someone else and in the future with more and more software being cloud service based what is being purchased is the interaction that you want metered and with competition on pricing this metering will be correlated with the metering of the underlying platform.

Cloud Computing – A Tale of Two Machines


I was not at the event so I cannot comment on how this was actually pitched but we have being pushing our activity costing & metering solution well before there was an actual cloud.

Chuck Hollis

William, you make good points, so thanks.

And, upon reflection, you're right -- fine-grained metering supports a variety of billing options which might be either fine-grained, or more simplified.

Thanks for correction!

-- Chuck

The comments to this entry are closed.

Chuck Hollis

  • Chuck Hollis
    SVP, Oracle Converged Infrastructure Systems

    Chuck now works for Oracle, and is now deeply embroiled in IT infrastructure.

    Previously, he was with VMware for 2 years, and EMC for 18 years before that, most of them great.

    He enjoys speaking to customer and industry audiences about a variety of technology topics, and -- of course -- enjoys blogging.

    Chuck lives in Vero Beach, FL with his wife and four dogs when he's not traveling. In his spare time, Chuck is working on his second career as an aging rock musician.

    Warning: do not ever buy him a drink when there is a piano nearby.

    Note: these are my personal views, and aren't reviewed or approved by my employer.
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