Cloud Investigate

Cloud Computing and the Economics of Enterprise IT

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Executive Summary

Enterprise IT departments need to respond with agility to business needs and demand fluctuations, which existing data center architectures cannot achieve. Private cloud computing - highly scalable IT resources abstracted from an underlying infrastructure and provided as needed in a multi-tenant environment - has emerged as a prime vehicle for creating agile IT environments. Private cloud computing is not a solution for every organization, but close examination reveals that many businesses and even some industries are well placed to achieve its benefits: those spending a high proportion of their technology budgets on infrastructure and running applications on x86 platforms. Other leading indicators that affect the attractiveness of private cloud computing for a given business include workload predictability, security constraints, and licensing requirements.

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