Analyzing Capacity, Usage and Cost: Getting the Most of Cloud Computing
By David Tobia
August 20, 2012
August 20, 2012
- Irish start-up CloudVertical has been analyzing how customers use Amazon Web services, VMWare and Heroku and concludes that most companies do not come close to fully leveraging the resources they pay for.
- CloudVertical CEO Ed Byrne explains that the problem does not affect one demographic, but rather “from companies spending less than $50,000 a year to those spending millions, people are only using about 30 percent of the resources they pay for.”
- “This is really remarkable considering that for the past decade, the sales pitch for virtualization has been ‘physical servers only get about 30 percent usage,’” he notes.
- Byrne recommends that CFOs analyze “capacity, usage, and cost” to effectively determine if they are making the most of their cloud storage options. “The cloud is not pay-as-you-go but pay-as-you-provision. People still fire up lots of servers and leave them there,” he says.
- According to Google, most CFOs think they are effectively using the cloud, as 58 percent of surveyed CFOs said cloud computing reduced IT costs and 96 percent reported quantifiable benefits from cloud computing (VentureBeat cautions that the second number may be skewed by the fact that Google included Gmail under its definition of “cloud services”).
- Byrne hopes CloudVertical can help solve the “lack of transparency and accountability” present in the cloud computing marketplace. “Most often compared to Cloudability, Byrne insists that CloudVertical’s real competitors are enterprise tools like IBM’s Tivoli or HP OpenView,” reports VentureBeat.
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