Tuesday, February 8, 2011

Finding Value in Cloud Computing – Part 8: OpEx Management

Organizations have learned that acquisition and implementation costs are only a small part of their total cost of ownership (TCO). To reduce and contain OpEx, prudent organizations are seeking to reduce management costs. The Cloud Computing paradigm reduces the physical IT estate, integrates service management tools, and enhances service management effectiveness. These reduce service management efforts and costs, and contribute to reducing and containing OpEx.

Organizations can achieve further OpEx reduction and containment through the service-orientation and SLA-driven aspects of the Cloud Computing paradigm. Composing applications from discrete loosely-coupled services reduces development, enhancement, and maintenance costs. Automating the dynamic management of fluctuating workloads and changing priorities reduces service management demands on costly professional resources. Service orientation and service level delivery leverage automation, process improvement, resource sharing, virtualization, economy of scale to reduce and contain IT OpEx.

__ Joseph Starwood (www.linkedin.com/in/JosephStarwood)

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