This is where I have to chime in. Based on my research and experience with Cloud Computing I think you are right in the “Will it benefit my Internal IT”. I have watched this group talk admirably about Clouds but only in the sense of Web 2.0 clouds , application frameworks and some on Content based storage. As the conversations have matured with the influx of new ideas from people over the Financial and Security implications that a cloud has but still the onset of the Web 2.0 and the avenue that real time data can’t be achieved in a cloud. I believe you are on the verge of that evolutionary leap, we are on that edge of a financial need to pool our resources and compute power. We are on a skilled labor need for the specialization necessary for running a virtualized environment. As well as a “green” need for not being affected by Financial Markets of Gas and Energy. We have went over may times that the general cost of a server is not in the hardware but in the software stack and the administration of the devices, the up keep and maintenance of the environment. So I disagree that a cloud is no better than a colo because of the other support infrastructure ,the Hypervisor costs and the HA/BCP nature of the end product that you receive does allow you to gain these things. Now with that said it’s not there today based on the constant comparison of what an Enterprise Cloud (a controlled Virtualized environment ) is verse a Web 2.0 cloud (Google,AWS,Azure,C3). I have seen posts on this thread that are articulating the Enterprise cloud and there are only a few vendors and post s that support this conversation where I believe for SMB and Enterprise the Enterprise Cloud requirements need to be brought to light and implemented so we can have that ubiquitous “IT as a Service” infrastructure and all benefit because the innovations and isolation technology will benefit all on that cloud verse having to come out of one single companies budget.
“The Theory of Cloud Relativity” by Jaymes Davis
Cloud Relativity is an emerging movement of the current industry where the Taxonomy of the Datacenter will change based on the inflection based technology of virtualization. The Idea that Consolidation based on Moore’s law will continue to perpetuate and the propensity for bandwidth will continue to following Gliders law. I have created a formula to allow us to easily ascertain the cost of going to an internal cloud (Virtualized environment management by internal Staff) 
or an external cloud 
. The theory works by figuring the variables against their subsequent formulas to come up with a mathematical figure to replace the values.
V= Virtualization hypervisor ( speed of proc X # cores) = speed of socket (A) / Guest Usage & Consolidation aspect ratio = (A X % of usage .20) 
100 Consolidation per socket = A1 / A1 
The number of machines you want to consolidate = A2 / create cost for sockets ( Hardware cost Socket number ) + (Hypervisor Cost per socket)= A3 / A3 X A2 = A4 / memory is a component of this formula ( Guest memory requirement X # of Guest) = B / (B Dimm Density) = C x Cost per DIMM= D1)/ A4+D1= V
S =Storage for the Environment X .20 for snapshots and growth Cost of San with Replication / As well factor in Bandwidth cost for replication if used for DR
S =Security / Break down Security products cost per socket = (S2 X A4)
M = Management tools / All management tools by Socket = (M X A4 )
This allows all of the variables to be replaced with numerical figues and then squared to provided true 1:1 redundancy
Now taking this variable to the external cloud
There is only a Hosting compute cost that replaces A3 in the V formula and the Storage per GB cost replaces the S2 value because it are not 1:1 anymore as well as the M value will not be 1:1. This answer will highlight the cost in a quick apples to apples way. This does not account for growth efficiency as well as does not get into the overall administration decrease but does look at it from an enterprise workload perspective emphasizing per socket consolidation. Business continuity and Disaster recovery is built-in cost as well as support infrastructures can be outsourced as well in the 1st and 2nd tier delivery.
The Enterprise Cloud is the future that I’m working towards where enterprise workloads can be secure and function in the cloud bringing down the Capex/Opex for the virtualized environment as well reducing the barriers of adoption for SMB to build a successful Startup as an example with the burst ability of the cloud and the Enterprise redundancy and power.
From: cloud-computing@googlegroups.com [mailto:cloud-computing@googlegroups.com] On Behalf Of Tarry Singh
Sent: Wednesday, December 17, 2008 11:14 AM
To: cloud-computing@googlegroups.com
Subject: [ Cloud Computing ] Re: Gartner: Will Cloud Displace Internal IT Services For Data Centers?
@Ray
Really cool on that 1000 servers/1 hour pitch. How do you do that? I'd love to know from you. I know that many of our competitors run in bids with such arguments. I am curious what does that 1 hour fire up 1000 servers replace and more importantly how?
Tarry
On Wed, Dec 17, 2008 at 5:29 PM, Ray Nugent <rnugent@yahoo.com> wrote:
No you're missing the point. How long does it take you to spin up a 1000 server system in a colo? What are the costs of doing that activity? In my colo you can get your 1000 servers installed, cabled, powered, secured and configured in less than one hour. If you see no value in that then I think we're talking about different things entirely...
From: "Pietrasanta, Mark" <Mark.Pietrasanta@aquilent.com>
To: "cloud-computing@googlegroups.com" <cloud-computing@googlegroups.com>
Sent: Wednesday, December 17, 2008 6:32:11 AM
Subject: [ Cloud Computing ] Re: Gartner: Will Cloud Displace Internal IT Services For Data Centers?
But again, it seems like people are missing the point:
1) Cloud Computing, at least in any of its current and pending forms, does almost nothing to reduce my internal IT staffing needs. It's no better than Co-Lo in terms of IT staffing requirements;
2) CC is more expensive than *any* of the alternatives, except in fringe cases (e.g. those with extremely volatile volume changes, and academic/research/"super computing" needs)
CC can't possibly replace internal IT services until CC *offers* some form of IT services. And the costs have to come way way down before it becomes a realistic alternative to Co-Lo (or for the small business, setting up a machine under their desk and hiring a college kid to manage it).
From: cloud-computing@googlegroups.com [mailto:cloud-computing@googlegroups.com] On Behalf Of Krishna Kurapati
Sent: Wednesday, December 17, 2008 9:18 AM
To: cloud-computing@googlegroups.com
Subject: [ Cloud Computing ] Re: Gartner: Will Cloud Displace Internal IT Services For Data Centers?
My View:
It also depends on size of organization. For SMBs, Core applications as well as non-core applications (if any) will shift to Cloud/SaaS model.
And with recent financial turmoil, many large companies became medium and medium became small :)
Any organization adopting cloud would be security/compliance, availability/accessibility.
and portability/migratability.
These requirements overweigh cost advantages depending on the vertical they play into.
Krishna Kurapati
Cloud Ventures
On Wed, Dec 17, 2008 at 3:37 AM, nagarajansankar@gmail.com <nagarajansankar@gmail.com> wrote:
Here is an interesting article that appeared yesterday.
http://www.informationweek.com/blog/main/archives/2008/12/gartner_will_cl.html?catid=cloud-computing
My take is that possibly Non-mission critical or Non- revenue
generating applications (the so called departmental applications) in
enterprises that may form about 20 to 25% of the total IT
infrastructure and services may find their way to the clouds..
Do share your thoughts...
- Sankar
http://www.linkedin.com/in/nsk007
--
Kind Regards,
Tarry Singh
______________________________________________________________
Founder, Avastu: Research-Analysis-Ideation
"Do something with your ideas!"
http://www.avastu.com
Business Cell: +31630617633
Private Cell: +31629159400
LinkedIn: http://www.linkedin.com/in/tarrysingh
Blogs: http://www.ideationcloud.com
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