3 strikes against the public cloud

If the IT department is a dinosaur — because public clouds deliver all the same services by subscription without capital investment — then why is it taking so long for the giant lizard to die?

Sure, there are winners on the SaaS side, like Salesforce and Google Apps, and Amazon has $10 billion-plus in annual revenue to brag about. But that amounts to a teeny slice of the global IT spend. What’s the holdup? What are the obstacles to public cloud adoption?

IaaS price points

AWS, Azure, Google Cloud, and other IaaS offerings all set their pricing in relation to running stuff as internal infrastructure. Take Elastic MapReduce or AWS’s managed Hadoop compute cluster. Does anyone actually use it and think, “yeah, that’s worth the money”? Would they think that even if the goofy bugs and idiosyncrasies were fixed? Remember, this is another service on top of AWS, so EC2 is a sort of base price.

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