For example iaas storage services are sold according

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Unformatted text preview: he public cloud trade. For example, IaaS storage services are sold according to the number of gigabytes used. Vendors use a variety of technologies (compression, de-duplication) to reduce customer footprint, but base their prices on unreduced footprints rather than on the space data uses. Enterprises need to set up procurement systems, processes, and metrics that support not just procurement experts but also the average user. For example, it is common for developers to provision themselves with an Amazon virtual machine, use it for a while, and then forget about it. More importantly, they also forget that while they are not using it Amazon happily keeps charging for it. Architects and developers need to understand the cost implications of their actions Architects and developers need to understand the impact of IaaS and PaaS pricing structures on the software design choices they make. For example, a pricing structure that combines cheap compute resources with not-so-cheap storage resources should be met with applications that are processing-intensive but not overly demanding from a storage point of view (or at least compress data). It should not be the other way around, as this would go a long way towards neutralizing the cost savings that public clouds are supposed to deliver. Unfortunately, most enterprises are unaware of this issue. Even if they were, most would be unable to address it, as it would require re-engineering of their application lifecycle management processes. Similarly, developers can easily spend too much time fine-tuning their Amazon IaaS virtual machines instead of being more productive elsewhere. Commoditization is the name of the game – within limits Many believe that, driven by their underlying economies of scale, public cloud services are engaged in a race to the bottom that will depress prices and profitability across the IT industry. They are partly right, but will eventually be disappointed if they expect the impact of the trend towards commoditizatio...
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