Tag Archives: costs

Private Cloud: Benefits but Not a Free Lunch

As a result of ongoing discussions with IT managers and providers, Saugatuck has identified the increasing popularity of Private Clouds particularly among large enterprise IT organizations. In a recently published Strategic Perspective, Saugatuck offers guidance to any Enterprise IT organization considering a Private Cloud. Assessments are provided for areas of comparison between Private Clouds and infrastructure virtualization.

Saugatuck characterizes two basic factors to that make Private Cloud attractive to typical enterprise IT organizations: Continue reading

Estimating Cloud Resource Requirement

Attraction of Cloud IT offerings remains mostly based on the perceived potential of reduced infrastructure costs. However, the trade press and IT analysts provide minimal guidance on sizing Cloud resource for a workload. Saugatuck’s ongoing conversations with users have shown that Cloud IT cost estimates are typically based on gross and erroneous approximations rather than on measurements of performance.

Saugatuck recently published a Strategic Perspective which focuses on factors which heavily influence performance of a Cloud IT infrastructure and, thus, the ongoing costs of running a workload on the Cloud infrastructure: Continue reading

Maximizing Servers Per System Administrator: Saving Your Way Out of Business?

For decades one overriding mantra of IT has been that people are expensive and computers are cheap. The obvious conclusion that an objective for any IT organization should be to maximize the number of servers managed by each technical support staff member. A cursory review of articles in IT trade publications, IT analyst pronouncements, and Cloud vendor marketing hype, provides consistent evidence that the ratio of servers to technical support staff is anything but consistent.

In a recently published Strategic Perspective, Saugatuck has identified two categories of factors surrounding the ratio of servers to technical support personnel. We characterize these categories as:

  1. Primary/Input: These are “upstream” factors which directly influence the amount of manpower required to “manage/support” a server (i.e., the ratio of servers to technical support personnel); and Continue reading

Monitor Cloud Workloads to Avoid Unnecessary Charges

Adoption of Cloud IT offerings began and remains mostly based on the attraction of reduced infrastructure costs. Not surprisingly, the trade press and IT analysts provide considerable guidance on selection of Cloud offerings. However, ongoing conversations with users have shown that simply selecting a Cloud infrastructure offering does not ensure maximum ongoing savings.

Saugatuck recently published a Strategic Perspective which focuses on four factors which heavily influence the ongoing costs of running a workload on a Cloud infrastructure: Continue reading

Managing TCO Changes for Cloud IT Infrastructure

Heads up to our research subscription clients: Saugatuck has just published a Strategic Perspective that complements and extends the research and guidance presented in our recent (1187SSR, Understanding Cloud Infrastructure Costs: Navigating for Savings, 07Mar2013).

The fundamental motivation for this latest Strategic Perspective stems from an elementary business precept which holds that the best surprise is no surprise. Our objective is to provide sufficient insights and guidance regarding TCO models for Cloud versus traditional IT, so as to avoid surprises such as unplanned costs or inappropriate tradeoff between optional functionality and additional cost. Continue reading

Cloud Business Summit Panel Agrees: Cloud IT May, or May Not, Reduce Costs

The use of Cloud-based solutions is infiltrating all aspects of business IT – expanding both across enterprises and across user departments within enterprises. Similar to other technological advances, the risks and the rewards of Cloud IT vary for individual situations. A clear understanding of the popular perceptions about Cloud IT is the crucial first step toward objective evaluation and planning – and, away from project failure and management disappointment.

Note: Ongoing Saugatuck subscription clients can access this premium research piece (1149STR) by clicking here, and inputting your ID and password.

Saugatuck Research: Cloud TCO Considerations

Recently published Saugatuck research (1021CLS,Cloud Costs: Understand Vendor Pricing and Sum the Pieces, 07Feb2012) focusing on the true costs of running various workloads in the Cloud highlights two key facts that are frustrating IT buyers:

  1. Cloud pricing is not consistent. When investigating potential costs for running a workload in a Public Cloud offering, a factor which rapidly becomes apparent is the “granularity” of the potential server configurations. Some Cloud providers, such as IBM, and Rackspace, currently offer a number of pre-defined server configurations. Others, such as OpSource (Dimension Data) provide more granular flexibility – within limits – in defining a server configuration. Pre-defined server configurations have a tendency to create “stair-step” pricing models. Such models often result in purchasing more of one resource than is needed to attain the required amount of another resource.
  2. Workloads are not homogeneous. Most IT workloads exhibit common attributes – independent of the size of the enterprise – and, they consume resources ranging from IT infrastructure to personnel. The extent of resources consumed by a workload depends on factors such as the designed attributes of the workload, the volume of transactions or records processed, and the desired performance or throughput.When evaluating migration of a workload to a Cloud offering, it is critically important for IT organizations to have a solid understanding of the resources required – and, their associated costs for each of the Cloud offerings being considered. To enable an informed decision by IT management, all costs must be identified and sized.

Note: Ongoing Saugatuck subscription clients can access this premium research piece (1021CLS) by clicking here, and inputting your ID and password.