Mark Minasi's Tech Forum
Sign up Calendar Latest Topics
 
 
 


Reply
  Author   Comment  
cspanburgh

Avatar / Picture

Senior Member
Registered:
Posts: 263
Reply with quote  #1 
  • Being an independent consultant for almost two decades, I've met quite a few "IT managers:".  Perhaps you also have found that many of them started out as accounting folks.
  • Thus their preoccupation with "the Budget".    This "type" are often bottom liners and their success as IT managers is often their skill to keeping within their budget.
  • Not surprisingly they know little of technology.  I once spent a day of meetings with a very large international firm's "IT managers".   They had purchased over 80 off the shelf packages to solve their operating problems.  But they still could not get an accurate balance sheet.
  • All that aside, Microsoft's cloud approach seems to be made to order for these class of folks in the IT world.   
  • Why?   Because of the CapEx VS. OpEX option.
  • It's a matter of investment.
  • Capital Expenditures means spending cash on physical hardware up front and deducting that cost over time.
  • Operational Expense is spending cash on services or products now and getting billed for them now.   That cost can be deducted from the tax bill within the same fiscal year.
  • No upfront cost.  Or so one thinks.


You can see how this thinking grabs their attention.
But then they get the sticker shock.

So the question is:   Will the cost of public cloud be greater than the revenue generated by my data usage?  

Hard to say, when economies are so uncertain.

What do you think?



__________________
Curt Spanburgh
0
cj_berlin

Avatar / Picture

Senior Member
Registered:
Posts: 405
Reply with quote  #2 
Curt,

great to have you bring a 'near-topic discussion' to the table now and then :-) This is what we lack on this forum since the relaunch.

"Build or Buy" looks good on PowerPoint, but there's a lot of comparing apples to oranges going on there. Server virtualization has transformed from art to commodity, so running a VM is always a "Buy", even if you do it on-prem, whereas operating a VM (that is, OS and apps inside it) is always a "Build", even if you do it in Azure.

In my experience, the sticker shock gets the lift&shifters the most, i.e. managers who still think in servers and just decide to rent VMs in a public IaaS instead of buying the next generation of servers, storage etc. So basically, they "buy" form Microsoft or Amazon instead of "buying" from DELL + their own ops team. Publicly hosted VMs will probably always be significantly more expensive than internally hosted ones. Microsoft is trying to offset the sticker shock by selling entitlements, VMs allowed to be shut down etc. but on the bottom line, running 1000 server VMs in {Azure, AWS, GCP, Alibaba} will always cost you 100-150% more over 5 years than buying or even leasing those servers. And the cost of operating comes on top in both scenarios, but it's an OpEx item anyway.

On the other hand, IT managers who think in services rather than servers, will probably experience the opposite when they look at the number of developers they'd need to have on payroll just to keep their biz apps running while there are PaaS or SaaS offerings doing exactly the same thing for a monthly fee. This is a true "Build" vs. "Buy" comparison and here the business value of your data and aps comes into play. Infrastructure generally has no business value.



__________________
Evgenij Smirnov

My personal blog (German): http://www.it-pro-berlin.de/
My stuff on PSGallery: https://www.powershellgallery.com/profiles/it-pro-berlin.de/
0
cspanburgh

Avatar / Picture

Senior Member
Registered:
Posts: 263
Reply with quote  #3 
I agree with the reply.   In cloud discussions with "IT Execs" I have brought these issues up and in a polite way was told to be quiet.

I guess I was raining on someone's "Good Idea".   

I try to sum up my idea in a few words.

" If you are going to spend capital on cloud, you need a solid ROI".

Next thoughts, the power platform.



__________________
Curt Spanburgh
0
Previous Topic | Next Topic
Print
Reply

Quick Navigation:

Easily create a Forum Website with Website Toolbox.