Three key differences in turn enable the sustainable strategic competitive advantage of public clouds vs privately managed enterprise data/cloud setup.
- On-demand Supply : they provide true on-demand services, by multiplexing demand from numerous enterprises into a common pool of dynamically allocated resources.
- High Scalability : large cloud providers operate at a scale much greater than even the largest private enterprises.
- Cost Saving : While enterprise data centers are naturally driven to reduce cost via consolidation and concentration, clouds — whether content, application or infrastructure — benefit from dispersion.
- Rule 1: Utility Premium to handle Spiky Load is always less than owning hardware to handle it.
- Rule 2: Ability to provision extra on-demand capacity is Cost of having On-Demand capacity Cost to have Ability to Provision Extra Capacity < Profit Made from Extra traffic
- Rule 3: Reallocation of resources at different peaks for different customers allows provider to deploy less total capacity.
- Rule 4: Aggregated demand from customers allows better utilization of infrastructure.
- Rule 5: Large volume purchase gives additianal cost benefits to Cloud Provider.
- Rule 6: Integrated Network Service can provide better security from large security attacks from hackers.
- Rule 7: Parallel processing of job can fasten Business Decision making.
- Rule 8: Latency can be improved by dispersing computing to multiple service nodes.
- Rule 9: Reliability can be improved by more Data-centers in across globe.
- Rule 10: Cloud Data-center location can be optimally chosen to keep cost low.
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