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Enterprise IT Wins in Cloud Pricing Wars

  
  
  
iStock 000005442942XSmallIt wasn't that long ago that IT looked at cloud computing with more than a bit of mistrust, but that's been changing recently, and one of the reasons is cost. Cloud computing tends to be more cost-effective, and here's the thing. It just keeps getting cheaper.

The whole cost-benefit thing is still being worked out on the fly, as is typical in our quickly changing technology landscape, these days, but one thing is clear. As Charles Babcock pointed out in a recent Information Week story, last March within days of one another, Microsoft and Amazon announced steep price cuts to their cloud services and cloud costs continue to go down.

As a CIO or IT manager, cheaper overall costs have to have you wringing your hands with glee. Your budgets under control and everyone is happy, right? It also reduces your overall infrastructure costs and if you're using cloud services, it reduces overall complexity and eliminates the need for you to upgrade individual users. Everything is done on the cloud service provider end.

And over time, clouds services are commoditizing, which means as more competition enters the space, the overall cost of doing business is plunging. Everyone loves the idea of simplifying your operations of course (although there are still plenty of IT pros who see cloud computing as a conspiracy to reduce head count), but the people who control the purse strings have to like the trend from a cost perspective.

My feeling is that there is still plenty for IT to be doing, even while moving some functionality to the cloud. Companies still need guidance in their technology purchases, whether they are in the cloud or internal. You still need customization and you still have plenty of legacy systems to maintain, that for better or worse aren't going anywhere.

I'm betting you have a fair number of devices you need to support and those PCs that we are supposed to not need anymore, you probably still have thousands you're responsible for maintaining. Your team is not going to be bored just because some of your services get shuffled off to the cloud. They may actually have some more time to do everything that needs to be done in a large IT organization and gets neglected because resources are directed elsewhere.

If the price is getting cheaper to buy those services, all the better. Perhaps it means, you can free up some budget for some special projects you have been putting off for way too long.

So as the price of cloud services goes down, it can only have a positive impact on IT overall -- and for those IT pros who are feeling threatened by this shift? I wouldn't worry. You're probably more valuable than ever.
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