The Economics of the Cloud

This 22 page report dives deep into the dramatic change reshaping the technology industry - cloud computing and how and why we're moving in this exciting new direction

Today, IT is experiencing a shift from the traditional client/server to the cloud. Going forward, businesses and other organizations will look to consume and deliver IT as a service. Cloud promises to make IT not just cheaper, but also faster, easier, more flexible, and more effective.

Computing is undergoing a seismic shift from client/server to the cloud, a shift similar in importance and impact to the transition from mainframe to client/server. Speculation abounds on how this new era will evolve in the coming years, and IT leaders have a critical need for a clear vision of where the industry is heading. We believe the best way to form this vision is to understand the underlying economics driving the long-term trend. In this paper, we will assess the economics of the cloud by using in-depth modeling. We then use this framework to better understand the long-term IT landscape.