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The Economics of Cloud Computing: An Overview For Decision Makers

Chapter Description

In this chapter, Bill Williams explores the standard definition of cloud computing to establish a baseline of common terminology. Understanding the essential characteristics of cloud computing platforms, as well as cloud deployment and service models, is critical for making informed decisions and for choosing the appropriate platform for your business needs.

Conclusion

In this chapter, we explored the standard definition of cloud computing to establish a baseline of common terminology. Understanding the essential characteristics of cloud computing platforms, as well as cloud deployment and service models, is critical for making informed decisions and for choosing the appropriate platform for your business needs.

Additionally in this chapter, we introduced Michael Porter’s concept of the value chain and drew a comparison among IT infrastructure, application deployments, and manufacturing supply chains. These concepts are key components for understanding the costs (both CAPEX and OPEX) associated with traditional or legacy systems and the offsets potentially achieved by migrating to the cloud.

In the next chapter, we look at the business metrics most often used to measure the impact of technology adoption and implementation.

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