Cloud Computing – hype or serious business?

cloud hypeI’ve just about had it with all of the cloud hype being generated by everyone trying to sell something by riding the cloud computing wave. Here’s what I’m talking about. I’m trying to relax on a Sunday afternoon and I see a car commercial touting their new interior control consol that is cloud based. Yes, a car company is defining cloud computing as something that helps make a bunch of overpriced gadgets in a car run. Seriously! Like cloud computing is a value add for cars. Enough of the hype.

According to Gartner’s Technology Hype Cycle released in July of 2011 ( there is certainly enough hype to make your head spin and were right in the thick of it. So here’s the reality. Cloud computing is old technology with new possibilities which is creating a new opex business model as it relates to IT spending.

The hype I hear most about cloud computing is – that it’s going to save businesses money. The truth is – cloud computing will most likely cost you more in the long run. Here’s why I believe this. Years ago when laptops were the craze because “with a laptop you could do more and replace your PC because you could work from anywhere”. Did people replace their PC’s with laptops. No, they had a PC and a laptop. The same held true for s
martphones and now tablets. We’re told that if you invest in these things you can do more with less cost. Really, I don’t think so. Most business owners and execs have a PC, laptop, smartphone and a tablet. Does having 4 devices cost less? Does IT support cost less for supporting 4 devices, than it does 1?

Do owning these wonderful pieces of technology help you be more productive and possibly more efficient? Sure, if you use the technology right. You see if something gives you more value you will most likely pay more for it – not less. It’s no different with cloud computing. It promises to bring businesses greater productivity, scalability and agility, while keeping your CapEx available for other business objectives that need the working capital.

So I’ve had it with the “cloud saves you money” hype. If your looking into cloud computing for your business I would encourage you look at the business value your getting and not focus on the savings.

Don’t get me wrong, cloud computing has great bottom line benefits for business owners that are willing to embrace that business model. However you need to be able to decifer what’s hype and what’s reality before you make a decision to “go to the cloud”.

Vince Arden
Founder / CFO

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