Successfully managing cloud economics

Cloud economics is often tightly defined as “the financial analysis and optimisation of cloud resources within the context of decision-making on a particular workload deployment”.

However, in reality, making longer term decisions on cloud deployment requires both economic analysis and multiple architectural, operational, and strategic choices looking out towards a mid-to-long term timeframe. Therefore, this research note looks at how cloud economics will be impacted by cost and a range of other factors in the mid to long term – and how good decisioning can be made that will satisfy not only the CFO but the CIO, CTO and CEO.  This discussion is framed within the topic of hybrid cloud, on the assumption that this is the preferred long-term architecture for most telco.

The diagram illustrates the mid-to-long-term factors expected to impact the cloud economics of a telco and provides some discussion on how they can be mitigated on the hybrid cloud