Cloud Computing and SOA Convergence in Your Enterprise: A Step ...

Defining the Holistic Value 71
When leveraging a cloud computing resource or resources, the risk is
usually reduced because you leverage only the capacity you need, and the
cost adjusts according to the capacity you use (see Figure 4.4). At a lower capacity,
you are not wasting money by having idle computing resources
around, nor are you risking that you will not have the resources to scale,
since the cloud computing resources are on demand.
Risk of Being Dumped
You can indeed shift the risk to the cloud computing provider, but in many
instances, there is another risk to consider: that the cloud computing provider
will simply stop providing you with cloud computing services. This
leaves you looking for other options and perhaps damages your business.
While cloud computing providers are not in the business of dumping
customers, outside forces such as an acquisition could take place, and the
purchasing company may decide that a particular cloud computing platform
is unprofitable and must be shut down. Or, the cloud computing provider
may go out of business for any number of reasons. Or, it may decide that you
have violated some policy and discontinue your service.
It is important to note that the risks go in two directions: (1) shifting the
risk to the cloud computing provider around your need to expand and contract
IT in support of the business, and (2) accepting the risk that the cloud
Cost of Cloud
Computing
Provider
Transaction/Day
Year
1
Year
2
Year
3
Year
4
Year
5
Figure 4.4 When leveraging a cloud computing resource, you can scale up as
you need to scale up, thereby putting the risk on the cloud computing provider,
not on the enterprise.