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

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Mov<strong>in</strong>g Onward 219<br />

server” crowd, <strong>and</strong> this is another people issue. Some people refuse to allow<br />

cloud comput<strong>in</strong>g because of control issues, no matter what bus<strong>in</strong>ess benefits<br />

you present to them.<br />

Cost means there are some applications <strong>and</strong> architectural components<br />

(services, processes, <strong>and</strong> data) that simply make no sense to extend to cloud<br />

comput<strong>in</strong>g because there are no direct cost sav<strong>in</strong>gs or other bus<strong>in</strong>ess benefits.<br />

While you can make a bus<strong>in</strong>ess case for some applications, cloud comput<strong>in</strong>g<br />

is almost never cost effective or a good technical fit for all applications. As we<br />

outl<strong>in</strong>ed <strong>in</strong> Chapter 4, “Mak<strong>in</strong>g the Bus<strong>in</strong>ess Case for <strong>Cloud</strong>s,” you have to do<br />

the bus<strong>in</strong>ess case around cloud comput<strong>in</strong>g to justify cloud comput<strong>in</strong>g as the<br />

right fit.<br />

However, you will see many startup companies build a significant portion<br />

of their IT architecture on cloud comput<strong>in</strong>g platforms, s<strong>in</strong>ce it is so easy to<br />

justify the use of cloud comput<strong>in</strong>g assets when consider<strong>in</strong>g the cost benefit for<br />

a startup enterprise. Some startups will place their entire IT <strong>in</strong>frastructure on<br />

the platform of the clouds, from e-mail to calendar<strong>in</strong>g to databases to enterprise<br />

applications. They will realize huge cost sav<strong>in</strong>gs by tak<strong>in</strong>g this route <strong>and</strong><br />

will therefore have a large competitive advantage over their competition.<br />

Consider<strong>in</strong>g the advantage that startups will have <strong>and</strong> that many of those<br />

startups will grow to be large enterprises, it is logical to assume that many<br />

larger companies <strong>in</strong> the future that leverage cloud comput<strong>in</strong>g from the beg<strong>in</strong>n<strong>in</strong>g<br />

will cont<strong>in</strong>ue to be dependent on cloud comput<strong>in</strong>g as they become<br />

larger, publicly traded companies. That is just a matter of the evolution of<br />

this technology <strong>and</strong> the benefits of adoption as a systemic component of the<br />

enterprise architecture or <strong>SOA</strong>.<br />

Q: Will cost sav<strong>in</strong>gs cont<strong>in</strong>ue to be a significant driver for<br />

cloud comput<strong>in</strong>g<br />

A: Yes, but it is not the only driver. As we saw <strong>in</strong> Chapter 4, there can be substantial<br />

cost benefits when leverag<strong>in</strong>g cloud comput<strong>in</strong>g, but as we po<strong>in</strong>ted<br />

out, your mileage may vary. You have to consider the cost holistically with<br />

other factors, <strong>in</strong>clud<strong>in</strong>g strategic benefits that are typically harder to def<strong>in</strong>e<br />

but there nonetheless.<br />

It is easy to determ<strong>in</strong>e that cloud comput<strong>in</strong>g is less expensive than traditional<br />

on-premise comput<strong>in</strong>g by simply consider<strong>in</strong>g the operat<strong>in</strong>g expenses.<br />

The real benefit of cloud comput<strong>in</strong>g (or more specifically, <strong>SOA</strong>

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