We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    Flat editorial illustration: The article connects AI and marketing analytics with managerial judgment grounded in consumer behavi
    How an Online MBA in Marketing Connects AI and Data Analytics
    11 Min Read
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
    7 Min Read
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Moving to the Public Cloud? Do the Math First
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > IT > Cloud Computing > Moving to the Public Cloud? Do the Math First
Cloud Computing

Moving to the Public Cloud? Do the Math First

paulbarsch
paulbarsch
4 Min Read
Moving to the Public Cloud? Do the Math First
Illustration generated with Qwen Image.
SHARE

A manufacturing executive claims that many companies “didn’t do the math” in terms of rushing to outsource key functions to outside suppliers. Are companies making the same mistake in terms of rushing to public cloud computing infrastructures?

The herd mentality—we know it well. Once a given topic (i.e. agile development, Hadoop “Big Data” implementation, etc.) becomes the darling of business and management publications, a gold rush usually follows to implement. Unfortunately, sometimes there isn’t much, or any, thought put into gauging enterprise fit or building a business case for the latest and most fashionable idea.

Take for example the concept of outsourcing. During the early 2000s, cheap labor rates in China and India caused senior managers to see dollar signs as they could cut labor costs nearly in half, while gaining a specialized workforce dedicated to developing and building products and/or servicing customers. 

There was a catch however. When considering topics such as delivery lag times, transportation costs, loss of corporate agility, language and communication barriers and more, the so-called cost savings often failed to materialize.

More Read

Using Big Data to Minimize the Risks of User-Generated Content
Using Big Data to Minimize the Risks of User-Generated Content
Is Big Data Winning or Losing?
Hadoop Adoption: Where Does Your Company Stand?
An API Bridge Between Big Data And Digital Marketing
7 Ways Data Monetization is Changing the Information Technology Job Market

“About 60% of the companies that offshored manufacturing didn’t really do the math,” says Harry Mosler, an MIT-trained engineer who runs the Reshoring Initiative. “They looked only at the labor rate, they didn’t look at the hidden costs.”

The concept of shifting compute needs to public cloud computing infrastructures is an idea gaining traction. As the C-suite contemplates methods to deliver better, respond to market changes faster and reduce costs, cloud is an increasingly tantalizing option. In fact, the market for public cloud computing is said to be $131B in 2013 and growing, according to a tier one analyst firm.

While companies are choosing cloud for myriad reasons, it’s readily apparent that procuring public infrastructure, development platforms or applications from a cloud provider is really just another form of outsourcing.

This then brings some challenges to the forefront, specifically the need to understand the business case and use cases for cloud computing for your own company. And the needs must go beyond simple cost savings analysis.

Don’t make the same mistakes of those executives who rushed to outsourcing in the past decade. Tally up the cost savings, but also spend time diagnosing “hidden risks” of public cloud in terms of well-known issues of costs of downtime/availability, data security/privacy in a multi-tenant environment and data latency. 

In addition, think about the level of control you want over your IT infrastructure. Are you comfortable relying on another vendor for critical IT infrastructure needs? In case of the inevitable IT failure or worse case cyber-attack, are you one of those who would want to start working a problem right away, rather than opening a trouble ticket and waiting for an answer?

You’ll also need to consider skill sets (tally those you have, and those you’ll need), in addition to architecting your various workloads for cloud infrastructures.

Please don’t get me wrong. For many companies, sourcing computing needs to public infrastructures makes a lot of sense, but when only supported by a thorough business case, and detailed risk analysis.  You’ll need a thorough understanding of what you’re jumping into before “joining the herd,” especially when an on-premise solution might work better.

In other words, “do the math” (figuratively and literally).  

TAGGED:big datacloudcybersecuritydata in the clouddata latencydata securityhadoopinfrastructuremulti-tenantpublic cloud
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

Flat editorial illustration: The article’s core relationship is that restoring a refrigeration system does not establish trustwor
After the Cyberattack, Can You Trust the Machine?
Artificial Intelligence News
Flat editorial illustration: A technology-editorial comparison of disconnected origination, servicing, and collections records dr
The Data Reconciliation Problem Inside Disconnected Lending Systems
Big Data Exclusive Fintech
Flat editorial illustration: The article connects AI and marketing analytics with managerial judgment grounded in consumer behavi
How an Online MBA in Marketing Connects AI and Data Analytics
Analytics Artificial Intelligence Big Data Exclusive
Flat editorial illustration: The article connects commercial drone capture with integrated software workflows that organize and r
Drone Technology as a Business Investment: Calculating ROI, Costs, and Long-Term Value
Business Intelligence Marketing Software

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Big Data Leads to Better Virtual Private Servers for Small Businesses
Big DataSecurity

Big Data Leads to Better Virtual Private Servers for Small Businesses

5 Min Read
Business analyst pointing at a modern BI dashboard with KPI tiles, bar and line trend charts, an AI network diagram, and a data table on a large screen
Business IntelligenceExclusive

6 Business Intelligence Trends to Watch in 2026

12 Min Read
Big Data Leads to Massive Changes in Website Management and Development
Big Data

Big Data Leads to Massive Changes in Website Management and Development

6 Min Read
Data-Driven eCommerce Case Study: Cohorts and Segmentation
AnalyticsBig DataBusiness RulesExclusiveMarket ResearchNewsPredictive Analytics

Data-Driven eCommerce Case Study: Cohorts and Segmentation

9 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

5 Great Tips for Using Data Analytics for Website UX
5 Great Tips for Using Data Analytics for Website UX
Big Data
ai chatbot
How AI Website Chatbots Improve Customer Support and Lead Generation
Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?