How Cloud Economics Impacts Business Thinking


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Apr 27 2021 11 mins  

SHOW: Season 3, Show 3

OVERVIEW: From the creators of the Internet's #1 Cloud Computing podcast, The Cloudcast, Aaron Delp (@aarondelp) and Brian Gracely (@bgracely) introduce this new podcast, Cloudcast Basics.

HOW CLOUD ECONOMICS SHIFTS BUSINESS THINKING

Introduction & Explanation:

Let’s start with a simple concept - annual budgeting. Every company does it, and it’s partially based on data and partially based on guessing (a.k.a. “forecasting”).

  • Nearly every business project is going to have a technology element
  • Business projects have a scope, a timeline, and a measurement. They budget them by the quarter, half-year and fiscal-year.
  • Business opportunities often involve something new.

Legacy IT Economics have never been able to keep up with this model, hence cloud computing disrupted both a technology model, but also a business model.

  • Cloud allows experimentation (fail-fast, A/B testing, parallel experimentation, fast scale-up or scale-down, etc.)
  • Cloud allows the addition of technical skills within additional people
  • Cloud allows access to global resources
  • Cloud allows access to new innovations and technologies

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