Cloudware Economics - Guide to Cloud Computing for Business and Technology Managers - page 294

TABLE 14.3
Value Comparison on Colocation, Managed Services, and IaaS for Providers

Managed
Services Colocation IaaS with Cloud Computing

Profit margin Low; intense

competition

Low; intense
competition

High; cost saving by resource sharing

Value add service Very few Few Rich, such as IT service management

and software renting

Operation Manual

operation;
complex

Manual
operation;
complex

Automatic and integrated operation;
end-to-end request management

Response to
customer request

Manual
action; slow

Manual
action; slow

Automatic process; fast

Power
consumption

Normal Normal Reduce power by server consolidation

and sharing; scheduled power off

TABLE 14.4
Value Comparison on Colocation, Managed Services, and IaaS for Users

Colocation Managed Services IaaS Using Cloud

Performance Depends on

hardware

Depends on
hardware

Guaranteed performance

Price Server investment

plus bandwidth
and space fee

Bandwidth and
server renting fee

CPU, memory, storage,
bandwidth fee; pay per use

Availability Depends on single

hardware

Depends on single
hardware

Highly available by hardware
failover

Scalability Manual scale out Manual scale out Automated scale out

System
management

Manual hardware
setup and
configuration;
complex

Manual hardware
setup and
configuration;
complex

Automated OS and software
installation; remote
monitoring and control;
simple

Staff High labor cost and

skill requirement

High labor cost and
skill requirement

Low labor cost and skill
requirement

Usability Need on site

operation

Need on site
operation

All work done through Web
UI; quick action

A significant requirement for a cloud-based application is to operate in
such a way that it functions reliably and delivers a consistent service at a
variety of levels. This requires not only focusing on the functional proper-
ties of services but also concentrating on describing the environment host-
ing the cloud service, that is, describing the nonfunctional capabilities of
services. Each service hosting environment may offer various choices of
QoS based on technical requirements regarding demands for around-the-
clock levels of service availability, performance and scalability, security and