But dont assume just because it is the Internet, and everything will be perfectly scalable for all your enterprise applications needs, he warned.
The current low costs might not last. The reality is that what vendors like Google and Amazon they are providing, in terms of infrastructure services, is really subsidised by their other businesses. Google has huge search revenues that fund things where they can give cloud computing services at low to free prices.
When the use of cloud computing broadens, how would pricing models turn out? Economies of scale can only go so far. You dont necessary want to move from pay for something once to a model where you have to pay on an ongoing basis, said Cearley.
There is much uncertainty on how companies deal with an all new culture that comes when one goes onto cloud computing, said Cearley. One issue is managing the costs. How am I going to deal with billing from half a dozen vendors for applications, infrastructure and everything else, and managing the entire environment?
Trust is a concern
Trust, in terms of privacy and security is also another concern, he adds. For instance, a global vendor would have storage in a number of countries worldwide where some users might be concerned on which countries their data is being housed.
One solution is to enter an agreement with the vendor on the locations that the user wanted his data stored, he said. It is still a work in progress for vendors, he concluded.
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