Hosting Center is cheaper than Cloud Computing says McKinsey & Company

For many companies it can be cheaper to buy the same infrastructure as in cloud computing. This is the conclusion from the consulting and advisor company McKinsey & Company. The report assuming that many companies want to use a shared sky, which many european companies will not do. Most companies does not ike the fact that their data is not encrypted and available on Amazon or Google Servers. If you want to build and maintain your own PRIVATE SKY it is actually cheaper than the costs for estabishment and maintaing running on the most know brands of Cloud Computing Providers. It is because that existing equipment can be re-used.

The compare system is by using the prices from Amazon EC2, and it turns out that Amazon is higher insted of buying your own equipment and use it as Server Hosting or Outsourcing in a ordinary Hosting Center. Many other companies such as Appriro agree that it is cheaper when we talk about SAAS – Software As A Service. McKinsey is setting the price pr. processor in a arge datacenter to 45 dollars pr. month. Garntner Group does not agree, as they tel the prices are much lower and thereby there is a bigger benefit for the provider.

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I am a CTO and MBA in Verinet which is providing 73 server hosting centers in 39 countries. The services includes Colocation, Server Hosting, Cloud Computing IT Outsourcing and Equipment Housing. This site is about server hosting centers and Mission Critial hosting in general. You are welcome to join with articles and comments. Please contact me at +45 70217777 ext. 281 Or see Verinet Server Hosting Center at http://www.verinet.dk/serverhosting.htm

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