Enterprise IT supports many unprofitable applications. Microsoft Exchange, legacy databases, obsolete accounting systems, end-of-life desktop operating systems and much more. Public clouds can, and do, cancel unprofitable products. This is a brutal truth in cloud planning.
- Enterprise IT supports many applications that are unprofitable to own and maintain
- Executives and managers are commonly unprepared and incapable to evaluate the cost of sustaining applications in the face of internal change.
- Cloud providers have no requirement or need to sustain unprofitable services
- Enterprise is unprepared and has limited comprehension of this issue.
Public Clouds and Profits
Public clouds only offer profitable services and very quickly discontinue services. For example, Google offers containers because their cloud platform run that way. Amazon offers IaaS and some SaaS services but only those which are profitable for Amazon to offer. Amazon has started to offer marginal services like Workspaces to evaluate whether there is long term profitability in the market niche.
Has to Be Really Big
For very large scale providers like Amazon and Google, successful products must be hugely successful to stay operational. The companies operate at a scale and size that limited success isn’t good enough. Equally, profitable but small isn’t good either.
For these companies, time and resources are wasted on small projects instead of chasing the next huge success or growth trend. There is no legacy in the public cloud.
Adoption or Selection Risk
This leads to a significant risk of public clouds adoption where a vendor could and will shut down services. Google has abandoned so many services that some people used “googled” as verb for closed services – as in “that service was googled a while back”.
Enterprise IT has many unprofitable services and is required to support them. It is true that companies should perform a return on investment and business value but the simple fact is that most do not.
Private Cloud Flexibility or Burden
In a private cloud or Enterprise IT, product or company does not force immediate reaction or budget investment to remediate a failed supplier, end-of-life technology and unsuccessful product. This can be valuable to the business in the short term.
The EtherealMind View
The long term, of course, is where Enterprise IT gets to carry the can. Supporting obsolete technology, failed products or bad suppliers is far too common means that Enterprise IT is forced to maintain unprofitable services.
Most importantly, executives and managers are likely to be unprepared for service termination when public cloud services decide it is no longer viable to sustain them. Further, impacts to the business cannot be mitigated, ignored or transferred when the external party forces change onto the organisation. The customer will face a technology transition in a forced timeframe. Costs, resources and planning will be forced.
Concomitantly, the availability of skills and staff to perform and supervise such transitions may also be lost. Using partners for service transitions will be the most common option.