Recently, I wrote ConsultoBabble Report for Cloud Deployment of EtherealMind.com wherein I pointed out that Cloud Computing is not cheap. It’s cheap in terms of CapEx, but expensive as OpEx. Over a five year ROI, I’ve never managed to make a significant corporate project come out cheaper with cloud services of any sort. It’s always cheaper to insource computer resources.
A few people attempted to make the point that I didn’t understand, or didn’t know something or other.
Marco Arment runs Instapaper as a tidy online business. Saw these tweets today:
This is just another data point on the graph that cloud computing is too expensive for enterprises. Although attractive in terms of CapEx, someone has to pay for all extra software development that makes those cloud stacks possible. And resource costs are much higher the purchasing the equipment outright.