Business-Driven Architect

Brenda Michelson

@ Cloud Connect: The Surprising Economics of the Cloud

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Session abstract: What's the math behind cloud computing? In this opening session, Joe Weinman -- who coined the term "Cloudonomics" and writes and researches the economics of on-demand IT -- will discuss the inevitability of cloud computing, review his analysis of elastic computing and offer some counterintuitive insights into valuing the cloud.  Bernard Golden -- CEO of Hyperstratus -- will provide nuanced insights into cloudonomics using some real world examples.

Speaker - Joe Weinman, Strategy and Business Development VP, Author, AT&T

Speaker - Bernard Golden, CEO, HyperStratus

Joe Weinman opened the session with the most important question, Why do Cloud?  In the why, he was referring to the hard economic value of doing cloud.  Not cloud computing for technology innovation or patents, but for economic benefits. 

Before delving into the cloudonomics, Joe walked through some definitions of cloud computing, including NIST, but then settled on something simple.  Cloud is Common, Location Independent, Online, Utility, on-Demand.  He contrasted this with another definition, Vapor = Virtualized, Automated, Provisioning, of Resources.  In Joe’s opinion, a complete private cloud implementation is ‘vapor’. 

The true economic value is hybrid use of public and private cloud, where the decisions to assign workloads to computing are optimized on business trends, infrastructure spend, and opportunity cost.

In his talk, Joe reinforced points and equations from some of his popular blog posts.  Instead of my attempting to reiterate those point, I’ll refer to the source posts.  If the economics of the cloud is important to you, check these out:

In the second part of the session, Bernard Golden walked through a case study on Lessonology’s transition from a single server application in a colo, to a cloud based application that can support 13,000 teachers, 24x7, in a cost effective manner.

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Brenda Michelson, Principal of Elemental Links, shares her view on architectural strategies, technology trends, business, and relevance.

Brenda Michelson

Brenda Michelson is the principal of Elemental Links an advisory & consulting practice focused on business-technology capabilities that increase business visibility and responsiveness. Follow Brenda on Twitter.


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