One of the most interesting aspects of Cloud Computing I have noticed over the past couple of years is the dichotomy that exists between Cloud USERS and Cloud PROVIDERS.

From the user perspective Cloud Computing is a means of abstracting all (or most of) the complexities inherent in the delivery of IT. From the provider’s perspective it is entirely the opposite.

Where the end user is no longer concerned with Real Estate, Power and Cooling, Depreciation of Capital Equipment, High Availability, OS patching and maintenance etc., the provider needs to consider these aspects in spades.

As CC is typically defined as “Utility” computing it is frequently compared to other utilities such as water, sewage and electricity. Few organizations of medium or even large size provide their own water, sewage treatment or generate their own power. Pay-per-Use is a well-understood and accepted model. You can control certain aspects of your expenses (energy-efficient equipment, and flushless urinals for example) but for the most part, you just pay what the utility asks, and in many cases, there is no choice of provider, particularly when it is a municipality.

Cloud Providers, on the other hand, rarely have the monopolistic advantage enjoyed by their peers in other utilities. The goal is to deliver services efficiently, and at a price competitive not only to other providers, but to the time-tested method of doing IT “in-house.” Clearly, if there is no economic incentive to run one’s IT “in the Cloud” its adoption will stagnate.

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