I’ll Take 26,280 Please

Being able to buy an entire IT infrastructure by the hour is a huge improvement in the decision cycle for IT operations.  It is hard to see this initially, but if you reverse the situation, it becomes obvious.  Imagine that you always bought a resource one unit at a time.  Now someone is proposing that you commit to a three-year supply all at once.  A three-year supply of hours is 26,280.  What else would you commit to purchasing more than 26 thousand of, in advance, with no return policy?

Being able to buy smaller chunks provides a couple of key opportunities:

  • Faster decision cycles: You need far fewer meetings, and far less planning to commit to just one hour of a data center.
  • Better responsiveness to changing needs: Your upgrade (and downgrade) window opens every hour.
  • ROI is much easier to capture: It is easy to keep 100% occupancy in a building where you can change the number of rooms every hour.
  • Access to smaller opportunities: Sometimes big opportunities only require small IT resources, but those IT resources may only come in large bundles, making the opportunity non-cost-effective. (Think about using 1000 computers to do a complex calculation in under an hour, but you only need them for that one hour.)

Buying 26,280 units in advance seems nuts, but this is exactly what we are doing when we buy a piece of IT equipment with a 3 year useful life, rather than renting that same capability from cloud provider.

One Response to “I’ll Take 26,280 Please”

  1. Cloud Platform Wanted « Plaudenslager's Blog Says:

    […] computing is about buying just the amount of data center resources that you need, and having the ability to change your mind about that quickly.  Any IaaS cloud provider worthy of […]

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