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Cloud Services And The Hidden Cost Of Downtime
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WKash
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WKash,
User Rank: Apprentice
4/2/2014 | 5:15:34 PM
Re: Negotiate an SLA that reflects true costs...but what are they?
J._Brandt, you also raise some good points.  One other unknown is how many people will reach out on their own to secure web services.  Interesting article just posted on our site from former NASA CTO Chris Kemp:

Will BYOD Become 'Bring Your Own Cloud?'

 

 
J_Brandt
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J_Brandt,
User Rank: Apprentice
3/31/2014 | 10:04:02 PM
Re: Negotiate an SLA that reflects true costs...but what are they?
Excellent point.  Also if a group has too much flex, what happens to accidental or out of control demand? 
J_Brandt
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J_Brandt,
User Rank: Apprentice
3/31/2014 | 9:56:11 PM
Apps That Take Advantage
Some good points I agree.  There is also the issue of whether your applications are maximized to take advantage of all the "third-party providers" "continuity technology."  Some of those technologies are more costly to have and link into.
WKash
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WKash,
User Rank: Apprentice
3/19/2014 | 6:20:49 PM
Re: Negotiate an SLA that reflects true costs...but what are they?
Another side of this coin, at least from government CIOs I speak with, is the fact that enterprises are still not sure how to forecast demand.  With fixed assets and licenses, and a track record of useage, they have a pretty good handle on projected demand. But with cloud services, it's harder to predict where the demand will come from, how it will take shape. If agencies are paying as they go, it shouldn't be too challenging, but it's harder to fold that into SLAs.

 
Charlie Babcock
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Charlie Babcock,
User Rank: Ninja
3/19/2014 | 6:02:03 PM
Negotiate an SLA that reflects true costs...but what are they?
Frank makes many good points here. Near the end, he says, "The trick here is to understand the true costs (of a service outage) and use that to negotiate effective SLAs that protect the business." And for many IT organizations, it's hard to know the cost of a single application, or set of applications. Which makes knowing what to negotiate in an SLA still hard. Terremark and Savvis will give you the SLA that you want, but it will cost you. Amazon won't, and it won't cost you-- at least as long as there's no outage. Take your pick. The Amazon uptime track record is actually very good, IMHO.
Stratustician
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Stratustician,
User Rank: Apprentice
3/19/2014 | 2:15:21 PM
Sadly, many hidden costs
Some great points.  Not to mention the added costs associated with brand damage due to services being unavailable, the increased loads on front line support as customers start flooding the phone with questions about why they can't access their services, lost internal productivity for any hosted services that are business critical.  


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