Traditional IT Economics - podcast episode cover

Traditional IT Economics

Apr 27, 202111 minSeason 3Ep. 1
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Episode description

SHOW: Season 3, Show 1

OVERVIEW: From the creators of the Internet's #1 Cloud Computing podcast, The Cloudcast, Aaron Delp (@aarondelp) and Brian Gracely (@bgracely) introduce this new podcast,  Cloudcast Basics.

TRADITIONAL IT ECONOMICS

Introduction & Explanation: 

  • Dominated by proprietary hardware and software. 
  • 3yr, 5yr, 7yr hardware refresh cycles - required to depreciate assets
  • 1yr, 3yr, 5yr software contracts - often include in “Enterprise License Agreements” (ELAs)
  • Successful POCs were often contractually bound to buy the solution.
  • Not all software was easy to upgrade between tiers of features. No “free-tier”.
  • Large vendors would have financing arms to create loans, or “on-demand” pricing (typically based on “true-up” reports at various times of year).
  • Businesses still needed to pay for all the facilities to house the data center (building, power, electricity, insurance, etc.)
  • Open source software began to change some of those dynamics, but not all companies had the staff to operate open source software.

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CLOUD NEWS OF THE WEEK - http://bit.ly/cloudcast-cnotw

LEARNING CLOUD COMPUTING:
Here are some great places to begin your cloud journey, if you're interested in getting hands-on experience with the technology, or you'd like to build your skills towards a certification. 

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