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The Benefits and Challenges of Virtualization, Private and Public Clouds

The biggest advantage of using public cloud is reduction in fixed costs

After my earlier blog discussing the evolution of IT, I had several discussions on the benefits and challenges of virtualization, private, and public clouds.  Following bar chart is an attempt to capture the benefits and challenges of various phases of IT evolution from the days of having dedicated physical servers for each application to the use of public cloud.

Physical-2-Cloud
The chart is self explanatory, some key points to note are:

  • Going from virtualization to private cloud is basically a step to provide self service capabilities to the application owners.  It increases flexibility and also increases the management complexity, as it adds another layer of abstraction
  • The biggest advantage of using public cloud is reduction in fixed costs, as you don’t have to build the capacity for exceptional peak cases.  Several IT activities have elastic demand, development, functional testing, load testing, end of quarter processing etc.

More Stories By Jamal Mazhar

Jamal Mazhar is Founder & CEO of Kaavo. He possesses more than 15 years of experience in technology, engineering and consulting with a range of Fortune 500 companies including GE and ING. He established ING’s “Center of Excellence for B2B” which streamlined $2 billion per month in electronic money transfer operations. As Lead Architect at GE Capital e-Business team, Jamal directed analysis and implementation efforts and improved the performance of the website generating more than $1 billion in annual lease revenues. At Trilogy he provided technical and managerial expertise for several large scale e-business implementation projects for companies such as Boeing, NCR, Gartner, British Airways, Quantas Airways and Alltel. Jamal has BS in Electrical and Computer Engineering from the University of Texas at Austin and MBA from NYU Stern School of Business.

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