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The True Value of Cloud Computing

Submitted by Michaelfidler from Google Reader

Jul 13, 2009

Summary

Two weeks ago I had the honor to be invited to participate at a small panel at Structure09 in San Francisco CA next to Matt Mullenberg founder of Wordpress, Robert Miggins VP of Business Development at Peer1 and Geir Magnusson Jr. consulting architect at the Gilt Groupe.

The topic of the panel was about the effects of running Cloud Computing on commodity hardware, but somewhere along the conversation, somebody asked a question that prompted a bit more explanation of the general effects of cloud computing.

See, most people are confused about the true benefits of cloud computing; often citing the cost of running a server from a cloud provider as being less than a traditional dedicated server from a traditional hosting company like Server Beach or alike. The fact of the matter is that running a server image from a cloud provider like EC2 is almost twice as expensive as it would be if you had a comparable dedicated server from a traditional hosting vendor. The reason is because the true value of Cloud Computing, is not in the cost of running a particular server i

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