Cloud is about TCO, direct and indirect

I think the problem with cloud computing is that most organisations are only looking at the initial costs of the cloud, and not at the total benefits that cloud computing will bring.

What are the benefits that I feel that some organisations are not looking at?

1. Scaling computing resources up and out
2. Facility management of these computer resources and allow it scale as and when required
3. The manpower required to do the operational work to scale up and out of the computing resources

Many forget the importance of the last point because this frees your manpower from doing the operational work and allow them to do more value-adding work as they are no longer worrying about keeping the lights on. The costs involved is both tangible and intangible, and the savings can be tremendous.

However, I still hear people said that cloud computing is expensive. To see the cost savings, you must redesign your business operations to complement cloud computing. Only then can you can see the savings.

Personally though, if you're looking at service quality, the ability of scaling computer resources as and when required is a competitive advantage that few has. That I believe is the true benefit of cloud computing.