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Six Costly Cloud Mistakes

The savings from cloud computing may be considerably less than expected if you don't avoid these missteps.

August 12, 2010

The chance to cut costs is one of the chief reasons companies turn to cloud computing, but how much is saved may depend on avoiding some common mistakes and misperceptions.

On the surface, moving to the cloud seems like a can't-lose deal. When third parties (such as Amazon.com, Google, Hewlett-Packard, IBM, Microsoft, and Savis) host your applications or computing capacity in their massive virtualized data centers, you save the capital expense of updating hardware, cut maintenance costs, use less power, and free up floor space. The basic cloud pricing model is a flat fee based on capacity consumption, which often amounts to less than the forgone costs. Read more...

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