The Nuances of Cloud Economics

The cloud´s financial and strategic benefits have been the catalysts for its explosive growth, and pay-per-use pricing, also known as measured service, is a core attribute. Some say that cost reduction and business agility are the two most important benefits of the cloud, others argue that economies of scale from large providers are the main drivers of cloud benefits, and still others conclude that eventually all IT will move to the cloud. However, the theory and the practice of cloud economics encompass numerous challenges, ranging from the practical to the theoretical. This article explores these challenges.