Fact or cloud computing myth?

Information technology managers around the world are being asked their thoughts on cloud computing and whether the companies (or agencies) they work for should use it. As with any new(er) technology, separating fact from fiction can be difficult.

Former Chief Information Officer Michael Hugos discussed what he believes are five cloud computing myths with Business Finance.

First, he said the idea that security for data in a cloud isn’t as good as in-house security, doesn’t make sense. “Security is part of how these companies make money,” Hugos told Business Finance, therefore they take it very seriously.

Second, the idea that cloud servers are less reliable than in-house data centers often isn’t the case. He points to the fact that cloud vendors have to keep on top of updates for their servers because it’s their livelihood.

Third, saving money is not the main reason companies should consider the cloud, he said. “The most compelling incentive to move to the cloud is to switch from a fixed-cost capital intensive business model to a variable cost pay-as-you-go operating expense model,” Hugos said in Business Finance.

Fourth, he said it’s a myth that big companies can run servers in-house for less money than in the cloud. He said companies often fail to factor in indirect costs like the salaries of people needed to run those servers and the energy it takes to run them.

Finally, he said the myth that cloud computing technologies require a whole new skill set for employees is unfounded. Instead, he said, businesses incorporating cloud computing will begin to rely more heavily on different kinds of people within their organizations, like business architects and enterprise architects. “That person is suddenly going to become much more important because they’re the ones who translate business needs into technical solutions,” Hugos told Business Finance.

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