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Director, OpenShift Strategy at Red Hat. Founder of Rishidot Research, a research community focused on services world. His focus is on Platform Services, Infrastructure and the role of Open Source in the services era. Krish has been writing @ CloudAve from its inception and had also been part of GigaOm Pro Analyst Group. The opinions expressed here are his own and are neither representative of his employer, Red Hat, nor CloudAve, nor its sponsors.

2 responses to “McKinsey FUD Revisited”

  1. Mark Kerr

    I like the rental car analogy too – but maybe draw different conclusions from it about Enterprise computing vs Cloud. Its clear from the analogy that short term rental offers something different from long term purchase or lease arrangements – flexibility, rapid deployment, fine grained usage based costing. And its also clear that if what you want is stable, long term, predictable then renting a car on this basis (vs purchase or long term lease) is a fairly bad idea economically. There are some down sides – turning up at the rental desk and having to queue because demand is high, or the vehicle you want is not available…
    Same with Enterprise IT. Large enterprises running ERP systems need predictable , reliable capacity and can predict their demands fairly well over long time periods. For these uses, the benefits of cloud do not apply. So it is not a question of ‘replacing’ enterprise IT with cloud, or some inevitable migration to a better model, but it is more a question of complementing enterprise IT with cloud services. Just like a large company may have a fleet of leased cars as well as a contract with Hertz for short term, unpredictable needs.

  2. Krish

    Mark, I am with you on it. The rental car analogy doesn’t hold if you want to use Cloud for a longer term. That is why I have argued that the rental car model is a valid model in the near future when enterprises are getting comfortable with the idea of Cloud Computing and market forces bring down the cost of infrastructure. For me, this model explains the current state of enterprise cloud adoption.