Why have cloud technologies become popular, what is innovation?
When communicating with programmers, I often hear the question: why did cloud technologies become popular, what is the innovation? Based on this issue, I would like to express my opinion.
No matter how strange it may sound, the point is not in the technologies as such, but in the financial side of projects or products and business as a whole.
In business, it is customary to talk about two types of expenses:
1. CapEx - capital costs, i.e. we invest money in something and then we try to pay back something for a while.
2. OpEx - operating costs, i.e. pay regularly and use something.
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Example, the initiative group of employees has developed a new IT service, for this service you need a server and not one, you need to put the server somewhere, extend the communications, etc. They made a calculation, got a number of 100,500 in a certain currency and went to the financial manager to ask for money. And here begins the most interesting thing: 100,500 immediately, you must immediately find the amount, pay taxes. This amount is actually pulled out of the enterprise’s reserves for an indefinite period, these servers need to be somehow depreciated, then at the end of the period of use they are deducted from the balance sheet, disposed of, and of course, pay bills for maintenance and repairs. Will the investment pay off? And what to do with the servers, if the crisis has happened and it is necessary to wind up the business? What to do if the service was successful, is there enough server capacity?
In general, the purchase decision will be difficult, if at all possible to convince to make investments. This is Capex.
Now let's look at how this works if you decide to follow the path of minimizing CapEx by increasing OpEx. In this case, the team says, we need 1000 to set up the infrastructure and 500 per month for its rent. If something goes wrong, we will minimize the infrastructure or close it altogether. And if the service is popular, we will expand, just renting more servers. Such a decision is much easier for business to accept. Cloud technologies offer such a solution for business and this has become popular.
There is another scenario, when there is already a server and there is a desire or requirement to increase the efficiency of their use, it’s no secret that the server is idle for 80% of the time. Here, virtualization and self-service come to the rescue of business, which marketing called the private cloud and can improve the efficiency of server utilization by reducing self-service costs.
Under the same two scenarios also underlie the popularity of SaaS (software as service), which is a subspecies of clouds and also the sale of software by subscription. Why buy software, create infrastructure for it, if you can get a ready-to-use product for a small rent. And in the case of buying software by subscription, the price is small compared with the purchase forever and at any time you can refuse if you do not like it or decide to change the product.
So the popularity of cloud technologies is based on ideas of flexibility and convenience for business, and not technology for the sake of technology.
No matter how strange it may sound, the point is not in the technologies as such, but in the financial side of projects or products and business as a whole.
In business, it is customary to talk about two types of expenses:
1. CapEx - capital costs, i.e. we invest money in something and then we try to pay back something for a while.
2. OpEx - operating costs, i.e. pay regularly and use something.
')
Example, the initiative group of employees has developed a new IT service, for this service you need a server and not one, you need to put the server somewhere, extend the communications, etc. They made a calculation, got a number of 100,500 in a certain currency and went to the financial manager to ask for money. And here begins the most interesting thing: 100,500 immediately, you must immediately find the amount, pay taxes. This amount is actually pulled out of the enterprise’s reserves for an indefinite period, these servers need to be somehow depreciated, then at the end of the period of use they are deducted from the balance sheet, disposed of, and of course, pay bills for maintenance and repairs. Will the investment pay off? And what to do with the servers, if the crisis has happened and it is necessary to wind up the business? What to do if the service was successful, is there enough server capacity?
In general, the purchase decision will be difficult, if at all possible to convince to make investments. This is Capex.
Now let's look at how this works if you decide to follow the path of minimizing CapEx by increasing OpEx. In this case, the team says, we need 1000 to set up the infrastructure and 500 per month for its rent. If something goes wrong, we will minimize the infrastructure or close it altogether. And if the service is popular, we will expand, just renting more servers. Such a decision is much easier for business to accept. Cloud technologies offer such a solution for business and this has become popular.
There is another scenario, when there is already a server and there is a desire or requirement to increase the efficiency of their use, it’s no secret that the server is idle for 80% of the time. Here, virtualization and self-service come to the rescue of business, which marketing called the private cloud and can improve the efficiency of server utilization by reducing self-service costs.
Under the same two scenarios also underlie the popularity of SaaS (software as service), which is a subspecies of clouds and also the sale of software by subscription. Why buy software, create infrastructure for it, if you can get a ready-to-use product for a small rent. And in the case of buying software by subscription, the price is small compared with the purchase forever and at any time you can refuse if you do not like it or decide to change the product.
So the popularity of cloud technologies is based on ideas of flexibility and convenience for business, and not technology for the sake of technology.
Source: https://habr.com/ru/post/242765/
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