Summing Up TCO Considerations – Insight for Providers

Recently-published Saugatuck research provides Saugatuck’s Cloud vendor clients with TCO considerations and suggestions for accelerating Cloud adoption. In addition various factors are explained for users to consider when evaluating potential costs of Cloud offerings. These factors include:

Average utilization of the Cloud infrastructure
Economies achievable by large Cloud providers
List prices versus negotiated discounts for large/aggregated workloads

Our research has shown that users do not consistently consider these factors during evaluations and consequently do not gain an accurate projection of the costs of Cloud offerings.

To gain market share Cloud vendors should not only adopt a competitive pricing structure, but, also become more proactive and informative in assisting IT organizations to perform price evaluations. In addition to providing price estimation models we suggest Cloud vendors take several actions on their websites.

Note: Ongoing Saugatuck subscription clients can access this premium research piece (1048MKT) by clicking here, and inputting your ID and password.

Charlie Burns is a Vice President for Saugatuck Technology, focusing on enterprise software, business/IT services, and IT systems technologies and management. With over 35 years of experience in the Information Technology arena, Charlie is an established expert in IT product and marketing management, and in IT user issues and requirements.
After 26 years with IBM, where he held positions in sales, product development and large systems product marketing, Charlie left to become Research Director at Gartner Group in 1993. In 1998 he joined Giga Information Group as Research VP. At both Gartner and Giga, he focused on large systems and the business practices of the major large systems vendors. In 2000, Charlie rejoined Gartner in a relationship management role responsible for two of its largest vendor clients.
Charlie received a BS in Computer Engineering from Case Institute of Technology in Cleveland, Ohio. Over the years, he attended a variety of IBM technical and research training programs, becoming an adjunct professor focusing on product management issues.

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