Putting a Cost on Cloud Computing

Michael Vizard

Figuring out the real cost of IT and the projected return on those investments has never been very easy. And with the rise of cloud computing services where pricing can change on a daily basis, it's only going to get more difficult.

To help address this issue, Digital Fuel, a provider of applications for managing IT budgets, is rolling out a cloud computing extension to its suite of IT financial-management applications that are delivered as a service.

According to Digital Fuel CEO Yisreal Dancziger, the service includes an IT Cloud Cost Management Module that features connectors to all the major cloud computing services that track pricing. Dancziger concedes that volume pricing and spot pricing for cloud computing services may affect costs, but most of the major service such as Amazon have pretty consistent pricing.



The real issue, says Dancziger, is that IT organizations are going to need a framework to compare public versus private cloud computing platforms and any hybrid approach to cloud computing that they may decide to pursue.

As IT evolves into a service managed by internal IT departments relying on a mix of internal and external resources, figuring out the financing of IT is getting more complex. The concept behind Digital Fuel and similar applications and services is to give IT access to the same type of finance applications that every other sector that invests in major capital equipment projects already has.

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