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A study into cloud computing by McKinsey has found that cloud computing doesn’t make financial sense for large enterprises.

The study, “Clearing the Air on Cloud Computing,” estimates that shifting the average data centre to a cloud model would nearly double the cost to a company compared to running its own systems.

“Clouds already make sense for many small and medium-size businesses, but technical, operational and financial hurdles will need to be overcome before clouds will be used extensively by large public and private enterprises,” the report states

“Rather than create unrealizable expectations for “internal clouds,” CIOs should focus now on the immediate benefits of vitalising server storage, network operations, and other critical building blocks.”

The company used data from Amazon’s operations and estimated that total cost of the data centre functions would be $366 a month per unit of computing output, compared with $150 a month for the conventional data centre.

What solutions you chooce to be deployed in the cloud, as well as how you run your business will depend on how well cloud works for you. It’s not going to be something that you will switch to overnight, however deploying cloud or grid for specific applications/business needs might be a real enabler to getting the work done in a fixed time frame and at a fixed cost.

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