The case against the cloud for big companies

04/15/2009 | NYTimes.com

If your company has more than $500 million in revenue, cloud computing may not be a cost-effective option, a McKinsey & Co. report suggests. Steve Lohr takes a look at McKinsey's research, including a finding that it would cost more than double to outsource a typical corporate data center to a cloud service than to keep it in-house. However, Lohr writes, there is one aspect of cloud computing worth cribbing from: virtualization, which "allows server computers to juggle more software tasks, and thus increase utilization, reducing capital and energy costs."

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