Capacity planning in a cloud environment - GovCloud Network


Wednesday, October 10, 2008

Capacity planning in a cloud environment

In her post “Cloud computing killed the capacity star“, Ivanka Menken brings up some good points. Just think what changes this could bring to the government budgeting process. The trends that Ivanka addresses could result in the following:

  • Traditionally, demand management is used as an input into a capacity plan that is then used for capital expenditure budgeting. In the new world, this will no longer be sufficient, because the ability to rent capacity on “pay as you go” basis will now be a much more important input into the operational side of the budget.
  • In economically unstable times (such as today) the focus is on low fixed cost. The accompanying budget strategy is to purchase infrastructure with excess capacity and sit on it for as long as possible. While this may not be the lowest initial cost approach, it does minimize the risk of mission failure over the longer term. In the new budget world, agencies can purchase the minimum infrastructure needed to meet current steady state requirements. This would typically result in an IT platform with minimal excess capacity. If more is needed later, one would use operational funds for cloud based services. This new strategy would conceivably result in lower initial cost and lower lifecycle cost as well.
  • With IT services as a utility, budgeting for it will become more akin to budgeting for office electricity. Do agencies do a annual capacity plan for electricity? No. A flat rate is set based on another related factor ( number of employees, number of offices, etc). This approach could actually result in absolutely zero capital budget for IT !!

What do you bean counters think about that !!

Follow me at


Phone number*
Your Message

Latest posts


Digital Transformation and the Mainframe

Digital transformation infuses digital technology into all areas of an organization’s business or mission. Its fundam...


Composable Architecture Q&A. Are you ready?

Q: Is it time for my company to jump on the composable architecture bandwagon? A: Composable architectures are quickl...


Increase Productivity by Reducing Technology Distraction: Lessons from Forrester Research

Workplace productivity is hurt every day by the very technology developed and purchased to improve it.  Forrester ann...


Cloud Computing Evolves: An Interview with Mats Johansson

Recently, Ericsson Digital released an amazing report on Edge Computing and 5G. In it, they explained how distributed...


Unveiling the end-to-end capabilities for the networked society

An Interview with Henrik Basilier  By Kevin L. Jackson The telecom industry is rapidly moving towards a future i...


AT&T Finance Solutions GM on Shrimping, Software, and CX

Helping clients address the trends and challenges presented by the Financial Services industry is the main focus for ...


The IoT Nexus: Bosch Connected World 2019 in Berlin

Next week, I will be influencing #LikeABosch as I accept an invitation from the company to attend Bosch ConnectedWorl...


Survive and Thrive With Digital Transformation

First cloud computing then multi-cloud. How can we get ahead of this digital transformation nightmare? These are the ...


The “George Jetson” of Today

He grew up in Silicon Valley, landed his first job at Apple Computers, was introduced to Nobel Prize winners by his d...


MWC19: Where Telecommunications and Cloud Meet

As a cloud solution architect, my passion is learning the details about how cloud computing uniquely supports specifi...