When cloud computing doesn't make sense

A new study from McKinsey & Co., "Clearing the Air on Cloud Computing," concludes that outsourcing a typical corporate data center to a cloud service would more than double the cost. The study uses Amazon.com's Web service offering as the price of outsourced cloud computing, since its service is the best-known and it publishes its costs. On that basis, according to McKinsey, the total cost of the data center functions would be $366 a month per unit of computing output, compared with $150 a month for the conventional data center.

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