How does the economic model work in community cloud model? | HCLTech

Technology Q&A

Economic Community Cloud Model
How does the economic model work in community cloud model?

With the community cloud model increasingly become a subject of interest in the IT industry, there is no better time to weigh out its costs and benefits. While the obvious benefit of this model is that it enables IT professionals to focus more on innovation than budget, the economies of scale that it could bring is also an important consideration. The following are the primary means by which the model offers economies of scale:

  1. Large data centres can deploy more resources at lower costs.
  2. Companies can leverage pooling to improve resource utilization.
  3. Organizations can reduce labor costs for large public clouds through multi-tenancy.

With a change in priorities from budget to innovation, operational and capital expenditure tends to fall with the community cloud model. The interest in this deployment method is therefore not unfounded and at this rate, the global community cloud market is projected to reach USD 9,244.10 million by 2024.

Central to these models is resource pooling, which generates significant cost savings. As such, the following customer population metrics shape cloud computing economics.

  1. Number of unique customer sets
  2. Customer set duty cycles
  3. Relative duty cycle displacement
  4. Customer set load

According to the National Institute of Standards and Technology, these metrics are key to reducing the amount of physical IT resources required to cater to a humongous amount of demand. In fact, organizations can make up to 30% savings in IT resources, enabling real-time modification of the physical infrastructure and boosting user experience.

However, the community cloud implementation process is not devoid of challenges. The cloud in itself is often considered a harbinger of security threats to organizations. As a result, it is imperative for businesses to hedge against this risk and identify a cloud deployment model that is best suited for their requirements.

The Merits of the Community Cloud Model

Overall, the community cloud model is a holistic approach towards addressing both intra- (labor, hardware, security) and inter-organizational (market competition) factors.  Leveraging an economic community cloud model yields guaranteed results in:

  • Lowering costs
  • Ensuring capital expenditure free computing
  • Reducing redundancies
  • Fostering Innovation

Having said that, it is also important to note that an economic community cloud model works best in an environment that prioritizes robust infrastructure as well as streamlined business processes and data management. It is important to keep this in mind when evaluating the best suited cloud deployment model for the business requirements at hand.