From the perspective of economics, why do IT vendors strive to transform to cloud computing vendors?
In MBA class, the teacher asked the students: Why do IT manufacturers transform to cloud computing manufacturers one after another?
A student: Since cloud computing is the trend of IT industry development, IT manufacturers must keep up with the trend of technology development.
Student B: Since cloud computing is the most popular concept, IT suppliers need to inject a fashionable concept into the company's stock.
Classmates C: Since cloud computing can enable businesses to break through geographical restrictions, IT companies can serve customers around the world.
...
After the students became hot, the teacher came to a conclusion: students have certain reasons, but we should not forget that in order to become a provider of cloud computing, IT companies will be able to obtain higher economic benefits.
what? Turning to higher economic benefits? Yes, at least from the perspective of economics.
Today, the author took the time to read the research report of "Cloud Computing Industry Value Chain Analysis and Research", an MBA master's thesis on cloud computing industry value chain, quantified the articles on cloud computing investment projects, and found that cloud computing investment projects can bring better business income to enterprises.
Economic analysis basically has assumptions, and the author has carried out a series of studies on the basis of the first set:
two
After the investment and cost are clear, the author of the cloud computing investment project is analyzed:
three
According to the table above, if the Iass cloud computing project is put into use, the dynamic payback period of the project is 4.7 years, and the internal rate of return is 25%.
Internal rate of return (IRR) is a common indicator of risk income. The higher the indicator, the higher the project return rate and the higher the project quality.
For example. I voted for you today, one million yuan. Five years later, I recovered 10 million yuan from your project, so IRR=58% of the project (how do I use EXCEL, there is a formula to calculate IRR). What does this mean? It means to invest 1 million yuan today, with 58% interest per year, compounded; The income after five years is 10 million yuan.
Generally speaking, 10% of IRR is a general project, and more than 20% of IRR projects are a very good project. If you invest 1 million yuan, the annual income of 20% is also conducive to rolling, and the income difference after five years will exceed 2.5 million yuan.
Therefore, for 25% of IRR projects, IT suppliers' massive work is obviously very attractive. This also explains why many operators or hardware manufacturers have started to launch cloud computing services.
In fact, using cloud computing services is also a very cost-effective business for end customers. This article also compares the company's own server procurement and the use cost of cloud computing platform.
The investment of these two modes is as follows:
four
five
It can be seen from the above table that the net present value of IT investment in the traditional model in five years needs 1 million yuan, while the net present value of IT investment in the cloud computing model in five years only needs 600000 yuan, and the net present value of 400000 yuan can be saved in five years. Obviously, purchasing cloud computing services saves costs and brings economic benefits to end customers.
This is also a lot of practical situations. Take a more familiar home network example chain. Before 2014, the home network chain was a self built server carrying information system, but with the rapid expansion of the chain home network business, the data volume of the original IDC hosting server was facing severe challenges. In order to flexibly respond to the wave of user access (as we all know... for example, March 17, the day of Beijing's new real estate policy), since 2014, the chain home network has started to use AWS cloud services.
Chain home networks are just one example. Amazon AWS serves millions of companies around the world. They have made Amazon AWS more than 1.4 billion dollars in annual revenue. I believe they certainly understand the value of cloud computing.
In a word, cloud computing business not only benefits operators, but also benefits end customers. There is no reason why IT vendors should not do win-win things, so they are also competing to transform to cloud computing vendors.
