I agree with Jason Bloomberg that the major economic expectation of those who plan moving into Cloud is based on savings attributed to “pay-as-you-go, pay-for-what-you-need utility computing” but I really doubt that the Cloud providers do or will pass the savings from their economies of scale on to you, the customer. Well, they might but they do not need. I also disagree with “The utility benefit is also a central premise of Private Clouds” – a content of SW in Cloud does not depend on the form of Cloud deployment.

Read the entire article at http://www.ebizq.net/blogs/service_oriented/2012/04/expected_unexpected_cloud_economics_pitfalls.php.

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