TechMiso

Just as cloud computing picks up steam and recognition, Coghead’s PaaS cloud is closing down on April 30, 2009. Their failure to raise funds and monetize their business model is forcing all Coghead users into offloading data and rewriting their specialized drag-and-drop database applications.

Coghead’s conundrum is one to take note of and typical of the risk involved with moving operations into a cloud computing environment. Lose your cloud provider and your faced with data migrations, application redesign and even worse – company downtime.

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Consider the cost involved with upgrading an email system for the company with a thousand mailboxes. Add up software, storage, servers, engineering and days [or weeks] of implementation, well, you’re staring down a bill close to $150K or more. On top of that add recurring maintenance, disaster recovery, and sys admin — you’re looking at almost doubling costs in the first year alone.

Then, you’re married to this system for 5 to 7 years. [Same goes for corporate productivity software like word processors, company portals, IM and so on.]

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