Charles Makes a Point (or Two)

I've been getting push back on the idea that cloud computing has challenges becoming reality.  A lot of people seem to think it's already accomplished.  Private clouds, Amazon, Google, backup in the cloud, it's all happening. 

A thing hit me the other day while I was talking with someone about why Google Apps isn't a bigger hit in the Enterprise space (another topic for another day).  It occurs to me that one of the major reasons we aren't seeing more adoption (in addition to my other theories) is that there aren't many players.  Why aren't there many players?  The same reason a lot of 'good ideas' don't see the light of day: people haven't figured out how to really make money at it yet.

If you want to build these highly robust, highly available, highly flexible infrastructures that people can count on to run parts of their revenue-generating infrastructure (which if you want Enterprise customers you need to have), you don't go down to Best Buy and by some 1TB hard drives and some white box PCs.  You buy Enterprise infrastructure components.  That's not cheap (have you seen VMware license costs?).  This isn't a charity endeavor.  It's got to be profitable. 

Sure, you could try the Google approach with how they've built out their commodity-based infrastructure, but how many people does it then take to manage it?  People are obviously more expensive than technology, and at the scales this is supposed to work at, you need the technology or you need the people.  Either way your profit margins are slim.

This might be the biggest barrier yet.  What do you think?