Data Centers 1, Clouds 0

Management consultants McKinsey & Company released a report on the economics of cloud computing, speculating that many companies may end up spending more on cloud-based services than on maintaining their own data centers. McKinsey calculates that the CPU per month TCO for a cloud architecture for a cloud-based infrastructure service may be 144% more than that of a typical data center. McKinsey advises IT executives to focus on more approaches that enhance data center efficiency, such as "aggressive virtualization."

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