Cloud Data Centers and Cost Modeling

Part V. Cloud Strategy and Critical Decision Making

Part V is the last part of this book. It only consists of two chapters. The main focus of this part is to address macro issues of cost. When we are building a cost model we often pay too much attention to the trees but miss the forest. This is why Part V discusses the topic of cost modeling at a strategic level.

If we see cost modeling as a vertical process, then the first study case shown in Chapter 3 is a bottom-up process to establish a cost model. It is often applied to the scenario of operating cost rationalization in a mature business environment. In both Chapters 17 and 18, we will focus on a top-down process to build up a cost model. It is normally dealt with in a new business environment, ...