[thequux]

In that case, you don't want cloud; you want an MSP, whose core competence is running those IT services. They, in turn, have the skills to colo a rack at a DC or to manage rented servers, amortized across a number of clients.

In practice, there are two situations where cloud makes sense:

1. You infrequently need to handle traffic that unpredictably bursts to a large multiple of your baseline. (Consider: you can over provision your baseline infrastructure by an order of magnitude before you reach cloud costs) 2. Your organization is dysfunctional in a way that makes provisioning resources extremely difficult but cloud can provide an end run around that dysfunction.

Note that both situations are quite rare. most industries that handle that sort of large burst are very predictable: event management know when a client will be large and provision ticket sales infra accordingly, e-commerce knows when the big sale days will be, and so on. In the second case, whatever organizational dysfunction caused the cloud to be appealing will likely wrap itself around the cloud initiative as well.