Not to be outdone, Google has challenged the recent McKinsey report championing virtualization over cloud computing, which said that while the cloud may be good for SMBs, it's not ready for enterprise use. According to Rajen Sheth, Senior Product Manager, Google Apps, the real cloud lets companies "leverage hardware infrastructure, distributed software infrastructure, and applications that are built for the cloud, and let us run it for them. This offers them much lower cost applications, and removes the IT maintenance burden that can cripple many organizations today. It also allows customers to deliver innovation to their end users much more rapidly."
Sheth says that McKinsey's conclusion that cloud computing was more expensive than running your own data center "only considered the hardware cost savings of the cloud" and left out the benefits of lower cost applications, removing the IT maintenance burden, and speeding innovation.
InformationWeek's Charles Babcock recently defended the concept of the private cloud, but I'm not sure I agree. I have no issue with the concept or the technology, but the name bugs me. If you ask me, when you're talking about something that's private or internal, it may still have value, but it's not really a cloud.
As the enterprise world battles back and forth over the technology, the business benefits, and the semantics of cloud computing, small and midsize businesses can take heart in the notion that almost every objection to cloud computing has less applicabiltiy to them.