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IBM's mainframe strategy and information agenda encompasses both proprietary and open source software. Cloud computing has emerged as high-speed connectivity has improved and virtualization adoption has grown. Price/improvements in hardware have been driving forces both in cloud computing and virtualization. However, there may well be an unjustified optimism as to the certainty with which cloud computing will reduce personnel and software costs and streamline IT operations.
Cloud computing can help an enterprise save on infrastructure expenditures, but this will not automatically translate into a reduction on total cost of ownership. In an era of heightened security, hosting applications and data outside the firewall has both risks and costs. There is also the added complexity and cost of integrating applications in the cloud with the other enterprise applications used within an organization.
