As cloud computing vendors compete increasingly on price alone to prove the economics of the cloud, the "race to the bottom" is resulting in a commoditization of cloud that focuses solely on replacing hardware while neglecting the services and service level agreements that business rely on from production computing environments.   This difference between what can be delivered at ever-decreasing prices and what organizations need to succeed represents a challenge that will have to be overcome for large-scale adoption of the cloud.

ENKI's Dave Durkee recently wrote a paper discussing this challenge in detail, "Why Cloud Computing Will Never Be Free", published in the May issue of the Communications of the ACM.

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