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Performance, security and hidden expenses are important. But you are not always going to get the CIO to respect things you say about technology. Sometimes it's a question of whether you know how to manage up. Remember: it is the technologist's job to make sure this stays up, and there is no business justification if this thing crashes and burns. And sometimes, the weapon you have in your arsenal, in all fairness, is fear. When asked 'what if we go to the cloud' say 'mmm, that's a great question, we might save a lot of money,' but also ask 'what if our data was stolen?' It's unfortunate, but that is [a way to proceed] given what the industry has become.
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