Should Cost Be The Overriding Factor When Choosing A Cloud Platform?

Cost is one of the primary considerations for enterprise organisations considering cloud migration. A cloud platform’s on-demand pricing and elasticity make it easier to achieve optimal utilisation than with colocated or in-house bare metal. But the cost is far from being the only benefit of cloud migration, and ignoring other factors can lead to poor vendor choices, especially for companies without large IT and DevOps teams. Security, support and management services should also be considered.

[easy-tweet tweet=”Cost is one of the primary considerations for enterprise considering cloud migration. ” hashtags=”cloud, tech, IT”]

Any company with a large on-premises infrastructure deployment is aware of the associated hardware, networking, building, and staffing costs. Migrating to a cloud platform doesn’t make those costs disappear — the cloud vendor has those costs and will pass them on. But cloud providers benefit from economies of scale that most companies can’t. Their costs are lower, and because cloud clients only pay for what they use, they don’t have to spend to maintain, house, and staff an infrastructure deployment that may be idle for most of its lifecycle.

So cost is a motive for cloud migration, but using cost as the only factor in making a decision is a mistake. Some cloud vendors — including many of the biggest names in the business — cut management services and support to the bone to compete on price.

Clients get the infrastructure and the cloud capabilities, but that’s about it. We’ve all heard stories of what happens when a cloud server goes down and takes data with it: the response is usually a shrug with the implication that redundancy and reliability are your problems, not the cloud vendors.

[easy-tweet tweet=”Cost is a motive for cloud migration, but using it as the only decision making factor is a mistake.” hashtags=”cloud, tech, migration”]

If an organisation chooses a cloud platform solely by price, they’ll have to ensure that they have an IT and DevOps department capable of making the most of a cloud platform that makes management, performance, and stability the responsibility of the client.

This is especially problematic for smaller companies that don’t have the wherewithal to build great DevOps and IT departments. Decision-makers in these enterprises should think about who is going to manage their infrastructure. Choosing a cloud vendor that offers management services may push up the price, but, because of the economies of scale we discussed earlier, outsourcing will still be less expensive than cultivating the expertise in-house.

Choosing on price alone is a significant cause failure for enterprise cloud projects. Selecting a vendor that can provide management services and has existing partnerships with domain experts is often the best way for smaller companies to make the most of the cloud’s potential.

+ posts

Newsletter

Related articles

Don’t lose sight of SAP on Cloud operational excellence

Digital transformation projects can often become complex with twists and turns, which can lead organisations to focus solely on the migration itself.

Need to reduce software TCO? Focus on people

Investing in software is undoubtedly important for enterprises to stay ahead. However, the process is rarely a simple task for CIOs and IT leaders.

The future of cloud and edge optimisation

As more enterprises use multi-cloud and hybrid infrastructures, the danger of cost overruns and loss of control increases.

Here is how to stage a public cloud migration

As the relationships between CSPs and cloud providers are deepening, CSPs need to develop a clear strategy on how they add value to customer relationships.

The future of work is collaborative

As hybrid work models continue to gain traction, businesses will need to start implementing collaborative tools and processes to meet the needs and expectations of the upcoming workforce, seamlessly integrating them into existing workflows to enhance productivity and performance. Innovations in technology, including AI and machine learning, mean that organisations are in a better position than ever to shape the collaborative future of work – and with the right support in place, they can ensure that these digital tools continue to bring out the best in their workforce for years to come.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Subscribe to our Newsletter