Cloud computing is no longer an upstart in the IT infrastructure environment. Enterprises of all types are adopting cloud hosting and services across their organizations. More than a third of corporate IT budgets are generally spent on cloud computing, hosting and related services. Perhaps more remarkably, that figure is also only going in one direction: up.
The rise in spending on cloud computing is partly due to the maturation of the technology. There are more options and more services available to businesses through the cloud. Yet a recent survey estimated ‘wasted’ cloud spend at as much as 45%, so with overspend clearly a significant issue, it’s important to ask – are you paying too much for cloud computing?
Why are firms paying too much for cloud computing?
It may seem strange to apply a term like ‘too much’ so widely. By definition, ‘too much’ is an amount that exceeds the value derived from the service in question. With different firms adopting different cloud computing options, it may seem tough to assess value, at least in theory. In practice, major factors explain why so many firms are paying too much for cloud computing. Those factors relate to how businesses adopt and manage cloud services and solutions, with mistakes and misunderstanding in those areas often leading firms to pay more.
Getting workloads onto the cloud is a major undertaking in any firm since migrating operations from traditional infrastructure is complex and time-consuming. And after initial implementation, things start to diverge. With set bandwidth allotments utilized by dedicated infrastructure, there’s less need for ongoing management to control IT costs. Service contracts are typically long term, while physical assets don’t change much in terms of the performance they deliver over time.
Small change, big cost
Things are different with cloud computing. Comparatively small, technical decisions can drive cost changes. Public cloud providers, in particular, make it quick and easy to set up and consume new services. The dynamic nature of cloud computing can lead to firms paying for things they don’t need while continuing to pay out for redundant services they once needed but don’t any longer.
Other ancillary costs can be tricky for firms to keep track of, too. A prime example is the somewhat hidden cost of data transfers into or out of servers between data centers which can greatly increase monthly invoicing costs. This can lead a business to pay far more for their cloud computing than expected when they signed up. And if this sounds uncomfortably familiar, what can you do to ensure you aren’t paying too much for cloud computing?
What to do to ensure you get value
First and foremost, it’s crucial to be clear about your IT needs. Before you set about migrating to a cloud solution, ascertain exactly what your company needs. What services and applications are vital to your operation? How much storage and bandwidth do you need now and will need in the future? Answers to questions like these will help you assess the right cloud computing provider for you.
You then need to look for a provider who can meet your needs. In addition to that, you want a provider who’s clear and transparent about what they offer and what they charge. THG Hosting dedicated hosting & virtual server options are varied and diverse, while the specifications of each are clearly described – and so are the bandwidth costs to your company. It’s this kind of clarity that ensures you can keep a steady grip on your ingress and egress costs.
Get a free quote today
Learn how THG Hosting can optimize your infrastructure budget