More enterprises are migrating to the cloud amid the pandemic, but how can they keep away from the risks of expenses beyond expectations?
A vast majority of businesses are operating in a scattered manner and have moved their operations online due to the spread of COVID-19. Organizations are increasingly dependent on cloud services as it is helping respond to uncertainty and adopting new technology platforms. This led the public cloud services market to soar high. Simply put, many organizations realized the potential of cloud in order to rapidly scale and set up new services – especially for remote workers.
Cloud Migration and its Associated Sudden Expenses
The cloud spending globally has hit a record of $34.6 billion in the second quarter of 2020, indicating a 30% surge YOY – claims the latest Tangoe study. Besides, there has been an 11% rise from the Q120. It is also anticipated that almost one-third of the IT budgets will be allocated to cloud services by the next year.
As mentioned by Brandon Henning, CPO at Tangoe in the company blog post – “Given the cost pressures, many companies find themselves under because of the current economic environment, they must employ a strategy for cloud investment that provides the best service to their organizations, while optimizing both their cloud infrastructure and corresponding spend.”
Experts noted that companies need to be prepared and have things in place to tackle the burden of unexpected cloud migration expenses. At the same time, it was noticed that more users (mostly employees) are adopting self-service infrastructure to keep up work from home. Thus to improve overall efficiency and maximize cloud investment, businesses should follow specific approaches.
Having Clear Visibility for Usage
The fundamental understanding of how the workforce is leveraging cloud technology represents a crucial role in assessing the actual ROI of such initiatives. It includes analyzing how the usage has evolved over time to get insights and forecast – where investment is still needed.
The visibility demands to go ahead of the IT department and extend into different parts of the business, including finance, marketing, etc. This is to ensure that professionals are aligned on how this cloud spending benefits the overall business.
Re-thinking Cloud Infrastructure for Optimizing Spend
It is essential to understand the infrastructure purchased and its alignment for optimizing the spend as well as cloud contracts. Businesses may switch to different vendors, accept or decline reserve instances to optimize infrastructure, deals, and spend rightly. This demands the right tools at the right place to offer the necessary visibility.
Unsurprisingly, there is no debate about the fact that the cloud is primarily driving the way businesses are functioning at the moment. The capability to develop and manage such ecosystems would be the significant differentiator – to successful, prolonged business models.