Cost-Effective Cloud Computing is possible if you look in the right places.
s business IT needs continue to expand, many IT professionals are reviewing whether they should choose an on-premise data center vs cloud-based infrastructures. Most businesses know their IT resource needs will only grow in coming years. Is there such a thing as cost-effective cloud computing? And how will these costs change as businesses grow?
If you’re asking similar questions, you’re not alone. Research commissioned by Dell EMC showed multi-cloud environments are now in use by 84 percent of enterprises for reasons of perceived speed, cost, and agility benefits. 63 percent of enterprises polled now have a formal strategy or pilot in place for hybrid cloud. It seems there is a lot of interest in cost-effective cloud computing.
Yet another study by Dell and IDC showed a five year ROI of 640% for modernizing applications through hybrid cloud environments.
These benefits certainly appeal to the cost-focused CIO or IT manager. However, hidden complexities in cloud data management make cost-effective cloud computing less straightforward than you might think.
The True Cost of Growth
The cost of operating in the cloud is often underestimated when evaluating data management solutions. Yes, your organization will need to perform an initial migration to the cloud. But once there, you’ll need to constantly move large amounts of data into and out of your build-out.
Another major consideration is network ingress (traffic into the local network) and egress (traffic out of the local network). In our experience, egress is one of the top hidden costs of a cloud-only environment. This is especially true for companies utilizing international servers as data fees increase in some countries.
If your business grows and you need to move even more data, egress costs pile on quickly, making cost-effective cloud computing harder to achieve.
Are Cloud-Only Solutions Cost Effective Cloud Computing?
Data movement fees aren’t the only unexpected costs business face when using cloud-only build-outs.
As expected, cloud-only solutions put your business entirely in the hands of your cloud service provider. This means service interruptions, though rare, completely lock away your data and applications.
Since the cloud security is out of your business’s control, managing data security risks becomes difficult. If your business works with sensitive data (i.e. the healthcare, education, or finance industries), you’re liable for data breaches. Businesses subject to international laws like the recent GDPR (which applies to every business serving EU citizens as customers), then a pure-cloud solution might not be ideal.
Finally, cloud-only solutions typically don’t scale, delivering a 1:1 cost/benefit ratio. You get exactly what you pay for, which can be good. But these benefits don’t scale.
Despite these concerns, there are times when a cloud-only infrastructure is a cost-effective data management option. For example, if you can’t predict data usage. Need a sudden burst of capacity? A cloud-only built-out delivers this easily and could be a cost effective cloud computing solution for you.
Finding Scalable Benefits with Hybrid Cloud Infrastructures
Unlike cloud-only solutions, hybrid clouds combine benefits from your on-premise resources with cloud-based resources. This can provide the best of both options, delivering scalable benefits that outpace the costs for many businesses, giving you true cost effective cloud computing.
If your business experiences any of the following, you should explore hybrid cloud environments:
- steady, predictable growth rate for your IT needs
- Demand control over your data security for compliance, privacy or liability reasons
- You want to know exactly what you will spend on your IT environment
- You’re spending too many resources on IT network management and need to divert funds elsewhere
As numerous studies show, most organizations gain significant cost benefits when using a hybrid cloud build-out. Small, medium, and enterprise IT environments can achieve cost effective cloud computing after implementing hybrid clouds.
Logical Front Helps You Identify the Most Cost-Effective Cloud Computing Solution
With so many hidden factors affecting the true cost of cloud computing, knowing which choice is right for your business IT environment can be challenging. Logical Front’s unique hybrid cloud solution can more than likely help you gain the right combination of cloud and on-premise benefits.
We only recommend cost effective solutions tailored to fit your unique needs. And offer a free, thorough assessment of your IT needs, then apply our experience to uncover any hidden costs before you make a decision. Learn about the cloud solution from Logical Front and contact us today.