There’s no doubt that cloud came to the rescue of many organisations in 2020, and continues to do so now. But two years after the onset of the pandemic, some firms are severely rethinking their cloud strategy due to spiralling costs and a lack of Return on Investment (ROI), which are catching the C–suite by surprise.
The perception that ‘cloud can save costs’ is still true, but only if it's harnessed in the right way. And some businesses are now finding out that the speed to deploy doesn't always mirror the speed of ROI, as our CEO Tim Mercer discusses…
From 2020-2021, global cloud expenditure increased by 24.6% according to IDC’s worldwide Cloud Spending Guide. This significant uplift shows the rush with which companies deployed cloud services, which might have otherwise taken them years to consider, shortlist, and roll out.
Migrating from on-premise to cloud solutions was never going to be a small feat, and for many, the pandemic forced their hand. With little time to research the best approach and how to maximise cloud computing for their individual requirements, some CIOs chased after the dream of a ‘one-size-fits-all’ approach, which unfortunately rarely exists.
Now, many are left dealing with massive overhauls of services that didn’t quite hit the mark, or are still halfway through migration journeys wondering if they’ve made a mistake. All the while, they are handing unimpressed CFOs extortionate bills with little or no ROI to show.
Another issue adding more pounds to monthly budgets is the fact that the cloud unlocks so many more opportunities, all at a click of a button. For years, businesses have been accustomed to making the most of what they have available on-premise. But when migrating to the cloud, they are given access to an infinite amount of resources at their fingertips. Whilst this is exactly why the cloud is so great, it can also come with significant costs – again, if a strategy isn’t in place.
But there are ways to tame spiralling budgets before it’s too late.
A cloud migration during the uncertain global pandemic may have meant IT teams opted for the seemingly less risky strategy of deploying a hybrid environment. Whilst this comes with its benefits – like mitigating downtime – it also means that businesses are managing and paying for on-premise legacy infrastructure, which could now be decommissioned.
This could make a big difference to overall spending due to the reduction in maintenance and human resources needed to manage on-premise technology.
Public cloud offerings were an attractive option during the pandemic due to their accessibility and ease of deployment. And whilst this may have plugged a gap during pressing times, other options may have been overlooked – such as a private cloud environment.
Now, organisations have had a couple of years to access and understand their needs in the public cloud, it could be hugely beneficial to explore opportunities in the private cloud. This could also reduce the issue of over-consumption facing developers by honing in on specific needs and future innovation plans before jumping straight in.
A cloud specialist, like Vapour, can work with organisations to put together a private or hybrid cloud strategy within agreed budgets – and with a clear timeline on ROI – therefore eliminating confusion and wait times for other managers expecting to see results.
The rush to cloud and the attractiveness of offerings during the pandemic – not to mention discounts on significant investment – may have swayed CIOs to overcommit in certain areas. So, if they are now wondering why costs are so high and why they’re not seeing the expected ROI, it could be as simple as re-assessing cloud computing needs to ensure they are ‘right-sized’ and aligned with expenditure.
Just remember, the cloud is flexible for a reason and so if you are seeing sky-high bills, why not talk to one of our advisors to better understand your options? Click here to get in touch.