“More the hurry, more the obstacles.” – Welsh Proverb
Back in the 1980s, music and media companies devised an incredible scheme for making new and popular music more accessible and more “affordable” than ever.
The quotes around “affordable” are because, on the surface, the “buy-one-CD-get-eight-free” offer was an amazing deal that’d help music lovers get their hands on the latest and greatest tracks from popular artists, while saving them loads of their hard-earned cash in the process.
The reality, of course, is that the fine print–a contractual agreement to buy several more CDs at full value (usually heavily marked up) for a period of time in the future–ultimately drove the cost of purchasing music for consumers much higher in the long run than what they’d expected.
Something similar is happening in the IT landscape right now, as IT shops are flocking to cloud services, lured in by the promises of greater speed, agility, and cost control. As you might expect, things are not always as they seem.
Rushing to the cloud is costly
Many organizations have dived headfirst into the cloud services pool, believing it’s necessary to improve efficiency, gain flexibility, and accelerate delivery of new products or services to market. In fact over 60% of enterprise IT is expected to be run in the cloud in the next 18-36 months.
Yet, like CD club consumers of the 80s and 90s, IT leaders are quickly realizing that they also should have read the fine print. Research has shown that some of the applications organizations have moved to the cloud can cost as much as 40% more to run there than with an on-premises deployment and that cloud environments can incur up to 45% waste (usually in the form of purchasing more capacity and compute than they’ll actually need). In their haste to find greater agility and competitiveness in the age of rapid digital transformation, many firms might feel like they’ve fallen for the scam of the century.
What is an Organization to Do?
There are a number of ways to rein in the runaway costs of cloud deployments. Some companies have opted to hire full-time staff just for cloud contract selection, negotiation, and continual adjustment as needs change. But finding adequately experienced workers is challenging and hiring resources for such a narrow focus isn’t a particularly effective use of funds.
Others have chosen to just follow cloud vendors’ recommendations and chalk up the expenses to the cost of doing business. But that strategy also falls short, as cloud providers themselves have added layers of complexity by offering various cloud service pricing and consumption plans.
MSPs help control costs and keep an eye on the prize
Enterprising IT leaders have arrived at a third option for controlling their cloud costs: partnering with a managed services provider (MSP). MSPs offer the diverse professional skillsets–from contract management to helpdesk to full NOC capabilities–needed to manage complex cloud environments for the fraction of an FTE resource used.
MSPs can supply essential resources 24×7 by fielding teams in all time zones, while also providing predictable cost structures that help preserve budget dollars without sacrificing the performance, reliability, or security of your cloud environment.
There’s no denying the cloud’s benefit to today’s IT organizations. But IT leaders need to find ways to reap the benefits of cloud deployments without higher costs killing many of reasons for moving to the cloud in the first place.
Download our whitepaper “Containing Runaway Cloud Costs with Managed Services” to learn how your organization can eliminate over-allocation, streamline operations, and supplement your team’s existing skillsets, to:
- Cut cloud management costs by as much as 25%
- Improve performance and availability with service level guarantees.
- Leverage certified experts to fill critical skill gaps while more reasonably priced teams manage the routine.