By Vyom Gupta, EVP, Enterprise Cloud Solutions
Transitioning to the cloud can result in significant cost savings that could have a big impact on your bottom line. By moving from on-premises infrastructure to the cloud, your business can save between 30 to 50 percent.
However, converting to the cloud requires careful consideration and planning. There are different kinds of cloud services and the best one for your business depends on your needs. Depending on your business requirements, moving to the cloud can offer different opportunities to save money or resources. smartShift Technologies can help you determine what kind of cloud services are right for your business and how to reap cost savings by transitioning to the cloud.
Ways to Save with the Cloud
Whether your needs are best suited to public, private, or hybrid cloud, there are cost-saving strategies that cut across varieties of cloud services. You should assess your application resource needs and peak-use periods to get a thorough understanding of your requirements in order to “rightsize” your cloud resources. If you choose a resource with more CPU, memory, or storage than you need, you can end up losing a significant amount of money. Gartner estimates that “over-provisioning” can cause organizations to overspend by as much as 70 percent. Choosing a provider that offers auto-scaling can help. Auto-scaling should allow you to grow or shrink resources based on shifting application needs. Finally, a good Cloud Management Platform (CMP) for monitoring and reporting, used effectively, can unlock additional areas to save money.
One final money-saving tip: many cloud vendors are providing discounts these days. Select a plan that provides a discount for committing to use a minimum size/set of resources, and you may reap additional cost savings.
Some cost-saving strategies are unique to the type of cloud services you are using. Below are a few more tips on how to save using specific types of cloud services.
If the public cloud turns out to be the right choice for your business, then there are many opportunities for cost savings, but also important considerations to review before making the jump. First and foremost, any business looking to make the move to the public cloud needs to first understand the nature of cloud architecture and what it will take to make legacy applications cloud-ready. A quick lift-and-shift of applications to the public cloud sounds incredibly appealing, but it is often more complicated than that. Make sure you choose the right partner with the expertise to plan your transition and the flexibility to deal with the unexpected.
In the private cloud, unlike the public cloud, you have to buy hardware upfront. It is important to create a capability plan (or work with a reliable partner to do so) to understand your business growth and feature needs to make sure you do not end up paying for wasted capacity. Utilization and labor efficiency must be relatively high to take advantage of private cloud cost savings. For this reason, picking the right management tool for provisioning, monitoring, and reporting is essential.
A hybrid cloud system is a mix of public and private cloud services. Saving money with a hybrid cloud comes down to how you divide the use of public vs. private. Use the public cloud for testing and training environments as well as for spikes in application traffic. Use the private cloud for static business-critical operations. In a hybrid cloud, “cloud bursting” is an option that can help save on costs. Cloud bursting is when an application runs on the private cloud until there is a spike in demand, at which point, it can “burst through” to the public cloud to tap into greater capacity.
If you are using multi cloud strategy, good management tools are absolutely indispensable. Use cloud agnostic scripting automation such as Terraform to build and manage infrastructure such that it can be used across different providers. You can also use price competition between vendors to your advantage.
Transitioning to Cloud Computing Can Mean Big Cost Savings
The promise of the cloud is more efficient use of resources that can enable your business to save money. However, in order to take advantage of this opportunity, it is important to have the right people managing your infrastructure. That is the key to success. If you are thinking about how your business can leverage the promise of cloud computing, let smartShift Technologies help you explore the possibilities.