Australian business looking at their cloud options are being advised to learn about the total costs involved, before diving straight in
While many businesses believe the cloud can provide cheaper IT operations, actual costs can be similar to those of on-premise IT infrastructure, and sometimes even more.
That’s according to CenturlyLink, who says much of the cost derives from moving to and operating a business’ IT in the cloud, not just the cost of the cloud services.
Stuart Mills, regional sales director, ANZ, CenturyLink, says businesses must ensure they are moving the right workloads to the cloud, or risk wasting a fortune in both time and money.
“Australia has passed through the early adoption wave of cloud. We are now seeing a number of organisations trying to back out of their cloud choice, due to unforeseen high costs, an inability to move workloads into other formats, and a desire to work with more than one cloud partner,” he explains.
“For organisations to understand the financial impact of cloud, prior to adoption, they must understand the total cost of cloud ownership, or TCCO, which is calculated based on each organisation’s individual circumstances,” Says Mills.
TCCO includes the combined cost of: actual cloud resources consumed; moving the organisation’s IT to the cloud; operating the cloud; unforeseen additional fees; managing multiple vendors; and the cost of managing risk associated with cloud transitions and maintenance.
Mills says organisations should work with their cloud or service provider to assess the following factors and choose the most appropriate cloud solution that meets their needs:
“Considering each of these factors will often result in a different TCCO, even for organisations with similar needs. With a choice of four global public clouds now available in Australia, including the recently announced CenturyLink Cloud, the right cloud choice may not be the one initially expected,” says Mills.
“Organisations should work through these factors with their cloud vendor(s) or service provider to ensure they are getting the best cloud solution for their needs,” he adds.
“It is important for organisations to consider their TCCO to ensure the move to the public cloud actually delivers a positive performance and price outcome,” Mills says.
“It can also prevent the organisation from making costly mistakes which can be difficult to unwind.”