International Data Corporation projects that annual worldwide spending on public cloud services and infrastructure will increase at a compound annual growth rate of 21.9 percent, increasing to $277 billion in 2021 from $160 billion in 2018.
Major public cloud providers AWS, IBM, Google Cloud, and Azure are cutting prices as they compete for market share. But securing the best deal can be difficult because pricing models are increasingly complex.Ask potential vendors questions such as:
- What types of instances do they offer?
- What are the terms and conditions for those instances?
- What would be the benefits if you were to commit to terms such as one year of service or three years?
Public cloud pricing can appear to be straightforward and inexpensive, but can actually be complicated, unpredictable, and often a higher cost overall.
Private cloud gives you the customizable, flexible, and scalable features of public cloud with the increased control, computing power, and security you need for critical systems. You also may find that it would be cheaper than public cloud services after you work through the complexities of the public cloud.
The global private cloud market is comprised of dedicated private cloud and virtual private cloud services.
Factors to consider in pricing for VMWare and other private cloud providers include:
- Computing power
- Public IP addresses
Hybrid cloud computing offers spending flexibility by mixing internal and external cloud services. When evaluating costs of a hybrid cloud environment, account for expenses such as costs for your platforms, infrastructure software, and applications integration. You also should consider factors like compliance and software maintenance.
Almost 90 percent of enterprises have adopted a multi-cloud strategy or plan to, according to Forrester Consulting. The ongoing proliferation of IoT devices and the need for big data analytics is driving the shift, along with enterprise revenue goals and demands. Cost-effectiveness is one of the benefits of adopting a successful multi-cloud strategy.Variables to consider when selecting multi-cloud management technology include how best to manage workloads and application performance prior to transitioning.
Ask these questions
when selecting multi-cloud technology:
- Are there resource management tools?
- Will I have access to automation and provisioning?
- Is it scalable?
- What is the cross-platform interoperability?
- How can I ensure compliance, governance, and reporting?
- What types of support and training are available?
Other Costs to Be Aware Of
You may have additional factors to consider if your company develops software. If DevOps is important to your organization, consider costs associated with reducing downtime and providing scalability.
According to a Forbes article on the relationship between the cloud and DevOps, “Companies that focus on operations for developers often use cloud computing to speed developer productivity and efficiency. Cloud computing allows developers more control over their own components, resulting in smaller wait times.”
Container cloud computing lets development teams achieve next-generation software delivery more efficiently than traditional virtualization. Developers can spin up new instances free of constraints and tooling conflicts. They also can collaborate with sysadmins by sharing updates and changes, as well as linking and testing against the application. Consider the capacity you would need for containers and the associated costs.
Economics of scale and the enterprise IT team
Running multiple operating systems at economy of scale and IT infrastructure components can pose risks. Mitigating those risks could require additional expenses, such as custom-built solutions for multiple operating systems and IT infrastructure components.Management consoles and automation can help you find possible problems caused by team members and streamline processes to avoid human error and mitigate risk.
You also may want to consider managed services providers that can custom-build solutions to address issues such as operating systems, security and compliance, backup, disaster recovery, and storage. Managed services providers often have proven processes in place to improve efficiency at scale, which allows your enterprise IT team to focus on strategic initiatives and business goals.