If you’ve read all the blog posts and sales flyers about the cloud, you’ve heard how inexpensive the cloud is because it lowers your data center costs, allows you to jettison a large portion of your IT staff, and cuts down on your energy footprint. Let me clarify right now: the cloud is not cheap. In fact, it may even be more expensive than your on-premises data centers and staff.
With a multi-cloud solution, your costs will be even higher than with a single cloud service, so here’s a quick guide to help you avoid sticker shock with your first cloud bill.
Compare CapEx to OpEx
Vendors often loudly tout the CapEx savings that businesses can expect when they switch to the cloud – but these same vendors often forget to mention that, although CapEx costs are often eliminated, OpEx costs have the very real potential to add up to far more than what CapEx would have been initially.
One way to keep costs down is to carefully choose what you decide to migrate to the cloud. Not all applications can or should be moved to the cloud, and not all cloud applications need to run around the clock. Pausing cloud consumption on non-mission-critical workloads during nights and weekends is called “parking” your cloud resources and is increasing in popularity.
When comparing your options, factor in your long-term OpEx costs and ask your vendor or consultant how you can keep prices down by optimizing your system with parking, a cloud performance management system, managed cloud services, or consumption optimization across the enterprise.
Factor in “The Cost of Innovation”
Just as convenience has a cost, innovation has a cost as well. Cloud platforms, such as Oracle Cloud PaaS, are known for their agility, performance, and lightning-fast implementation speed in which you can spin up a development environment in mere minutes, anywhere around the globe – and multi-cloud solutions deliver even more benefits that foster innovation.
Not only do multi-cloud systems empower your development team to use the best platform for the job when writing their code, the managed services aspect of many PaaS and SaaS options can free up capital from your IT budget so you can hire extra engineers that help differentiate your company with better development.
Look at your current development timelines and teams and run a few speculative numbers to see how much you’d save if you could cut months off of each development timeline and hire a few more developers with highly specific skillsets. Do your savings numbers help to counteract your costs?
Plan for Getting to the Cloud
Depending on your current setup, you may be eligible for a fast Lift & Shift migration or a simplified migration with custom plug-in tools that help make data transfer seamless and speedy, but often, cloud migration can be laborious and time-consuming for companies that are dependent on aging legacy systems with decades of spaghetti code. In those situations, costs add up as cloud experts work hard to re-architect your systems and migrate your workloads and data.
Though it’s true that cloud services have little to no CapEx costs, a difficult cloud migration process can often take the place of those capital expenses – and you’ll still face those OpEx charges moving forward. With a multi-cloud system, your migration costs are likely to be even higher since you’ll have to perform the migration process at least twice.
For most companies, the access to always up-to-date systems, increased scalability, and incredible flexibility are worth the costs, but for some companies the numbers just don’t add up. These businesses can’t build a business case for the cloud… yet.
Is Multi-Cloud Worth It for Your Company?
Multi-cloud solutions can exponentiate the benefits of single-cloud systems, offering even greater agility and even more of a competitive edge, but they aren’t necessary for success. If costs are a concern for your business but you still want the benefits of the cloud, you may be able to take advantage of vendor discounts that apply only to single-vendor cloud transformations, in which you buy into one vendor entirely for all your cloud needs.
Though the single-vendor solution could conceivably create vendor lock-in, you can mitigate your risk by carefully choosing your cloud provider. For instance, Oracle Cloud IaaS runs both Oracle and non-Oracle workloads in the cloud, thereby eliminating vendor lock-in opportunities.
Like all things cloud, your choice of vendor, cloud service, and IT services model is entirely your choice. The power is always in your hands.
However, as they say, “With great power comes great responsibility.” It’s up to you to make the right cloud choices for your specific needs and objectives – but you don’t have to make those choices alone.
For the past 20 years, Centroid has helped a wide variety of companies find and implement technology that makes sense for their organizations. As one of the most experienced cloud partners in the Oracle ecosystem, Centroid offers unique insight and integration opportunities for Oracle Cloud IaaS, PaaS, and SaaS solutions – so your company can be assured you’ll have the right solution for your needs, both now and in the future.
Many of today’s leading companies, including Toshiba, Subaru, and Overstock.com, have added Oracle cloud capabilities to their multi-cloud environment setup by partnering with Centroid. Learn if your organization could benefit from an Oracle cloud system when you contact the Oracle Cloud Experts.
Contact Centroid online or at (877) 868-1753 to set up your multi-cloud consultation with a cloud expert today.