Wasting cloud budget. What are the cost traps?
Wasting cloud budget. What are the cost traps?
The implementation of cloud solutions is an obvious choice for enterprises that adapt to a dynamically changing business environment. Organizations, especially those carrying out digital transformation, face challenges related to the migration of resources to the cloud. Experts of Inetum Poland draw attention to another problem - the phenomenon of the so-called cloud waste.
Creation date : Mon, 06/26/2023 - 10:13
Cloud is not a bottomless pit
The trend toward cloud computing is not slowing on pace. According to IDC, spending on the cloud in Europe in 2023 will reach USD 148 billion, and in 2026 – USD 258 billion, growing at an annual rate of 22%, in the perspective of 2026. In the context of the digital transformation of enterprises, it is worth paying attention to the problem of wasting cloud budgets. Despite Minister Cieszynski's declaration on launching a project of loans for cloud transformation, a reasonable approach to this challenge is priceless.
As the Inetum Poland expert points out, the main factor leading to unnecessary spending of funds results from the lack of proper planning of both the migration and the use of cloud-based solutions. Facing the dynamic development of technology, many companies are taking steps to transfer their on-premise solutions to the cloud without appropriate adaptation. Such a strategy may turn out to be very expensive and ineffective, not allowing you to take full advantage of the capabilities of cloud computing.
– This involves large financial outlays, the need to configure the cloud environment, and staff training. What's more, companies may be surprised by extra costs, including for data transfer between servers in the cloud, software subscriptions, or additional cloud services, which they have not previously included in their budget – explains Marek Dobkowski, Cloud Practice Leader at Inetum Poland. The cloud comes with many benefits, e.g. dynamic scaling and reducing maintenance costs by shifting responsibility for operating system upgrades to the cloud service provider. However, moving on-premise solutions to the cloud requires a wise strategy and the right modifications to use the entire potential of this technology. Those who are up to date will profit from the cloud – it is the advancement that cannot be stopped.
According to the Inetum expert, the factors that strongly influence the successful implementation of cloud solutions are the change of mentality and the ability to adapt to new technologies. Enterprises that currently operate on traditional systems may face difficulties in adapting to new, innovative solutions. On the other hand, new organizations that emphasize the development of cloud infrastructure from the start usually experience fewer difficulties with data migration and make better use of the cloud benefits.
The essence of successful migration is a thorough analysis and adaptation of solutions to the specific needs and goals of a particular organization. It is worth noting that achieving success in this field is not only the domain of new enterprises – explains Marek Dobkowski.
– Inetum Poland specializes in providing IT services based on Microsoft Azure, having, among others, the status of Solution Partner in the areas of Digital and Application Innovation, Infrastructure, and Azure Data & AI. For customers, an important aspect may be the fact that on the 26th of April, the Microsoft Azure region in Poland was launched. – Such a local data center is a guarantee of greater security and data availability – adds the Inetum Poland expert.
Education is the key to success
Although training is an important tool in the process of implementing cloud solutions, it may not be sufficient. It is important to establish cooperation with experienced partners who have the right know-how. Entrusting the process to experienced external consultants allows you to avoid common mistakes. It also increases the chances of successful implementation and further functioning of cloud solutions. The competence gap is one of the barriers to migration.
– It is important that support was not limited to the implementation phase. The continuous development of cloud technologies requires sustained support in the long term – says the Inetum Poland expert. This allows flexible adaptation to the evolution of the cloud and optimal scaling of solutions to meet current, dynamically changing needs. It also allows you to operate more freely in a constantly evolving reality.
It is necessary to introduce rules and organize them properly
Nowadays, more and more companies are opting for cloud technologies for data storage, analysis, scaling, and automation. In order to take full advantage of these solutions, it is necessary to implement appropriate information management policies that ensure data security and confidentiality. For companies, security is one of the biggest migration-related threats. In this context, businesses should also carefully consider which data should be stored in the cloud to avoid losing strategic information. In the opinion of Inetum specialists, scalability and automation are key factors in this regard.
Scalability is a domain of cloud solutions
The scalability of the organization can help to adapt to current needs. And this translates into the optimal use of the infrastructure. Process automation allows you to effectively manage resources and increase operational efficiency. This is especially true for businesses that are characterized by seasonality.
– A good example would be travel agencies, which often use the scalability of cloud solutions. This directly translates into financial benefits. You can clearly see the seasonality in the load on their systems. Especially when customers' interest in holidays is much greater, these companies can dynamically increase the efficiency of their systems. This way, they provide customers who use their solutions a greater satisfaction, thereby creating a positive user experience. It is priceless – sums up Marek Dobkowski.