As Cloud Demand Rises, So Does the Importance of Managing Costs

As Cloud Demand Rises, So Does the Importance of Managing Costs

The COVID-19 pandemic has made organizations of all sizes more dependent on cloud-computing. With the increased demand of cloud resources stemming from remote work and state lockdowns, cloud-related spending is on the rise. In fact, Gartner is forecasting the cloud services market to grow 6.3% in 2020 to total $257.9 billion, up from $242.7 billion in 2019.

But with reliance on cloud comes concerns for IT leaders about available budgets and managing cloud costs.

According to the IDG 2020 Cloud Computing Study, controlling cloud costs is one of the two top challenges for IT decision makers (data privacy and security challenges are the others). These issues have become only more acute since the pandemic.

When companies speak with us, they often ask how they can control cloud spending and avoid surprises in their bills. Here are a few suggestions you’ll want to consider:

Cost to Store Data: When you migrate all or part of your data from your on-premise environment to the cloud, your cost model changes. Instead of purchasing hardware to meet your needs at peak levels, the cloud enables you to pay for only what you use.

Cost to Retrieve Data: With your data in multiple locations, you will also need to consider the cost of retrieving your data. How many transactions will you need to access, retrieve and restore data? What will it cost to retrieve data stored in the public cloud compared to the cost to retrieve data stored in a private cloud environment?

Cost of OPEX/CAPEX model: One of the most significant benefits of choosing to migrate a portion of your infrastructure to the cloud is the ability to shift your data costs from a CapEx model to an OpEx model. Not only will this reduce the need for expensive upfront capital investments in hardware, but you can also reduce the need to invest in hardware in the future. When your data and computing capacity is in the cloud, your service provider will manage the ongoing hardware maintenance from initial implementation through end of life—you won’t need to.

Understanding your hybrid cloud permutations and building your strategy is incredibly challenging, and the industry is evolving at a rapid pace. Managing your data and applications will only grow more complex, and the risk of putting your organization in a subpar situation will only increase.

As a trusted partner to organizations like yours for over 20 years, IPR Secure can help you find the ideal configuration for your data and computing resources using public cloud, IPR private cloud and your own on-premise cloud. We will provide the insight you need to know whether your costs and operations are optimized—or if you can capitalize on changes to your cloud environment.

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