While most South African businesses are harnessing the cloud, cost control and cloud budget management are a top concern, with organisations citing costs as the biggest challenge and a top factor that would prompt them to move to a new cloud.
This emerged in a recent survey carried out by Huawei Cloud, which found that key concerns when considering the move to a public cloud are understanding the full costs involved in moving to the cloud (51%) and the full costs of maintaining operations in the cloud (47%). The survey found 40% were concerned about optimising spending on cloud in the next 12 to 18 months, with 38% worried about keeping up with the constantly changing cloud offerings and pricing models. Cost considerations would be a motivational factor to move clouds for 42% of the respondents.
Neil Cummings, senior cloud solutions architect at Huawei Cloud, says Huawei Cloud is tackling the cost challenge with transparent, flexible billing and a comprehensive portfolio of solutions and services designed to minimise costs and maximise value for customers.
“With Huawei Cloud, you only pay for what you use. There are no upfront payments, which allows customers to flexibly adapt to business needs and eliminates the risk of over- or under-provisioning. By using more or taking a longer subscription, businesses pay less. Our Cost Center’s visualised financial management service helps customers analyse expenditures, track budgets and find cost-saving opportunities,” Cummings explains.
“By weaving together innovative cost management tools, practical use cases and a robust ecosystem for financial management and cost optimisation, Huawei Cloud offers a comprehensive approach to mitigate financial uncertainties and enhance operational efficiencies. Incorporating budgeting tools, forecasting capabilities and budget alerts, Huawei Cloud enables organisations to maintain strict control over their cloud spending, ensuring efficient expenditure management,” he says.
Unravelling the complexity
Cummings says one challenge in predicting cloud costs stems from the inherently variable nature of cloud services.
“The pay-per-use model, while providing flexibility, can lead to unexpected cost spikes. Huawei Cloud addresses this challenge by offering a suite of cost management tools such as the Cost Center and Optimisation Advisor, and by incorporating budgeting tools that allow organisations to set financial limits and monitor spending. Users can define budgets based on projects or services, setting alerts when spending approaches or exceeds predefined limits. The integration of forecasting capabilities using historical data allows them to predict future spending and to make informed decisions about their cloud use,” he says.
Bolstering cost management
Huawei Cloud enhances cost-saving opportunities through various discount programmes, including committed use discounts, which can significantly reduce the cost of cloud services for committed usage. Cost vouchers for proof of concept (POC) projects and engineer assistance during POC and migration phases underscore Huawei Cloud's commitment to ensuring a smooth and cost-effective cloud transition, he says.
“In addition, our solutions architects assist in application redesign, optimising for cost-efficiency and leveraging cloud-native services, which helps organisations realise tangible savings and an enhanced ROI.”
Cutting ingress and egress costs
In contrast with industry norms, Huawei Cloud does not charge for ingress or egress data transfer when using a dedicated direct connect link to Huawei's cloud. By eliminating egress data charges, Huawei Cloud not only reduces the total cost of ownership but also enhances the predictability of cloud expenditures, Cummings says. Customers can also leave Huawei Cloud at any time without data egress penalties.
Tangible savings and ROI
Cummings says: “The financial acumen provided by Huawei Cloud's cost management tools, combined with its strategic approach to skills development and application redesign support, enables organisations to achieve a leaner, more efficient cloud infrastructure. Leveraging flexible billing options, strategic cost optimisation tools and discount programmes, businesses can significantly reduce their cloud expenditures, achieve tangible savings and enjoy an enhanced ROI.”
Beyond savings, there are multiple other benefits to Huawei Cloud, he adds: “Huawei Cloud extends beyond mere cost savings into a realm of enhanced performance, scalability and security. The rich ecosystem fosters innovation, enabling businesses to scale new heights in digital transformation. The comprehensive support framework, including training programmes and solutions architect assistance, empowers organisations to navigate the complexities of cloud computing, fostering innovation and strategic growth.”
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