Any business discussion around cloud still focusing on 'should' we or 'shouldn't' we make the move is irrelevant because the benefits of this move are well-documented and proven.
Today's conversation around the issue centres on the cost of cloud versus the benefits of migrating key content and process management solutions to the cloud. Indeed, it is a dilemma many organisations face: yes, cloud is essential to modern business, but it is getting increasingly costly.
But before we move into the realms of cost versus benefit, let's unpack cloud and some of the terminology surrounding it.
Private versus public cloud
Gartner predicts that global spending on cloud services will reach over $482 billion this year, astoundingly up over 50% from $313 billion in 2020.
As organisations evaluate the best cloud solutions to fit their needs, private cloud remains a top option for regulatory and security reasons − I will expand on this later in this article.
Start by understanding exactly what you are purchasing by examining what solutions you need the cloud to deliver.
As companies continue to re-evaluate their technology needs, how can they know if a private cloud approach is right for them?
Let's unpack the benefits of private cloud right now − they include improved resource utilisation, reduced costs, increased security, regulatory compliance and greater flexibility.
How do you decide which is right for your business − private cloud ownership or public infrastructure?
Start by understanding exactly what you are purchasing by examining what solutions you need the cloud to deliver.
Public cloud (Amazon Web Services, for instance) provides greater scalability − leveraging IS, allowing SaaS providers to focus more on their mission-critical applications to their customers. Private cloud provides options for businesses hesitant to adopt public cloud − it isolates workloads onto dedicated hardware to ensure performance activity and yields reduced costs; scalability is achieved through physical hardware.
When adopting public cloud, companies gain the benefit of the fact that a portion of their compliance is already taken care of by the provider and there are fewer controls for staff to have to manage. With private cloud, companies have full control over the regulatory environment − they can implement policies and procedures (more strict or lenient, as you choose) to achieve goals.
Private cloud provides complete control over data and applications, whereas public cloud providers allow organisations to infinitely scale resources as they grow their users or traffic volume to their applications and software. Again, we come down to the question of companies examining needs, security posture and which is the better fit.
Inherent value of cloud software
A CloudZero study surveyed over 1 000 engineering and finance professionals on cloud costs, business value and priorities in enterprise companies and the state of their cloud cost intelligence. It explored how companies can better understand the value of their cloud software and how it can ultimately save company money.
Interestingly, this survey found that only three out of every 10 companies knew exactly where their spend was going. This data reflects the need for those driving cloud strategy to have clear insight into where their spend is going, so they can fully realise the advantages the cloud offers to an enterprise.
CloudZero found cloud cost intelligence provides companies with visibility into every aspect and cent of their cloud spend. It also highlights the costs of specific products, features and teams; the causes of sudden cost spikes and the tools to assess spend through a lens of business context.
It notes that cloud cost intelligence turns cloud spend from a liability into an asset, from a blind spot into what it calls “the fuel for better business outcomes”. This is powerful language with responses from a roughly 50/50 split between finance and engineering professionals.
CloudZero's first major finding was that organisations view cloud spend as a high-priority issue, with respondents noting they spend too much on the cloud and that focusing on it is more of a priority this year than last year.
It highlights that if excessive cloud spending was a fringe issue in years past, it has now moved to front and centre of cost priorities lists. A massive 73% recorded the fact that cloud cost is either a C-suite or board-level issue.
The study also focused on whether the companies surveyed possessed a cost ownership culture and found that a strong cost-conscious culture correlates with better business outcomes, such as improved confidence in reporting accuracy, better visibility and less excessive spending.
Cloud cost is an issue that impacts both engineering and finance teams − the survey revealed that businesses are investing in FinOps teams and sharing the responsibility. It noted that high-performing DevOps teams are likely to consider cost at an earlier time in the software lifecycle.
In my next article, I will expand on cloud cost versus benefit.
Share