XFER has been serving Michigan since 1994, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses.

Is Your Cloud Solution Actually a Money Pit?

Is Your Cloud Solution Actually a Money Pit?

The cloud has proven to be an extremely useful tool for the modern business. Not only does it provide anywhere-anytime access to applications, processing, storage, et al; it also delivers those products as a service, allowing you to budget for recurring costs rather than major upfront ones. This provides your organization with functional, supported, and secure computing environments that eliminate a lot of the support costs that traditional computing environments require. It sounds like a perfect scenario for small and large businesses alike, but things aren’t always what they seem, as a lot of cloud users have found that they have incurred several hidden costs by using cloud platforms. Today, we take a look at these hidden costs.

A study from Research In Action polled 468 CIOs about their cloud usage and the costs associated with them. Many admitted that cloud investment was one of the largest expenses their organization would have from a technology point of view. The study went on to find that while a majority of CIOs considered the “hidden” costs of this technology, much of the concern is alleviated by the reputation of their vendors. Some of the potential problems they considered include:

  • Having to put forth more effort to properly manage vendors, and their corresponding Service Level Agreements (SLAs).
  • Bottlenecking and the impact poor cloud performance could have on brand perception, productivity, and customer support.
  • The increased cost of solving complex problems inside cloud environments.

Are these concerns justified? Sure, but they are hard to measure. Many businesses just haven’t developed a system to properly quantify the perceived loss in revenue tied to cloud inefficiency. In fact, most companies don’t have updated, automated methods in use to track and manage their cloud performance.

Costs of Scalability
Many organizations also run into cloud cost overruns when dealing with the scale of their cloud platforms. Costs associated with over-provisioning (buying too much), under-provisioning (buying too little), management, and administration of cloud hosted environments present costs that may not look significant up front, but over time can have negative effects on the overall profitability of a business. Understanding the amount of space/processing you’ll need to meet your organization's needs is almost always going to be a fluid situation, but understanding how they affect your business’ bottom line is crucial to mitigate unwanted monetary responsibilities or cost overruns associated with the cloud platforms you utilize.

Going Too Far
Cloud platforms are nice, but you don’t have to look much further than your personal situation to see how the ease of use these platforms provide can get expensive pretty quick. For the individual, costs add up quick thanks to cloud-based streaming media and other platforms that come in a subscription model. You’ve got Netflix, Spotify, Hulu, and many, many more that are relatively cheap. Microsoft Office 365 is exceptionally useful and affordable, providing unparalleled value for about any computer user. The more you subscribe to, the more costs add up, which is why you’ll want to design, and stick to a dedicated plan to avoid overextending yourself, or your organization.

Utility computing in the cloud, whether it be applications, storage, processing, or some other form, is extraordinarily valuable, but only if you understand how to avoid paying more than you should for your cloud assets. The knowledgeable technicians at XFER can help you come up with cloud deployment strategy, while also helping you avoid cost overruns typically associated with these assets. Call us today at 734-927-6666 / 800-Get-XFER to learn more.

Is Cloud Storage Going to Work for Your Business?
Does Outsourcing Your Business’ Network Security M...


No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Sunday, August 19 2018
If you'd like to register, please fill in the username, password and name fields.

Captcha Image

Mobile? Grab this Article!

QR-Code dieser Seite

Tag Cloud

Security Technology Tip of the Week Privacy Microsoft Internet Cloud Best Practices Saving Money Backup Software Managed Service Provider Workplace Tips Business Computing Small Business Hosted Solutions Hackers Google Productivity Data Hardware Mobile Office Mobile Devices VoIP Gadgets Email Quick Tips Malware IT Support Network Efficiency Social Media Business Management Innovation IT Services Network Security Miscellaneous Business Continuity Smartphones Server Virtualization Business Upgrade Windows Disaster Recovery Communication Microsoft Office Managed IT Services Users Communications Computer User Tips Mobile Device Management Passwords Data Backup Android Browser Smartphone Marketing WiFi Holiday Save Money Alert Data Recovery Vendor Management Tech Term Operating System Ransomware Mobile Computing Cybercrime Remote Monitoring Outsourced IT Windows 10 Computers Avoiding Downtime Internet of Things BDR Bring Your Own Device Cloud Computing Apple BYOD Information Technology History The Internet of Things Best Practice Chrome VPN Automation Router Telephone Systems Big Data Remote Computing Going Green Current Events IT Solutions Trending Application Artificial Intelligence Collaboration Hacking Phone System Social Engineering Facebook Wireless Technology Firewall Cybersecurity Spam Employer-Employee Relationship IT Consultant Health Excel App Managed IT Services Bandwidth Printer Money Lithium-ion Battery Proactive IT Office Budget Maintenance Windows 8 Recovery iPhone Networking Content Filtering How To Business Intelligence Business Managament Two-factor Authentication Fax Server Mobility Applications PowerPoint Unified Threat Management Data Security Value Customer Relationship Management Hard Drives Website User Error Managed IT Mouse Gmail Humor Outlook Tutorials Antivirus Private Cloud Virus Apps Data Protection Redundancy Analytics Law Enforcement Phishing Office 365 File Sharing Memory Network Congestion Conferencing IT Support Identity Theft Tech Support Vulnerability Save Time Tablet Sports Search Google Drive Twitter IT Management Office Tips Inbound Marketing Document Management Compliance Streaming Media Risk Management Flexibility Analysis Entertainment Administration Retail Saving Time Productivity Mobile Device Data Management Social Networking Digital Payment Computer Repair Blockchain Connectivity Downtime Windows 10 Word Encryption Comparison Black Market Hacker IBM Best Available Piracy Windows 7 Cleaning Password Administrator Bluetooth OneNote Wireless Physical Security Leadership Public Cloud People SaaS Scam Robot Samsung Computer Accessories USB Data Storage Access Control Credit Cards Online Currency Work/Life Balance Data Breach Smart Tech Data storage Training Social Point of Sale Servers Recycling CES Workers Internet Exlporer Education Machine Learning eWaste Information PDF IT Plan Statistics HaaS End of Support Safety Wi-Fi Touchscreen Content Management Instant Messaging Skype YouTube Programming Data loss Government Environment Unsupported Software Settings Paperless Office Meetings Infrastructure Webinar Running Cable Spam Blocking Augmented Reality Human Resources Intranet Update Biometrics Video Surveillance Wearable Technology DDoS Solid State Drive IT service Business Owner Virtual Assistant Advertising Webcam Printer Server Shortcut Windows 10s Cache Telephony Unified Communications Windows 8.1 Update Distributed Denial of Service Files Google Docs Staff Worker Commute Devices Chromecast Online Shopping User Display Charger Cast Password Management Business Mangement Bloatware HIPAA Inventory Remote Monitoring and Maintenance Managing Stress Domains Debate Hiring/Firing Healthcare Botnet Science IoT Telephone System Notifications Data Warehousing Specifications Wireless Internet PC Care Start Menu Theft Colocation Scheduling Voice over Internet Protocol Digital Signature Hosted Solution Thought Leadership Laptop 3D Regulations Evernote Computer Care NIST Travel Criminal Entrepreneur Keyboard Line of Business Shadow IT eBay HBO Macro Electronic Health Records SharePoint Tablets Hybrid Cloud Millennials Co-managed IT Audit Wire Alerts Mobile Cortana Cryptocurrency IaaS Computing Infrastructure Multi-Factor Security Strategy Windows Media Player Virtual Desktop Netflix Content Filter Touchpad Wireless Charging Hiring/Firing Cost Management Authentication MSP Legal Text Messaging Frequently Asked Questions Fraud IT Security Root Cause Analysis Relocation Upgrades Analyitcs Supercomputer Insurance Gaming Console Workforce Print Server Computer Fan Smart Office Monitor Work Station Professional Services Google Apps Safe Mode Lifestyle nternet Customer Service Crowdfunding Storage Flash Fiber-Optic Remote Support Software as a Service Nanotechnology Tip of the week Amazon Consultant HVAC Company Culture Knowledge Practices Managed Service Telecommuting Law Firm IT FENG Reputation Tools Accountants Business Technology Internet exploMicrosoft Cameras Patch Management Addiction Sync Cables LinkedIn 360 Emails NarrowBand Windows Server 2008 Amazon Web Services Licensing Screen Mirroring Enterprise Content Management Virtual Reality Net Neutrality Hosted Computing Proactive Uninterrupted Power Supply Software Tips Remote Work WIndows 7 Electronic Medical Records Students Customers Password Manager Help Desk Television Transportation Thank You Troubleshooting Webinar Scalability Automobile Public Computer Benefits Congratulations IT solutions How to Techology Employer Employee Relationship CrashOverride Regulation Smart Technology Loyalty Books Experience Content Two Factor Authentication Emergency Music Remote Worker Worker Audiobook Assessment Battery Wiring Video Games Rootkit Politics

Sign up for our Newsletter!

  • Company Name *
  • First Name *
  • Last Name *