Thursday, September 7, 2017

Reducing Cloud Costs with Cloud and Business Management Services

Costs have been one of the major reasons organizations have switched from private clouds to public clouds. Startups embrace the public cloud because it eliminates the need to build and manage a private cloud on-site. This saves on initial startup costs that include IT hardware, IT software and IT staff. For a high tech startup comes other public cloud benefits. One is that the company does not have to concern itself with IT issues and can focus on product development and product marketing issues.

Well, that is at least true in theory until the monthly cloud bills come floating through the door. Many companies will just pay the bill when they are in start-up frenzy mode. The more cloud savvy will start looking around for ways to find out how to reduce cloud costs. 

What the latter will find out is  that cloud ignorance is increasing cloud bills. The truth about the cloud is that many companies over allocate cloud resources, such as cloud instances (processors) which may result in cloud billings that are 2 or 3 times  than they need to be. 

Newer companies may not even have one IT expert on staff. They may depend solely on the support services of the cloud vendor. This means that the company is in the dark about how to reduce cloud costs. Not only do they not  know how to optimize cloud infrastructures, but they also don't how to  streamline automated processes so that cloud costs and company inefficiencies are mitigated. . 

Forgetting about IT altogether is one way to go. However, one should also remember that IT, business process flows, and business automation are skills that a company should have a handle on. If they don't, they are not only subjecting themselves to unnecessarily high cloud bills, but are missing out on the benefits the high processing power that the cloud offers.  True cloud power translates to lower business operating costs and more effective marketing and sales operations. All of which, make a more expensive cloud bill pay for itself. 

Ideally, any company that uses the cloud, should know how to use it such that the cloud hardware and software is optimized for the lowest cost and the best performance (cloud management services). And they should know how to use the cloud so that businesses processes can be continually improved (cloud business process management services). Without the two, a company never will realize higher revenue growth, lower time to market and continued reductions in operating costs. Something that their cloud-savvy competitors are only to pleased to hear.  



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