Posts Tagged ‘cost-savings’

 

Capitalizing on cloud cost-saving opportunities

Friday, April 12th, 2013 by

In most cases, cloud computing can replace traditional data center infrastructure solutions for less money, making them an affordable alternative for maintaining and potentially improving operations in today’s unpredictable economy. However, these financial benefits are only achieved when decision-makers take the time to plan the deployments carefully and understand the fundamentals of how their organizations carry out mission-critical tasks.

Capitalizing on cloud cost-saving opportunities

Capitalizing on cloud cost-saving opportunities

A recent InformationWeek report highlighted how many cloud implementations are underutilized, largely because executives impulsively migrate to the hosted environments without first identifying best practices for optimizing the services. This means that many of the cloud’s potential financial opportunities are discarded, making the technology less efficient than it can be.

Several technology evangelists told InformationWeek that cloud vendors love charging less than traditional service providers, as doing so gives them the opportunity to reach new customers and introduce significant improvements to internal operations. When executives over‚Äč-provision the hosted services, however, organizations are forced to pay for unused resources, diminishing some of the cost-saving opportunities. Fortunately, there are ways to circumvent these challenges.

Ensuring the cloud delivers financial benefits
Understanding and monitoring usage is among the best ways to ensure a cloud infrastructure is able to capitalize on all of the financial perks the technology is widely known for, InformationWeek stated. Decision-makers should not simply pick a random budget and assume each month is the same. Instead, IT directors should observe how the environments are used and whether certain months or time periods require individuals to consume more resources. If a company is using fewer tools than initially expected, executives need to understand why.

In addition to consolidating all cloud services through a single provider, which may qualify for some price breaks, organizations should think about how they can use the cloud to optimize servers, according to the news source. Many cloud vendors today offer automated scaling services, which enable firms to use more infrastructure tools when they are needed and deactivate those same assets when they are not necessary. This means many solutions will no longer be running 24-hours a day, allowing businesses to reduce maintenance expenses.

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Cloud Worries Dissolving with Service Provider Assistance

Monday, December 31st, 2012 by

Today’s cloud computing world is rapidly maturing, especially as more users migrate mission-critical resources to the hosted environment. As the cloud continues to evolve, many decision-makers will become increasingly confident in the technology’s ability to keep sensitive assets protected, enabling vendors to watch their services reach full-scale adoption.

A recent study by KPMG International highlighted this ongoing phenomenon, noting that cloud computing revenue will double in size during the next two years, largely because companies are moving more mission-critical, data-rich applications to hosted environments.

Cloud worries dissolving with service provider assistance

Cloud worries dissolving with service provider assistance

In the past, decision-makers were somewhat intimidated by the cloud. In today’s world, executives are less worried about falsified security concerns and more interested in saving money, as roughly 60 percent of service providers said cost savings was the primary driver behind the adoption of their offerings, KPMG reported.

“While providers are seeing the challenges of a maturing, yet still relatively young, market, we are at a pivotal point in the evolution of the cloud ecosystem as users become more comfortable with a variety of cloud applications,” said Gary Matuszak, an executive at KPMG’s technology, media and telecommunications practice. “Leading cloud providers know they must evolve to provide a new level of scale, capacity and capability.”

Addressing challenges in the industry
The primary difficulty most service providers are having is supplying evidence to users about real cost-saving opportunities, as only 39 percent of vendors believe cloud users have a realistic idea of the cost-reducing capability of the cloud, KPMG noted.

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