CIO: Cloud computing starts delivering tangible benefits to businesses

Source: Internet
Author: User
Keywords Cloud computing cost consolidation cloud services

According to some enterprise IT managers who have deployed cloud services or are considering deploying cloud services, although these unforeseen costs do not necessarily hinder the company from acquiring the true business value of the cloud computing initiative, it does affect the overall cost-benefit analysis of cloud services.

Mobile and data storage

Businesses will need to spend tens of thousands of of billions of dollars a year on migrating large amounts of data to public cloud services and storing data in public cloud services for a long time. Many companies may not be aware of the huge costs involved in the process.

"One data migration costs $ thousands of". Hernan Alvarez, head of it and operations at Whitepages, said Whitepages is headquartered in Seattle, which provides online contact information for more than 200 million individual users and 15 million corporate users.

Most of the unexpected costs come from network bandwidth for migrating data cloud providers may charge upload and download fees and other related costs, including internal human capital. People may think that using cloud computing has no labor costs, but when you need to deal with large amounts of work, managing a large number of clouds can be quite complex, like managing a large number of servers. "Alvarez said. Another big cost is the long-term storage of data in the cloud. "Imagine the growth rate of your business data, and the cost of data may be higher over the next three years." "Alvarez said. "As long as you store data in the cloud, you have to pay for it every month."

If you do not fully understand the cloud model, there are many unexpected costs to using cloud computing. "he said. "But if you take a closer look at CPU, capacity, and storage requirements and related charts, over time you can have a good understanding of the process costs and, if you understand it, make your business more cost effective." "

White Pages explores the use of cloud services for data backup, but after an extensive assessment of eight vendors, the company considered it too expensive, costing three to four times times the cost of data backup within the enterprise, Alvarez said. So the company decided to store the data for a long time in the private cloud within the enterprise.

However, in general, an enterprise uses a public cloud service to eliminate the deployment and maintenance of related applications within the enterprise. The company has been using public cloud services for more than two years and now uses 11 different cloud-based application services, including Salesforce.com, Success MX, ADP, WebEx, and Yammer cloud service providers. This helped them to save a lot of unexpected costs,Alvarez said.

Consolidate applications from multiple vendors

the Pacific (601099, Strand) Construction Products company, located in California State, Rancho Cordoba, a building product provider, wants to deploy cloud computing and evaluate several cloud service providers. But the company still restricts its use of cloud services, company chief information Officer Mikeo "Dell said." One of the reasons for

is the difficulty of consolidating application software from different cloud service vendors, which, in fact, will drive up the cost of cloud computing for the company if it is consolidated on its own.

For example, the company uses Microsoft's Exchange e-mail system and Cisco's unified communications system for voice mail, and wants to use all two of its suppliers ' applications to cloud services. "At least our last attempt to integrate the two apps into cloud services failed," he said. "O" Dell said.

cannot be consolidated, and users cannot take advantage of the features they now employ, such as automatically deleting voicemail messages on their phones when they receive information via e-mail.

The same consolidation challenges exist in other applications, and are more complex, such as ERP systems, O Dell said.

for the sap side, if we're going to adopt cloud services, we're going to give up the functionality of SAP, or spend more money on consolidation. "O" Dell said. "Perhaps this is just an immature technology, but the integration has its hidden costs." If you do not realize this clearly, the final economic benefits will not make you happy. The

(Responsible editor: The good of the Legacy)

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