If the company does not have a wise cost plan, when the monthly bill comes, it may face high expenses. Therefore, it is necessary to consider experts’ suggestions on how to manage hybrid cloud costs.
The hybrid cloud strategy is very attractive, but “free” is not part of it. More precisely, from a financial point of view, this attractiveness is usually related to the pay-per-use model, which enables companies to shift IT expenditures from the capital expenditure model (regardless of future usage, they can pre-purchase hardware and software And other services) to the operating expenditure model, in which companies pay for the resources they actually consume. For example, the operating expenditure model helps minimize the risk of purchasing large amounts of infrastructure that may only require resources intermittently.
However, changing from one spending method to another does not mean that companies will reduce spending. In fact, if you do not have a wise cost plan, you may face high monthly bills.
Red Hat technical expert Gordon Haff said, “One of the attractions of cloud computing (especially public cloud) is that if demand surges or enterprises need temporary resources for some experiments, additional resources can be quickly added, but the cost is also It’s easy to get out of control. This is especially true for complex multi-cloud or hybrid cloud environments.”
He pointed out that this does not necessarily have to happen. For example, many unexpected cloud computing bills are caused by not paying close attention to the cloud computing environment and usage. A typical example is that a developer or other IT professional starts a virtual machine on a cloud platform and then forgets to turn it off after finishing the work. This is similar to going out without turning off the lights, but the cost of waste is much higher.
Five misunderstandings about hybrid cloud costs and how to avoid them
Simple misunderstandings can also lead to unexpected expenses: “We don’t know” is usually someone’s explanation of unexpected bills. Here, some misunderstandings are resolved to help enterprises manage the cost of hybrid and multi-cloud.
(1) The bill can explain everything
Although the cloud computing bill obtained by the enterprise informs the amount owed, it does not explain the reason for the arrearage. In other words, companies need to be able to see and understand the overall situation of their expenditures.
Haff said: “The pricing of cloud computing providers is complex, and its costs need to be understood and monitored on a global scale.”
Srivastava said: “IT leaders need to take a comprehensive look at their cloud computing assets in order to effectively manage their cloud spending.”
Some companies may use narrow or isolated methods, and may say, “This is the cost we spent last month (or last year)”, but they want to be able to explain the overall situation of the expenditure.
Srivastava said: “By taking a holistic approach, business leaders can identify the main users of cloud computing resources and make necessary adjustments to optimize costs.”
(2) Cloud computing costs are always lower
From a technical point of view, a hybrid cloud architecture cannot automatically match workloads to the right environment; the same is true from a financial point of view.
Aerospike’s Chief Strategy Officer Lenley Hensarling said: “Many people think that everything in cloud computing is always cheap. This is not the case. Everything in cloud computing has become more flexible and elastic. This is a fact. But if companies There are stable workloads, and it’s usually much cheaper to run them in a hosted private cloud or on-premises data center.”
As Haff mentioned above, the cost of data transmission is a major example of potentially overlooked costs. Costs can be reduced through proper planning and design, but the cost of data export cannot be ignored. The costs associated with moving data out of a specific cloud computing environment are An important issue that needs attention.
Companies may also need to reconsider how to gradually measure costs and return on investment; too much focus on investment costs may cause companies to ignore the fact that over time, pay-as-you-go spending will catch up with spending in operating data centers.
Gokul Rajagopalan, product director of Vectra, said that the more important thing is that cloud computing costs are a blind spot for most people.
Companies need to understand the purpose of spending, not just because they can transfer workloads to a cloud platform and assume that everything will become cheaper. Similarly, measuring the return on investment of cloud computing is not just a strictly quantitative issue of capital expenditure and operating costs, especially if companies ignore secondary costs (such as routine maintenance or upgrades in their own data centers).
In addition, the reasons why companies run certain programs in specific environments (such as using newer technologies) are important. Performance, compliance, and security are all important factors. Companies use cost-benefit analysis instead of just cost analysis to hybrid cloud strategies.
(3) Know the cloud platform well
Many companies may encounter this situation: Cloud IQ may become obsolete because the cloud computing environment (and any given platform) will change regularly. This may be beneficial, if the company only uses on-premise solutions, it can access new features faster and more frequently. But if you do not pay attention, you may miss some new options or more effective or less costly methods.
Rajagopalan said, “Of course, unexpected expenditures are commonplace for businesses. But considering the speed of innovation of cloud computing providers, another common problem is outdated knowledge. Because every six months there will be a faster and cheaper In this way, companies must constantly re-evaluate their use of cloud platforms to see whether they should take advantage of new cloud computing services or functions. These optimizations can significantly improve performance or reduce costs that are easy to miss.”
(4) Not using the services of other cloud computing providers
Hybrid cloud or multi-cloud should not be the story of unlimited access to new cloud computing services, although this is a reality faced by some enterprises.
Haff said, “Most large enterprises use services from multiple cloud computing providers. There are good reasons for doing so, including redundancy, unique features, costs, data governance, acquisitions, etc. But don’t think about it. Increase complexity. This makes it harder to predict costs, and it may also increase costs.”
An obvious advantage of adopting cloud platforms and cloud services is: fast and flexible operation of key services that may not be realized or huge operational burdens, if not paying attention, it will lead to waste. Add cloud platforms or cloud services because they can solve problems or meet business needs.
(5) Pay only for the resources used
Cloud computing is usually based on this principle, and it is fundamentally correct. On the other hand, if it is just to prevent some additional capacity may be needed, it is usually not feasible or wise to make large-scale investments in data centers.
However, this principle can also mask one of the most common sources of overspending, especially in public clouds: In fact, companies pay for things they don’t use. Similarly, a typical example is a zombie instance that has not been closed, which means that billing is still ongoing.
Haff pointed out: “Developers can easily start the largest virtual machine without deleting data.”
It is a good principle for companies to only pay for the resources actually used. Some strategies need to be enforced to ensure that idle devices are turned off when workers leave the room, which is to release resources they no longer use.
Haff said: “Establish a default strategy and shut down services that are not actively used. Chargebacks are a common way to increase cost transparency and accountability.”