The Economic Structure of the Cloud and What You Need to Know

More companies are latching on to the idea of using the cloud for their business needs. 70% of companies are in the process of developing their own strategy for the cloud. Companies who have already bought into the cloud, they plan to increase their spending over the next year or so. This statistic is from a study done almost 2 years. It is now 2017 and the numbers continue to rise.

IT solutions

In spite of all of this progress, there is still a great deal about the cloud some companies do not know. It is not for lack of trying. The simple fact lies in the access to the information. Some companies do not have the information made readily available to them, especially when it comes to economics. To ensure you are handling the cloud effectively, visit this VeloCloud SD-WAN solutions provider website. Here are five key economic facts that you need to ensure ultimate optimization.

1) Low cost for the virtual machines is not what makes everything so cost-effective. What makes it work is the workload consumption. You are only saving money when you are not using something. Do not buy a new server to accommodate and short increase in production or sales. This is not going to save you money at all. Venturing into a new are without having prior knowledge of the success rate, it is only going to cost you more money. Cut the costs of hardware and servers not being used. You have to think long term with IT and the cloud.

2) Your support costs from the inside are not going to drop to zero. Some like to outsource because they assume it saves them money. It does not. You are still responsible for what happens on the inside. You may be cutting down on some jobs inside, but your responsibilities are heightened. Do not believe for one second you are saving money by outsourcing or cutting internal jobs. The cloud will help save you money on many things, but this is not one of them.

3) Public-used clouds do not work like something off a value meal. We are trained to believe that buying bigger will result in a cheaper cost. This is not true. Buy smaller units and you will save money.

4) The real ROI is achieved by empowerment and productivity. Developing both of these will increase your ROI. Investing in quality cloud management will help. The main focus should be in the customer-focused cloud expectations. People want speed and agility now. Increasing your knowledge of these expectations are the key to maximizing your economical standpoint.

5) Be aware of any and all hidden costs. These costs are out there. Some if these costs are hidden better than others. Knowing where these costs lie is part of the goal. Reading between the lines is the other goal. Look at what the cloud is trying to tell you. Sometimes it is not so obvious. The inability to read between the lines is what is costing some companies some big money. Learn to decipher what a third party is saying. This will save you money too.