While cloud services help to make IT costs lower, like increased flexibility, many companies decided to move to the Cloud computing.
According to the IDG Enterprise survey, 71% of companies want to increase their costs on cloud computing in 2012 in order to save more costs.
But it dos not result in cost saving. The proper steps should be taken to move company’s applications to the Cloud effectively and to avoid spending more than has planned before.
We would like to give you some advices how to spend less money on cloud services:
Watch out for hidden costs.
Beyond the basic fixed fee the company managers important to be aware of the full costs of a cloud computing before agreeing to the Cloud contract with the cloud services vendor. For example, organizations should know if and what the cloud provider charges for:
Growth or decline of service’s levels;
Customization and configuration;
Termination of an agreement;
Data transfers, and
Support and maintenance.
Before making serious moves to the cloud services, businesses should also to understand an amount of the cost they may have to spend on internal upgrades.
Centrally manage cloud provisioning.
Businesses should better have a clear-cut cloud services process with a team or one person to manage it. The cause in purchasing and managing of the IT process, because IT employees are the ones who can clearly to purchase exactly what your company needs and to install software and equipment. It’s easier for IT to control spending, to perceive how much is being spend on tech-related elements. Using cloud computing, departments can provide services themselves, with no any input from IT.
Minimize – and plan for – outages.
The biggest concern most companies have about usage cloud computing is probably reliability. If IT services declines, even for a shot time, a company can loses a lot of money.
That’s why it is better to pay more attention to the reliability that you can expect from your cloud providers after signing up your contract. Organizations should understand that the Cloud agreement has penalties for the vendor in case of availability guarantees aren’t meant and redundancies are in place.
Negotiate better agreement terms.
Typically vendors are friendly while cloud services contracts. The University of London research found that companies become better at negotiating of a contract with cloud providers. According to the customers and cloud vendors interviews, many clients have been able to push for contract terms for decreasing their costs or avoiding some cloud services risks.
The most negotiated items:
Up-time guarantees and availability;
Protection against service changes without client acceptance;
Disposition of rights;
Remedies for issues such as security threats and down time;
Security and privacy protections, etc.
Right size of your cloud services.
Cloud services can help businesses to save money by spending only for needs. Instead on a lot of spending on upgrades companies should be aware how much company will use, they can pay for only used storage. Many analysts advice starting out small with a cloud service and grow as necessary rather than over-provisioning at the beginning.