July 12, 2018 // By David Frankenfield
Reduce Running Costs up to 60%?
Cloud services have emerged as an almost mythical cost cutting alternative to on-site data and application storage. What isn’t clear is how to mount an effective cloud system for your company, and where these saving will be. The nightmare scenario is mounting your services on the cloud and finding nominal returns, or unexpected variable costs that squanders any savings.
The good news is that cloud services can and will save you thousands, if not millions in operating costs if deployed correctly. Following best practices and allowing cloud experts to analyze your systems can reduce your running costs by up to 60%. Here are 5 essential tips for considering a cloud service for your company.
1. Don't Disqualify Personal Servers
In a recent SoftwareONE survey of IT and C-Level decision makers, there is a majority agreement that the best way to provide software services is a hybrid cloud/on-site approach. This is because some applications will be more cost effective to stay on private servers due to how it was built. It is also essential to keep critical information such as your ERP system localized.
While some servers will stay, mounting recommended datasets and applications on the cloud will allow you to decommission and downscale a large portion of your servers. Doing so will dramatically reduce the operating costs of these systems. If you have legacy systems that are no longer supported, migrating these systems alone means huge savings, a greater level of customization, and cost monitoring control.
This is an advantage for companies that have already invested in data management, as private servers will still need to be properly maintained. But it also means cloud experts are required to assess which servers and applications will need to be decommissioned, what stays on-premise, and what goes on the cloud.
2. Know how Cloud Services are Packaged
Cloud systems are priced monthly at rates that are calculated by several factors. The services are offered at different tiers of data packages depending on how the data is used. The tiers determine how the data is backed up, how much flexibility the system has, and can even determine which cloud facility stores the information.
Factors like varying software use – either underutilized software, obsolete stored data, unexpected increase of bandwidth, or popularity of services – are big contributors to the #1 pain point for cloud: unpredictable budget costs. By understanding which cloud storage tier your services and data need to be on, you can properly optimize necessary applications and keep you costs low.
3. It’s all in Review - Retire, Retain, Rehost, Re-platform
Even before mounting any information on the cloud, experts recommend a review of your applications and datasets. This assessment decides what software and data are ‘cloud ready’, what information should be retired, what is staying on-site, and which applications should to be reworked or optimized to migrate onto the cloud.
These changes will help reduce the total running costs of your services immensely. By optimizing and migrating essential applications, your cloud costs will not only be low, but predictable. Categorization of these applications on a frequency-of-use basis will make sure the cloud storage packages can keep up with the high-volume flexibility some services need. This also means less frequent, but essential data can be moved to a less intensive, low cost ‘cold storage’.
4. Use Tools to Monitor Your Progress
When you have a successfully deployed cloud system, use native or third-party data visualization to stay on top of your costs. PowerBI, GCP or other monitoring tools native in cloud systems like Azure and AWS give plenty of graphs to keep track of your data use. These visualization tools can give insight on how your applications operate and can open the door to further optimization of your systems.
Knowing the frequency of your services, such as quarterly or monthly applications that use high amounts of computing power can lead to advanced methods of control, such as allowing these applications to be deprovisioned when not in use. This method can also be paired with the cloud server slot system when updating systems to prevent any downtime.
5. Knowledge of Cloud Systems is Key
Knowledge of deprovisioning, caching, and other features available on cloud storage are key in gaining that extra 10-15% on cost. These essential elements to an excellent cloud deployment are also refined from having expert consultation on what your systems need while they are up and already running.
The same can be said about paring down your systems and deciding what applications and data stay and go—this consultation isn’t something that a few months of training will perceive.
Having a cloud expert to assess the usage of your data and applications will allow them to select the correct tier of data storage and functions that will be the most cost effective. The ability to analyze systems before they go on the cloud only comes from advanced knowledge of years of experience on a technology that is now the forefront of enterprise solutions.
Collaboration for the Best Cost – Trust the Experts
There is no shortcut to becoming an expert in cloud services. This is why 42% of executives are going to use third party cloud venders to provide expertise on mounting cloud systems. Magenic has some of the foremost thought leaders and experts in cloud solutions. Our employees have the knowledge to execute an effective cloud migration, and a keen understanding on what makes an excellent business partnership.
We know you need a business solution, and fast. Developing the most cost-effective system with speed is what Magenic is all about. Trust us to deliver the best people to create the best product for your company. Transition to the cloud at the speed of Fast Forward. Get there with Magenic.
This article was written with consultation by Stuart Williams, Cloud Practice Lead.