There is no denying the versatility that technology like the cloud can provide, but it often comes with hidden costs that might affect its cost-to-benefit ratio for your organization. Here are some of these hidden costs, as well as what you can do to minimize the impact they have on your bottom line.
Some of these different expenses may impact the fees associated with the cloud provider, while others might affect your ability to implement a cloud and host it yourself. Let’s take a look at these costs to see what your options are.
It helps to have a baseline understanding of how a provider sets its fees. They are based on the three primary costs of a cloud service provider:
While this might seem like a lot to take in, it’s important to consider what your own on-premises infrastructure might cost. There are the capital costs to acquire the required equipment and licenses, as well as the operational costs of powering and maintaining the infrastructure, and that’s not even mentioning the IT staff responsible for managing it. Additionally, downtime could create indirect costs for your business.
A solid frame of reference for the costs of on-premise computing is to multiply the cost of the actual upgrade by three, as every dollar invested will come with an extra two dollars of management and maintenance.
Compared to the costs of managing your own technology, working with a cloud provider is actually beneficial in several ways.
The cloud is great for several reasons, but you also need to consider the trade-offs of using it. For example, some of the cloud’s costs are not financial. You might sacrifice a lot of time while migrating between cloud providers, and if you need your data while you are in the process of migrating it, you might be in trouble.
Thankfully, you can make it less difficult and complicated by working with professionals like those at Kornerstone Technology Inc.. We are happy to help you with the process of data migration, cloud implementation, or whatever else you happen to need to make a smooth transition to the cloud. To learn more about what we can do for your business, reach out to us at 818-206-6383.