The growing complexity of the cloud is causing a sea change in the economics of computing

Over the past year and a half, IT departments have played a critical role in enabling companies to change their operating models and enable employees to work remotely.

The responsibility to enable their businesses to navigate this transition – and prepare for an uncertain future – has given IT departments considerable strategic importance in companies. Historically a background function, IT has become a critical driver of day-to-day operations and a major determinant of how business will be conducted in the future.

At the start of the pandemic, IT teams were primarily focused on speed, but things have changed. Adoption of the public cloud has been seen by many enterprises as an effective solution to rapidly scaling capacity. But as temporary solutions become the norm, IT teams now find themselves faced with unexpected operational costs, leaving businesses with a dilemma: how can they reap the benefits of the cloud while keeping complexity and costs from escalating? sharply ?

True Cloud Costs

The value proposition of the public cloud has always been attractive: maximum flexibility, immediate availability and ease of use. While ideal in some cases, many companies realize that the public cloud isn’t always the answer.

According Andreessen Horowitz, public cloud usage has already generated hundreds of billions of dollars in IT spending and continues to grow at a pace that is difficult to sustain. With repatriation from the public cloud to on-premises environments yielding between one-third and one-half the cost for equivalent workloads, there is growing expectation that public clouds will either have to give up margin or lose some workloads in favor of on-premises data. centers. Industry-wide, market caps are weighed down by hundreds of billions of dollars in cloud costs and, if extended to the broader universe of enterprise software and consumer internet companies, this figure is probably over $500 billion.

Revisiting cloud strategy

Although the public cloud has many advantages, more and more IT managers are realizing that it is not the ultimate solution. Most organizations are looking for the agility of public cloud along with the flexibility to choose the right cloud, whether private or public, for each workload, while optimizing costs along the way.

With this in mind, how do CIOs sustain their cloud strategy? Here is the questions they need to ask themselves:

Should we keep or remove legacy workloads?

Some workloads are easy to move to public cloud substrates, while others are not. Application availability requirements, performance requirements, data governance, or sovereignty regulations often place strict limits on what can and cannot be moved to public clouds. In these cases, companies should invest in on-premises technologies that provide the benefits of a cloud operating model while maintaining full control of the infrastructure supporting these applications.

Do we have the required cloud skills?

Rather than join the arms race for IT talent and lose to the tech giants, some companies are simplifying their on-premises architectures to reduce the need for additional cloud specialists.. Leveraging solutions that get the most out of existing IT teams allows businesses to maximize the resources they have today while preparing for the future.

How do we select the best cloud platform?

In addition to maximizing existing skill sets, using a cloud platform that can bridge on-premises and public cloud environments provides the flexibility to choose the right cloud for each workload. Workload portability is another important consideration, as needs can change as the business evolves. Additionally, a cloud platform with built-in strong security and strong automation capabilities provides greater efficiency by reducing management. Additionally, a platform that standardizes how data is stored across different clouds will address many common challenges related to data protection, governance, and visibility.

What is the total cost of ownership?

The self-service nature of public cloud services requires organizations to implement cost governance and oversight strategies. Therefore, having clear visibility into the ongoing cost of each cloud is essential to avoid unnecessary spending. The University of California San Diegofor example, saved thousands of dollars per month after discovering workloads that no longer needed to be run.

Will moving to the cloud increase your business agility?

Many companies are looking to take advantage of the elasticity, scale, and agility of the public cloud and its services. However, refactoring their existing applications to make them cloud-ready can often be time-consuming and negate the agility advantage. A cloud platform that allows simple migrations or moves existing applications without any modification, makes it simpler, faster and more profitable. Additionally, solutions that provide blueprints to deploy applications consistently across any cloud can be used to manage dynamic environments without unnecessary overhead.

Hybrid multicloud is the way forward

In light of this new dynamic working environment, IT services have acquired strategic importance in the company, and companies are reinventing their budgets and the architectures they manage. As enterprises continue to deploy cloud infrastructure, they are increasingly turning to hybrid multicloud, a computing environment that provides unified infrastructure operations and management across private and public clouds, to leverage the benefits of public clouds. and private.

To modernize operations and achieve new levels of efficiency, a business can take several paths when adopting cloud technologies and cloud-centric operating models. Enterprises realize significant cost savings with platforms capable of delivering storage, compute, security, infrastructure management and monitoring through a virtualized architecture. Ultimately, the cloud is not a destination but an operating model to monitor, manage, and drive data scale, cost, security, and efficiency, regardless of where applications are executed.

Thomas Cornely is senior vice president of product management at Nutanix Inc. He wrote this article for SiliconANGLE.

Image: Bethanie Drouin/Pixabay

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