The cloud should not be deemed an immediate fix for businesses that want to reduce their IT expenditures, according to a new report published by Saugatuck Technology. Instead, those businesses should be more focused on assessing workloads in advance to make the most out of their cloud investments.
The report, called "Understanding Cloud Infrastructure Costs: Navigating for Savings," was aimed to deliver a comprehensive framework for the common expectations associated with various cloud offerings and workloads. It claims that switching to the cloud may not necessarily always help an organisation save on IT spending.
The report claims that while evaluating cloud financials, most organisations usually tend to underestimate or overlook its "true costs at the enterprise workload level".
"On an optimized in-house infrastructure, costs for running a workload in a public cloud could actually be greater than the costs for running the workload in-house." it reads.
The report further states that the failure to account for and evaluate workloads while calculating cloud costs can eventually lead to overspending by raising the actual expenses of managing and deploying vital IT resources. In addition, such a situation may even result in a reduction in the efficiencies of IT departments and their resources.
Businesses operating smaller-sized workloads can effectively save anywhere between six per cent to 70 per cent by embracing public cloud services, whereas organisations with medium-sized workloads can reduce their expenses by 10 to 35 per cent by opting for hybrid clouds, the report claims. Companies with larger-sized workloads on the other hand, can reduce almost five per cent to 20 per cent expenses by using a private cloud, it added.