How to Manage Your Costs When Transitioning to Cloud Computing

What is Cloud Computing by Sagacent Technologies

As time goes by, more and more businesses are beginning to see the benefits of cloud computing. It is an attractive solution that provides many business benefits. However, moving to the cloud can present many challenges – from logistical issues to cost. The cost of migrating to the cloud can make it prohibitive for some companies. It often requires a large upfront investment, but it can often result in long-term savings that outweigh the drawbacks.

With that in mind, it still doesn’t make it easier to come up with a large investment. However, there are several strategies to help manage costs during the migration and ensure you stay within your budget. These include:

  • Visualize current and future states. Cloud migration costs a lot less if you can get it right from the outset of your project. But to do this, you must visualize both the current and future needs in your cloud architecture. If you have a good idea of what you need now and what you may need in the future, you can identify gaps in your infrastructure and streamline the migration process to cloud computing.
  • Update architecture diagrams. A cloud architecture diagram can help you visualize the infrastructure and unde3rstand the relationship between all infrastructure components. When you have updated diagrams, it’s easier to make decisions based on what your network looks like right now rather than how it looked in the past.
  • Purchase only the services you need. One of the biggest ways cloud computing can save money is by its ability to scale in a way that delivers what you need – not more and not less. This is called ‘rightsizing.’ If you are purchasing services you don’t need, you won’t be able to maximize the cost savings potential of cloud computing, and it will take longer to see an ROI.
  • Leverage automation. Automation offered by cloud computing applications is another feature that can enhance your cost savings. For instance, you can use automated scheduling to automatically switch resources during different times of the day to reduce costs, which can reduce your costs by up to 65%.
  • Monitor cloud costs. Just as you keep an eye on your overall budget, you will want to closely track your cloud migration costs to ensure it stays on budget. You can also create alerts to get a notification if you meet certain financial conditions, such as reaching a monthly spending limit.
  • Use reserved instances for stable and predictable workloads. Many cloud providers offer the potential to reserve capacity upfront at lower prices. For instance, if you reserve capacity for one year with an average discount, you can save up to 75% of the on-demand charges for the same capacity.
  • Work with a managed IT service provider. Another great way to save money during cloud migration is by partnering with an IT service provider who has experience in this area. In many cases, working with a service provider can deliver more cost savings than trying to manage your cloud services in-house.

Migrating to the cloud can be intimidating. It’s a tremendous move for your business, but if you can control costs and stay within your budget, it won’t be long before you see cost savings due to the many benefits cloud computing can provide. Some of the benefits can make a large impact on your bottom line over the long-term, such as:

  • Energy savings: When you move to the cloud, you only pay for what you need, which means you aren’t sinking a ton of money into infrastructure that is only used part of the time or rarely. This efficiency in hardware allocation often means you can save money over time.
  • Scalability: Cloud computing also lets you pay only for what you need and use, which means you can grow at your own rate without additional large investments in infrastructure.
  • Lower capital costs: Cloud computing eliminates the investment required in things like large data centers, which means you can use those savings toward other business priorities.
  • Less downtime: While security and reliability were questioned early in cloud computing, it has evolved to the point where it is more reliable than in-house infrastructure in many instances. And with increased reliability comes less unplanned downtime, which also saves money.
  • Increased efficiency: Cloud computing can streamline many of your operations, allowing team members to work more efficiently.

Cloud migration makes financial sense for most businesses, especially when it is accomplished within your initial budget. To learn more about cloud computing, contact Sagacent Technologies today!