Public Cloud Costs Typically Double On-Prem
Improving the security, performance and reducing costs.
83% of CIO respondents are moving workloads back*
Drawbacks of the public cloud
- Hidden additional costs
- Latency / operational issues / performance at the edge
- Vendor lock-in / exit fees
- Lack of control & security
Considerations
1. Challenges to move back to major CAPEX expenditure
2. Unable to rebuild in-house IT teams to manage, update and support
Solutions
1. Move certain workloads back on prem
2. With Ingram Micro or Dell financial services (opex model)
3. Include ProSupport and ProDeployment for services inclusion
Security is becoming a real worry for businesses dependent on the public cloud. By default, the dominance of the big three hyperscalers makes them a prime target for hackers. Distributed Denial of Service (DDoS) attacks on these organizations are occurring almost continuously, creating huge security vulnerability.”
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“it is the hidden costs of the cloud that have caught so many companies by surprise”
“hyperscalers’ financial calculators look straightforward; but buried in the fine print is the information that every additional slice of service and support costs more. Storage cost models are unclear: the promised price per terabyte looks fantastic, until a company discovers it is being charged not only to store data but also delete it. Uploads are free but an organization is charged for every object downloaded.”
Add in the limitations on bandwidth, the additional charges for CPU or RAM, plus the fact that if the business is using VMWare, it will be paying again based on those same usage factors, and it is little wonder that the cost of the public cloud has far exceeded any CTO’s original expectations.
Instead of an open, public access model that is sought after by the large hyperscalers, an on-premise set-up takes the opposite approach: everything is locked down first, with access opened up only as needed using highly secure tunnels to safeguard the business.
Times are changing yet again. Sure, the public cloud has its place and is great for hosting a website or public-facing apps.
However, as organizations start to realize that their IT infrastructure deployments could be cheaper and more secure with an on-premise set-up, many organizations’ IT teams are starting to go “back to the future”.
Can I just extend my hardware support? Not exactly, consider the following:
- Security risks & less frequent patch updates
- Performance / operational inefficiencies
- Higher costs to refresh with IT inflation & only delaying capex
- Unforecasted & unexpected (rising) opex costs
- Asset depreciation = less residual/resale value
- Decreased service part availablity & at higher upgrade prices
Dell Technologies #cloud #technology
Account Manager at Dell EMC Technologies
7moGood one 👍
CTO | CIO | Creating value with strategic transformation, innovation for growth
8moIt's been interesting to see the shift over the last couple of years. There are huge benefits to using public Cloud infrastructure but it's very rare for one size to fit all and I am not surprised to see pragmatism coming into play.