14 Mar
The way we work changed drastically in the last two years. The global economic uncertainty accompanying this change has caused companies to be more cautious in their IT investments. However, cloud computing, far from being affected by austerity policies, experienced increases in investment on the contrary. Hybrid working and companies’ need to support remote workers play a significant role in the increasing interest in cloud computing.
Nine percent of companies in Turkey use public, 35 percent use private, and 55 percent use hybrid clouds.
– IDC, 2021
The cost advantages
Although cloud computing is one of the most prioritized investments by companies, it is one of the least understood technologies for its economic benefit and cost analysis. Given the enticing advantages of the cloud and the risks that stand between companies and those gains, how cloud services are used is critical to optimizing costs and increasing the value generated from the cloud. Otherwise, you miss out on one of the cloud’s most significant benefits, the cost advantage.
Earlier, in our article titled Digital Innovation: Leverage the Cloud to Gain On, we covered how to calculate cloud ROI and shared a simple formula you can use.
Calculating the actual cost of the cloud
Cloud migration strategies shouldn’t increase costs and complexity but reduce them.
The long-term savings and efficiencies of the cloud will vary depending on each company’s needs, circumstances, and the cloud solution they plan to migrate. However, there are general indicators that every company can look at to determine the return on investment and total cost of ownership:
The capital cost of the existing data center or cloud infrastructure can be calculated by considering expenses such as equipment lifespan, spare parts, labor, software, and licensing. To learn the actual cost of an open, private, or hybrid cloud solution, you should get proposals from the providers first, but the critical point is to predict beyond the standard pricing. Cost items such as integration, security, licensing, and training that will arise later should also be considered.
Eventually, the costs of the transition process itself must be factored in. The cost items of moving IT operations to the cloud or switching to another cloud provider are labor, integration, and application testing.
A scenario that takes all these variables into account can help IT executives understand the actual cost of migrating to the cloud or another provider and present a compelling argument.
A new profession: Cloud Economist
New expertise has emerged with the increasing adoption of the cloud: The cloud economist. These professionals are experts in cloud models, expenses, and benefits, enabling companies to predict the costs and savings they will encounter when migrating to a new cloud solution. Netaş makes the cloud economy transparently and proposes the most suitable solutions for your needs, with the consultancy services and the VMware Cloud solutions it offers.
351% ROI in three years with cloud computing
Netaş manages digital transformation end-to-end with its technology products and localization solutions, implements the most suitable modernization models for the needs of its customers. The company offers VMware products and solutions worldwide with the expertise and consultancy of an experienced R&D team.
VMware Cloud solutions offered by Netaş stand out with their efficient use of resources, minimum unplanned downtime, and a great return on investment. VMWare Cloud solutions provide companies with seamless integration and operational convenience.
According to data from independent research company IDC, companies using VMware Cloud on open cloud achieve a 351% return on investment in just three years. Many factors lie behind this tremendous return on investment. According to the research firm, VMware Cloud enables companies to move to and from the public cloud 46 percent faster, face 57 percent lower migration costs, and 83 percent less unplanned outages.
Cloud cost control and optimization
The role of the cloud economy does not end with the completion of the migration. Managing the costs and ROI of the cloud transparently and consistently is one of the cornerstones of the cloud economy. VMware CloudHealth, presented with the expertise of Netaş and shown as the world’s number one cloud cost transparency software by IDC research company, provides organizations with advanced financial control and management capabilities for multicloud environments.
VMware CloudHealth makes it easier than ever for organizations to meet the cloud challenges they face with its operational, security, and compliance features as well as cloud economy capabilities. These capabilities also make CloudHealth the world’s number one multicloud FinOps platform. (ISG, 2021)
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