FierceCIOFierceCIOTechWatchFierceMobileITFierceContentManagementFierceGovernmentIT   FierceVoIPFierceHealthITFierceFinanceIT

Hidden costs of cloud computing

Cloud computing services have become all the rage for small companies and big ones. It can save money and it's efficient, supporters say. But there are plenty of warning signs for managers looking for a better way. There are hidden costs that could affect your bottom line.

While the sales pitch for cloud service sounds like a deal--$100 per user, per year sounds pretty good, there are costs associated with the transition, the architecture and the operations, according to an article from CIO.com.

Experts recommend that senior leadership explore a number of questions relating to the cloud to uncover the hidden costs before signing onto a contract for the service.

Here are a few questions that managers should be asking:

  • What are the viable paths to move (or replace) legacy applications into the cloud?
  • What architectural changes are required to integrate cloud and non-cloud applications?
  • How should we change our technology and operations processes to take advantage of different procurement, provisioning and management models?
  • How will a private cloud--built for the sole use of one enterprise--give me more flexibility than current hosting or public cloud models? What are the cost trade-offs?

The true costs of this business system are essential to know before an IT manager rushes in to sign up for the cloud. As the article advises: "Remember: It's deceptively easy to get burned on a cloudy day if you're not protected."

For more on hidden cloud costs:
- check out this CIO.com article

Related Articles:
Does cloud computing need malpractice protection?
Cloud computing: Boon or bane?

SHARE WITH:
Email Twitter Facebook LinkedIn StumbleUpon
Get Your FREE FierceCIO Email Newsletter:
Comments (1) | Post a comment

Comments

Thanks for this post. The compelling business case for the cloud is realized by many IT professionals, but determining the return on investment of a technology such as cloud computing can prove to be difficult. Have you encountered the ITX (IT Cloud Transformation) ROI Calculator? It's a free online service which will enable you to quickly estimate how much you stand to save in the cloud, versus on-premise. The program takes into account software applications, servers, data centers and back office functions and determines which would be cheaper with Web-based software applications and how long it would take to achieve ROI. For more info see http://bit.ly/bFsy7X

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.