Types Of Hidden Costs For Public Cloud

Public clouds become revolutionary innovation in IT which is not just for small and medium-sized businesses. At the moment, most companies are experimenting with public clouds as a resource for development and testing or for production applications with low requirements for security, protection of personal data and service levels. It is believed that large companies of public clouds may be of interest only in a specific niche, given their large investments in legacy systems and the critical role of such systems for their business. Nevertheless, a number of these companies see great potential in public clouds. They feel an urgent need to make a choice between pro-active work with the public and the clouds behind the competition.

We talked with many of the companies to begin with development of public cloud services providers in India. Naturally, the applications that these companies would like to move to public clouds being studied to determine their cost-effectiveness in this model. We propose a generalization read reviews over the ten kinds of hidden costs in the public cloud. We have split these costs into four broad categories:

  • one-time cost of migration
  • limitations of the model of billing
  • residual costs of management
  • risk premium

Single migration costs

Its costs are associated with moving existing applications to the traditional, physical infrastructure in the public cloud, including costs to modify the application and transfer of server systems, and associated with writing off the cost of equipment depreciation.

In this category there are two types of potential costs, for which you need to watch.

Rewriting applications. In a typical company, the most used applications are not yet ready for transfer to the cloud. Certain applications that already run on virtual machines or developed in accordance with the standards of the cloud platform, are well-tolerated. But most require significant processing or rewriting code to ensure compatibility. This is especially true for legacy applications. Organizations need to assess the economic feasibility of the transfer of such applications. It may be cheaper to keep them in original form or to completely abandon them in favor of new ones.

Promoting standards of cloud platform and justification of the need to update technology invariably are difficult for application developers. This should be taken into account when considering the use of public clouds.

Write-offs for depreciation. Companies that choose to update the application or infrastructure to accelerate the transition to the use of public cloud, could face the impossibility of further depreciation of existing equipment for depreciation. This explains why many companies intend to begin the study of clouds, when the time comes to change equipment.

Limitations of the billing model

The current model of billing in relation to a public cloud computing has three features that may not correspond to the nature of your enterprise applications.

Award for flexibility. One of the most lauded features of public cloud is the payment of actual consumption, which allows companies to handle peak loads. Because prices are set properly, it could mean an additional fee for applications that are constantly in the public cloud and are subject to bouts of activity. What is important is the right choice with regard to each application. Applications that use smooth or predictable demand, would be economically efficient in the use of models for providing computing power on demand.

The fee for crossing the cloud. The fee for incoming and outgoing data – an important factor that we must always remember, especially in case of heavily used applications. Anxiety also causes an additional delay that occurs in the cloud of server hosting when requests for the transfer of large amounts of data.

Storage costs. Virtual multiplayer server architecture complexity and costly storage, causing the need for optimization through storage virtualization, storage, fast devices only frequently used data and deduplication. Most companies are just beginning to familiarize themselves with the appropriate tools.
Residual management costs

It is important to remember that you will not be able to abandon old service, which will have to continue to provide within the company, even after the transfer of applications in a public cloud.

Attention is drawn to four areas of management

Security, in particular update the OS and antivirus management. Of course, there are the usual and enhanced security measures to be taken when working with the public cloud. There are basic costs associated with software licenses, upgrades and maintenance when installing patches and antivirus software. These costs are present regardless of whether the company chooses a public or private cloud hosting in India or traditional uses its own physical infrastructure.

Back up

Most public clouds do not provide backup. This is one of the many reasons why businesses often do not even consider the possibility of using public clouds. A significant part of the companies need to continue to maintain all the internal infrastructure for backup and data recovery. This is another cost item that increases the cost of public services, the clouds over the face value.

The redistribution of the load and automatic scaling. These capabilities are required to handle requests to the system, the optimal use of resources and prevent overloads. They require specialized equipment and costly new software. These costs are often passed on to corporate customers, but not to the providers of cloud services.

Services for integration. They are necessary to ensure full compatibility with the client installed and deployed in the cloud systems. Organizations that tolerate application in public clouds must be purchased for this expensive software.

Reward for risk

Use of the public cloud enterprises primarily should always be prepared for worst-case scenario. You need to prepare for the costs of transfer services at its own site in case your provider of public cloud collapses, or you just do not want more use of its services. It is important to determine the extent of the costs of such migration.

Here we should pay attention to the plan out the clouds. Requires thought-out plan migration from public clouds back to their own equipment (which is highly unlikely) or in another cloud (more realistically). Drawing up such a plan requires additional time and effort, as well as extraordinary financing. The companies that have already endured the application of a private cloud in the public or had a case to learn the standards of tolerance, migration costs will be small. But most companies do not have such experience. Therefore, for the transition to a public cloud, they should provide funds for the organization of deliberate withdrawal.


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