3 Hidden Costs of Going to the Cloud

Author by Craig Jahnke

It seems like everyone one is going to the Cloud these days.  It makes a lot of sense for a lot of reasons:

  • Shifts the costs of running your own data center and having to maintain hardware
  • More secure – best of the best are running and monitoring
  • Scalability – Use only the power you need when you need it
  • Automatically upgraded systems pushed out by the Cloud Providers
  • More features and options than you can do yourself

Those are just some of the reasons to go to the Cloud, but if your not careful going to the Cloud can be more expensive than you think for numerous reasons.  Here are 3 reasons that a lot companies don’t think about:

  1. Migration Costs – Getting to the Cloud costs time and money.  The planning process itself can take month to years depending on what you are trying to move.  If you are using the Cloud for app development, it is easier than if you are moving file shares or Collaboration environments like SharePoint to Office 365.  From planning comes running the migration jobs, monitoring, and remediation.  All take time and money.
  2. Mismanagement of Resources – Everything in the Cloud costs money: storage, processing power, data streaming, using services, etc.  In efficient code or leaving test environments running when not in use are slow drains on your system that quickly add up to big money.  Also failing to manage users who leave your organization is just trowing money away to user based subscriptions models like Salesforce or Office 365.
  3. Change Management – Businesses under estimate the cost of re-educating and re-training users on the new system.  It costs time and money to create training materials, train users, and get them up to speed quickly.  Loss of productivity can be experienced during the transition and should be planned for.

These are just a few of the way reasons companies don’t see as much ROI on their Cloud investments as they would like.  The good news is with proper planning, budgeting, and monitoring, these drains on ROI can be minimized and companies can make the most of transitioning to the Cloud