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Is The Cloud As Cheap As We Think?

Description- One question that arises in many of our mind is that- is cloud hosting really cheaper? Well to know the answer read on the article.

Most of the companies these days are trying to figure out the answer to one important question: is cloud really cheaper? In an effort to reach the best possible result, they have been actively trying to evaluate the various public clouds that are available.

The main type of service that they have been using is IaaS or Infrastructure as a Service as it has many advantages like easy access and also promises huge cost savings. But how far is the cost savings guaranteed will depend on various factors. Most of the companies that have gone forth with using cloud services have faced disappointing results after spending a lot of money as upfront cost in a public cloud when they could have got their own private cloud.cloud-1

There are some companies like Amazon Web Services, VMware, Google Compute and Microsoft Azure which have been obtaining effective cost savings but the important thing to remember is knowing when to use public cloud and private cloud. There is a tipping point for each company when it comes to choosing between the two options but that point is different for each company. It is important to discover this point before committing to a public cloud service and spending lots of money on it.

When is cloud really cheaper?3

The first thing to do is consider an enterprise-level private cloud features and the different public clouds available. Your cost savings when using private clouds could be more. Many analysis between private clouds and AWS has proved that the private clouds are architected correctly and also running efficiently. It has been provisioned in the right size for the specific customer workloads and the various application needs. When the cost for running such a private cloud when compared to a public cloud with the same usage and applications was considered, the cost incurred by private cloud was lower. And the added benefit of advanced monitoring features, effective management of the storage capabilities and computing resources along with data protection and restore functions that are built in makes the private cloud a better option. Some analysis even shows that the cost incurred by a private cloud well-known for efficiency was sometimes about 50% lesser than what public clouds cost.

Some of the best private cloud IaaS has features like supporting of large volumes of instances in operations that are virtual, running of applications that are of high transaction volumes, supporting a wide variety of applications, management of factors like database systems, websites, email, POS systems and SharePoint environments and also the environments that require higher features like QoS, security, data protection and compliance.

Public clouds has features like supporting lesser anticipated number of instances in operations that are virtual, unpredictable or bursty workloads and supporting workloads that require only low transaction volumes.

When a company decides to go for a public cloud, then it is important to look out for the unexpected costs. The services as such are not trying to mislead the customers by charging them extra for some services. But the companies that are new to public cloud IaaS will be affected by many hidden charges that are relatively high. The companies will have to look out for extra charges that are incurred for premium services like faster tier of computing or storage, higher availability etc. They should also be aware of other features like extra fees for REST-based transactions if lot of them are being used, penalties for breaking the contract as it can be more expensive and the hidden charges that will come along with transferring the data in and out of the cloud as the public clouds sometimes charges extra for large volumes of data that is moved. The companies should also be aware of the reversed and on-demand pricing as the former will cost significantly lesser for per GB but it also requires the huge amount as up-front cost and a long term contract. If any changes are to be made then extra cost will be incurred. If the reserved allocations are expanded, then the organization will have to spend more management time for managing the capacity allocations.

The companies should also be clear about some of the untrue facts that are associated with clouds like how the cloud could be a great fit for any type of company and that data is not very secure. Public clouds may be suited for some activities and private for other. Dedicated hosting can be used for legacy application so the important thing to remember is getting the right overall solution that can sometimes be achieved by combining two or three of the available options.

It is not always cheaper to run the servers on the cloud but in most cases it can be cost efficient. If the company requires the servers to run all throughout the year 24/7, then it is better to obtain the same computing power using a dedicated server as it will be much cheaper. Cloud option will be best suited for variable demands and the different workloads in which some has higher demands and some lower. The cloud will enable companies to switch the servers off when they are facing low demand periods so that the cost for idle infrastructure can be cut down. This is the best way to match the cost pattern with the revenue and demand pattern so that the cost efficiency could be improved. Other than this switching to a model that is based on operational expenditure rather than capital expenditure is better through which the desired outcomes can be obtained for many businesses.4

So basically majority of the companies decide to work with a hybrid cloud which is a model that is based on taking the best options from both public and private cloud service and tailoring it to fit the needs. Proper assessment of the organization should be done to compare the numbers and discover the best tipping points between the different cloud options so that it can be used to choose the right type of cloud services. By doing this maximum cost saving can be achieved and the cloud can be put to good use.

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