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Competition. Business concept illustrationResearch from VMTurbo has highlighted 57% of organizations have no multi-cloud strategy at all, where as 35% do not have a private cloud strategy and 28% lack one for public cloud.

Although hybrid cloud is considered one of the growing trends within the industry, the research suggests the noise behind multi-cloud strategies is coming from either a small number of customers, or from vendor organizations themselves. Of those who would be considered in the ‘Functional Multi-cloud Owner’ group, which only represented 10.4% of the respondents, almost half were using a two-cloud model, and just over a quarter were using a three-cloud model. The multi-cloud strategy was favoured by larger organizations in general.

“A lack of cloud strategy doesn’t mean an organization has studied and rejected the idea of the cloud; it means it has given adoption little or no thought at all,” said Charles Crouchman, CTO of VMTurbo. “As organizations make the journey from on-premise IT, to public and private clouds, and finally to multi- and hybrid clouds, it’s essential that they address this.

“Having a cloud strategy means understanding the precise costs and challenges that the cloud will introduce, knowing how to make the cloud approach work for you, and choosing technologies that will supplement cloud adoption. For instance, by automating workload allocation so that services are always provided with the best performance for the best cost. Without a strategy, organizations will be condemning themselves to higher-than-expected costs, and a cloud that never performs to its full potential.”

The survey also demonstrated the total cost of ownership is not fully understood within the community itself, less so within smaller organizations. SME’s planning to build private cloud environments estimated their budget to be in the region of $150,000 (average of all respondents), whereas the total bill for those who have already completed such projects averaged at $898,508.

The stat backs up thoughts of a number of organizations who believe there should be more of a business case behind the transition to the cloud than simply reducing CAPEX and OPEX. Last month, BCN spoke to Gwil Davies, Director & Cloud Lead in the EMEA IT Infrastructure Centre of Excellence at Deloitte, to understand the economics behind cloud computing. Davies believes a successful journey to the cloud is not just focused on reducing CAPEX and OPEX throughout the organization, but identifies where value can be achieved through a cloud-enabled business.

“I think it’s more important for organizations get a real understanding of how to use the cloud and perhaps not automatically assume that moving all of their current IT into cloud is going to be the cheaper solution.” said Davies.

The business case for the cloud is almost entirely dependent on the long-term ambitions of the business itself, though the survey does imply there is a need to further educate some corners of the IT industry on the benefits and perceived cost of private cloud. Cloud computing as a concept could be perceived to have penetrated the mainstream market, though the benefits may be less so.

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