The Real Cost Of The Cloud


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The Real Cost Of The Cloud

  1. 1. 51%49% 56% 44% 59% 41% 63% 37% Cloud Data CenterTraditional Data Center THE REAL COST OF CLOUD As they evaluate cloud service providers, rather than just comparing sticker price for compute and storage resources, many IT departments have begun to consider a more complete picture of their cloud investment, including the human cost of managing and administering virtual resources around the globe. Enterprises are reaching out to cloud service providers for several reasons. Public IT Cloud Services, Total Enterprise Spending: More than half of workloads are now hosted on the cloud, and it’s expected to increase. CLOUDS ON THE HORIZON Cloud-driven enterprises are already reaping the benefits of adoption. MAKING THE CLOUD WORK With cloud technology’s efficiencies, companies are expanding cloud spend accordingly, as they select OpEx’s agility over CapEx’s constraints. BUDGET INCREASE HIDDEN COST CONCERNS WHAT YOU NEED 2013 2017 2014 2015 2016 2017 AS ENTERPRISE IT FOCUSES ON ENABLING BUSINESS UNITS, MANY COMPANIES ARE FINDING PUBLIC CLOUDS TO BE A TRANSFORMATIVE SOLUTION. $47.4 BILLION $107 BILLION A 2013 survey of IT management and primary decision makers in midsize and large-scale North American and European enterprises discovered just how widespread the budgeting* is. Budget spread for those enterprises:* Lack of resources to manage internal workloads Too much time spent responding to requests for servers Too much budget spent on physical servers and hardware Virtualization or application licenses up for renewal, alongside IT’s increasing preference for a pay-as-you-go modelDesire to reduce dependence on internal data centers Decreased deployment time Easier availability of latest updates Increased speed in unforeseen event response Lower risk with subscription-based cost model Improved information security $675,000 $8,234,438 Median enterprise cloud-computing budget 6% 25% 25% 19% 9% 16% <$100K $100K–$499.9K $500K–$999.9K $1M–$4.9M $5M–$9.9M >$10M *Includes both CapEx and OpEx 4.5% more spending on IT products and services in 2014 than 2013 for midmarket and large-sized companies in the United States and Europe SOURCES: Estimates show that at least 70% of IT budgets go to existing systems’ maintenance. Mean enterprise cloud-computing budget CIOs report that they focus on the top unexpected costs, both human and financial, of cloud initiatives. 49% 41% 32% 30% Delivering in-house training and development Hiring additional staff Investing in external training courses Providing e-learning Many cloud initiatives bring unexpected costs, both human and financial. By enabling your company to host business-critical workloads and development environments, a complete enterprise cloud platform can free up more time, money, and resources. Although all-in-one complete cloud platforms often cost more hourly, they can prove less expensive in the long run. CenturyLink Cloud’s prices already include IDP/IDS; 24/7 Support; Policy Management, Orchestration, Auditing, and Billing. Adopting the cloud as an integral element of your enterprise’s IT infrastructure takes planning. The cheaper option upfront will likely add up quickly in the long run. But a managed cloud solution can save your company money, resources, and time. Get CenturyLink Cloud. | | | | | | | $9,375.30 $11,026.86 $0 $3,000 $6,000 $9,000 $12,000 Compute: Web, App, DB Servers Networking: IP Address, Bandwidth, VLANS, Firewall Configuration Monitoring and Maintenance 24/7 Support Policy Management, Orchestration, Auditing, Billing IDP/IDS