Cloud Computing Cost Savings: 3 Tips for the Bottom Line

In just a few years, cloud computing has gone from providing one-size-fits-all utilities and cheap compute to an engine for revolutionizing business and the clouding computing benefits the organization. Enterprises are no longer moving to the cloud to save a few bucks on hosting — they’re looking to cut costs and increase ROI across the organization. To meet their cloud computing cost savings goals, enterprises needs to move beyond bargain hunting tactics, to a strategic approach geared toward simplifying and unifying the IT landscape.

More Costs Less: The Cloud Computing Cost Savings Paradox

Enterprises often take a “less is more” approach to cloud computing cost savings. They’ll pick-up a cloud hosting package with very basic support, perhaps hire a 3rd party cloud integrator and rely on internal IT for everything else.

The problem is, very few organizations have the internal resources to properly handle IT. They’ll end up making their admin do double-duty providing cyber security services, or forcing developers to take time away from projects to put out fires. Between spiraling overtime costs, staff burnout and increased risk, it’s just not worth it.

Most organizations will increase cloud computing cost savings by partnering with a full-service MSP. Tasks like security and SAP Basis support don’t necessarily require a lot of hours, but they do require a lot of availability. By servicing multiple clients, a full-service MSP can provide more affordable security and administration, and offer around-the-clock monitoring and incident response that would be prohibitively expensive in-house.

Consolidating Vendors Leads to Cloud Computing Cost Savings

Companies often make the mistake of separating out hosting (often itself in multiple clouds), administration, security and compliance to get the lowest price for each. But when you outsource your cloud computing, cost savings can’t come at the expense of coherence.

This approach almost always erodes the benefits of cloud services, increasing administrative oversight and other costs. Communication hiccups slow down projects, and unanticipated complications necessitate calling in other external consultants, straining the budget. And when something starts to break, you might end up having to make half a dozen calls just to figure out whose responsibility it is, lowering productivity and increasing time to resolution.

The fact is, all this comparison shopping will rarely amount to real cost savings. If a single managed services provider can run your ERP landscape, they’ll take on costs like administration, integration and troubleshooting. They’ll also be able to work together as a team in a way multi-vendor groups can’t, leading to quicker resolutions and fewer problems. And if something does go wrong, you’ll have one throat to choke.

The Costs Benefits of Cloud Computing Depend on High-Touch MSPs

ERP landscapes are like an exotic sports car. They provide breathtaking performance, but can quickly break down without consistent tuning and maintenance. Without adequate ERP services, modest cloud computing cost savings can give way to expensive performance degradations and unplanned outages.

Unfortunately, many enterprise cloud providers still use reactive maintenance structured around escalation-based helplines. Problems aren’t spotted until they affect the end user, who may have to spend hours more on the phone to reach an expert. By the time you find someone who can solve the problem, the system has slowed to a crawl or gone offline entirely.

The greatest benefits of cloud services depend on choosing a provider who works as an extension of your team. Suffixtree proactively monitors and tunes your landscape, ensuring consistent performance and ultra-high availability, And if you do need help, you’ll have direct, 24/7/365 access to your own dedicated team, who know your landscape inside and out.