The Cloud is Different

We often speak with clients about how their Cloud Computing initiatives are progressing. A common complaint we hear is “the Cloud is not as cost-efficient as we expected.”

Companies are routinely overspending their Cloud budget, and many see an overall increase in IT spend because of Cloud migration initiatives. The inevitable conclusion many companies reach is that they must slow down, or stop altogether, any further migration initiatives until Cloud spending is under control. While the negative experience clients are having with cloud economics is undeniable, the conclusions that they are drawing about “The Cloud” and the actions that they are taking as a result are regrettable.

At Wavestone, we are strong believers in the economic potential of the Cloud and point to 3 fundamental challenges that keep Cloud Programs from fully realizing this potential:

• From a financial standpoint, companies must become much more sophisticated in Cloud spend forecasting and managing cloud budgets
• From an architecture standpoint, Cloud solutions must be reconsidered (feel free to apply the most appropriate of the “7Rs”) to take full advantage of Cloud economics
• At an operational level, companies must be aggressive in changing the way they manage Cloud infrastructure and applications for maximum efficiency

A while back, we were working with a colleague who had a sticker on his laptop that claimed, “the Cloud is just somebody else’s computer.” This sounded very clever at the time. However, in reflecting on our clients’ experiences with the Cloud since then, we realized that beliefs like that are leading to the poor results that many have seen to date with their Cloud Program. Too many people still do not appreciate that in its optimal form – financially, architecturally, and operationally – “The Cloud is Different.”

Over the next few weeks, we’ll dive more deeply into these differences and discuss the moves you can make to realize the full potential of your Cloud Program.