What CIOs and CFOs need to know about multi-cloud costs

The impact of the cloud on business goals

  • Automation and Agile / DevOps transformation (85% “very successful” or “successful”)
  • Cloud native development of new applications (81% “very successful” or “successful”)
  • Operation of a modern range of applications (79% “very successful” or “successful”)
  • Improvement of the customer / end-user experience (77% “very successful” or “successful”)

It is a challenge that these advantages remain sustainable and repeatable, because if multi-cloud environments are not properly managed and administered, this can have considerable disadvantages: costs can skyrocket, security and compliance can be impaired and the competitive advantage can prove to be short-lived.

In the IDG survey, respondents listed costs and integration as the most important issues. The average cloud waste per company was estimated at 25 percent. In view of the increasing decentralization of IT and a greater involvement of the specialist departments in technology purchasing, this overly careless approach may not come as a surprise. It is probably not in conflict with the waste of conventional IT operations, but it is nevertheless a considerable burden on all resources.

According to Dell’s Mike Van Vliet, costs, cloud operations, data and security are closely related to understanding how the cloud fits into overall business strategy.

“The primary goal of the C-Level managers is to create a competitive advantage through innovations. You can see that in a very extreme form in Formula 1, where innovations and competitive advantages have to be delivered every two weeks. ”

Dell Technologies sponsors the McLaren team. Its vehicles have 12,000 components, while the engineering team has access to 20,000 components in each race. This constantly analyzes the data of the 20,000 components, introduces innovations, tests them and decides whether they will be used in the next race.

“The task of McLaren’s IT group is clear,” says Van Vliet, “It is to give engineers access to the data and the necessary software at all times. You should ask no more, but no less, of your technology partners, especially your cloud providers. ”

“Instead of immediately targeting the cloud, the CIOs should first evaluate the cloud opportunities,” suggests Van Vliet. For new applications, this primarily means switching to new architectures based on microservices and containers, and using SaaS alternatives.

For existing applications, this means that the workload must first be assessed. Here the cloud suitability of the application portfolio must be determined, i.e. which service you need: IaaS, CaaS or PaaS. These can then be provided in a public cloud, a private cloud or a suitable combination.

“Once you have decided which cloud service is best for an application, you can start with the necessary measures such as moving, reprogramming, switching off or migrating,” explains Van Vliet.

The most important thing in this process is a smooth coordination between the CIO, CFO and the LOB managers. Enterprise-wide standardization of applications may encounter internal resistance. However, it eliminates redundant functionalities, frees up internal resources and enables cost savings through lower license fees.

Automation in the provision of IT services speeds up labor-intensive tasks and thus makes the IT teams more productive.

After all, the provision of self-service systems not only frees up a lot of internal resources, the company can also access all data and programs at the necessary speed.

This ensures that the right applications are available on the right platforms and that they are available to the right people at the right time. It also gives the CIO and C-level executives the necessary overview. This enables them to control costs, maintain security and compliance, and at the same time clear the way for continuous innovation. But above all, this approach provides the platforms and resources that enable your company to innovate and create competitive advantages.

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