5 ways to avoid cloud waste

A big reason why we all use clouds these days is to save money from running our own server rooms and data centers. But, if you don't use clouds correctly, you can still lose money. Here's how to avoid those costly mistakes. Today, everyone uses the cloud. According to Flexera's State of the Cloud 2020 Report, 98% of businesses are using at least one public or private cloud. The other 2% are fibbing or still running Windows XP.

Today, everyone uses the cloud. According to Flexera's State of the Cloud 2020 Report, 98% of businesses are using at least one public or private cloud. The other 2% are fibbing or still running Windows XP. The No. 1 reason to move to the cloud is to save cash.

But, simply moving your IT infrastructure from a "build-your-own data center" capital expenses (CapEx) model to the public cloud's operational expenses (OpEx) model doesn't magically save you money.

As David Smith, a Gartner Distinguished VP Analyst puts it, "The prevalent myth about the cloud is that it always saves money. This is sometimes the case, but don’t assume you will save money unless you have done the hard work of honestly analyzing your situation."

It appears most companies don't do that analysis. A study by Coalfire, a cybersecurity company found that while most "organizations expect to save money with cloud migration … in reality just 36% of survey respondents reported cost savings." Why? Coalfire blames a lack of planning. "Fewer than 50% of respondents conduct a cloud readiness assessment during the planning stage. This creates large blind spots that increase the risk that cloud deployments will fall short."

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