Cloud Migration and the Hidden Costs to Consider

While moving your software development to the cloud may seem like a good idea, there are often high costs associated with this move as well as other unintended consequences to consider. We’ve outlined a few of the costs you need to be aware of and what you need to consider before moving to the cloud. 

Cost vs. Usage

Cloud providers are marketing a very simple and enticing message: only pay for whatever you use.

This message might seem attractive from a cost standpoint, but buyer beware as this cost could spike during your peak usage months. Before you make the move, you want to make sure you’re analyzing your consumption as part of this process to make sure you aren’t caught in the middle of a cost versus usage battle.

The Cost of Convenience

Migrating to the cloud seems logical, doesn’t it? In order to scale, you’d think moving to the cloud would allow you and your development team to grow and work with more flexibility. Unfortunately, that’s not always the case and there can be a hefty price to pay for convenience.

For example, you may need to hire in-house resources to manage this process and technology. You may also have to pay a cloud services provider to administer the management of your cloud software. You’ll also need to consider the costs associated with software storage, and transfer of said software and platforms. It’s now common for developers to carve out time on their calendars, monthly, to monitor their cloud service bills and usage in order to seek potential refunds when billing issues arise.

The Solution

A lot of companies are learning about the pitfalls of the cloud the hard way. For instance, Microsoft announced that this is a problem they’re aware of, and will be addressing. Earlier this year, Microsoft acquired an Israeli cloud provider in order to help companies manage and optimize cloud service usage and costs, via automated monitoring, analytics, and cost allocation.

But that’s only Microsoft. If you’re moving to the cloud, while not using Azure, you’ll want to make sure you don’t end up with cloud costs that careen out of control.

What to Consider Before Moving to the Cloud

Before you communicate your cloud vision, as a CEO or CIO, there are 3 things to consider.

1.) Know Which Systems are Cyclical

Every business has busy seasons and slow seasons, in terms of revenue, new sales, and new customer acquisition. These busy seasons also mean that some of your systems are utilized more than normal. You have to determine which seasons are cyclical in order to tell which systems can move to cloud based on your usage during your business seasons, and which ones are fine being left alone.

2.) Determine How Much Processing and Memory Utilization These Systems Need

Most cloud providers use two measures to charge you for service. One’s memory and the other is processing. The adage ‘memory is cheap’ is no long applicable in the cloud world. It’s the opposite, and memory can cost you a lot, in the cloud world. So be sure you know how much processing and utilization you’re consuming and make a decision.

3.) Understand How Much Data You’re Moving and Storing Between Systems

Even though cloud storage is inexpensive, moving this data between systems can add up. Cloud services also charge by how much data is moved through the pipe. If multiple databases are engaged, this costs money. Moving data can be costly because of a myriad of aspects. Pay attention to these aspects when considering moving your software development to the cloud.

Learn More

Don’t be too quick to move to the cloud, otherwise you could be stuck using a model that ends up costing you more while negatively impacting your enterprise development efforts. Contact us to learn more about how Modularis can help you control costs and future-proof your development efforts, all the while reducing your development efforts by 50 to 75%.