Dave Errington, Cloud Specialist at CSI Ltd, discusses the shift from cloud to on-site infrastructure, outlining top strategies for optimising cloud costs, security, and performance.
In recent years, there has been a growing trend of businesses migrating from public cloud services back to on-site infrastructure. This trend is primarily due to rising costs and inefficiencies associated with poorly optimised workloads. The pandemic-induced rush to the cloud has left many organisations with solutions hastily set-up, that are now due for a thorough review.
Research by 451 Research indicates that 84% of businesses that had transferred workloads to the public cloud have now relocated some of them back on-site due to security worries (36%) and issues related to cost and performance (16%).
As CFOs are increasingly calling for cuts in cloud spending, IT departments are feeling the pressure to examine and refine their cloud strategies. As we move towards the next phase of digital transformation, with a particular emphasis on AI, it’s vital to ensure that your cloud strategies are not only cost-effective but also in line with future organisational objectives.
The significance of a robust cloud strategy
Accenture reports that 89% of businesses are now pursuing a multi-cloud strategy, partnering with at least two hyperscalers. However, the question remains: are these strategies yielding the expected outcomes?
Here are six important factors to consider when evaluating your IT estate and determining how your workloads perform in their current cloud configurations.
- Scalability
Scalability is a primary benefit of cloud computing. However, not all workloads require the same level of adaptability. It’s crucial to identify which of your workloads need rapid scaling and which do not. Public clouds offer unmatched scalability for dynamic workloads, but for static or less variable tasks, private clouds or on-site solutions may be more suitable. By placing the right workload in the right environment, businesses can optimise performance and cost-efficiency. - Cost management
Predictable cloud costs are a fundamental aspect of an effective strategy. The appeal of pay-as-you-go models can quickly become a financial burden if not properly managed. Implementing a cost management strategy that includes regular monitoring, forecasting, and adopting savings plans can help manage your expenditure. Avoiding large upfront investments and maintaining flexibility in cost structures will ensure that your cloud services remain a financial asset rather than a liability. - Security and compliance
Security and compliance are essential elements of any cloud strategy. Both public and private clouds offer advanced security measures and compliance features to protect sensitive data and meet regulatory requirements. Therefore, utilising a cloud providers’ tools can enhance your security posture and simplify compliance management. However, it is essential to regularly review and update security practices, ensuring they are robust and align with current threats and regulations. - Disaster recovery
A disaster recovery plan is only as good as its last test. Regular testing of your disaster recovery plans ensures that they work when needed. Public and private cloud platforms offer built-in disaster recovery options that enhance resilience and minimise downtime. By integrating these options into your overall cloud strategy, you can safeguard against data loss and maintain operational continuity. - Innovation and agility
The pace of technological change requires businesses to be agile and innovative. Cloud services that enable rapid deployment and modernisation of applications are vital for maintaining competitiveness. The right cloud environment can foster an innovative culture, allowing for quick experimentation and iteration. This agility can be a significant competitive advantage, enabling you to respond swiftly to market changes and customer demands. - Global reach
Latency can be a critical issue, particularly for businesses operating across multiple regions. Leveraging the global data centres of public cloud providers ensures low-latency access, regardless of geographic location. This global reach is particularly important for businesses with a worldwide customer base, as it ensures a consistent and responsive user experience. Strategically utilising these data centres can help you overcome latency challenges and expand your global footprint.
Adopting a hybrid cloud approach
The push towards AI and other advanced technologies is intensifying scrutiny of cloud costs. As businesses prepare for significant investments in AI, ensuring that your cloud infrastructure is optimised for cost and performance becomes even more critical.
According to a report by McKinsey, companies investing in AI often see an initial spike in infrastructure costs, making it imperative to have a robust and efficient cloud strategy to support these new workloads.
There is no one-size-fits-all solution when it comes to cloud strategy. Each organisation’s needs are unique, and the approach will vary accordingly, therefore, a hybrid cloud conversation is essential. By combining public and private cloud solutions with on-premise infrastructure, you can unlock greater value from your technology investments.
A hybrid cloud strategy allows for greater flexibility, scalability, and cost management, enabling you to place the right workloads in the right environments. This approach not only enhances performance and efficiency but also supports innovation and global reach.
Developing a future proof cloud strategy
By addressing these six key considerations, your business can develop a cloud strategy that is both resilient and adaptable. This strategic approach will not only meet current operational needs but also pave the way for future digital transformation initiatives such as the integration of AI technologies and the higher compute power they will need.
As CFOs and IT departments collaborate to optimise cloud expenditures, a balanced and thoughtful approach will ensure that cloud investments continue to drive business success.
