- Organizations are moving to the Cloud in order to lower costs (or at least capex and administrative overhead) and increase scalability.
- Because costs are more evenly distributed over the TCO and incremental capacity increases are easy for large numbers of non-administrative IT users to deploy, organizations are experiencing (or at least enabling) ‘cloud sprawl,’ along with uncertainty in the operating budget as consumption patterns vary from month to month.
- It is easy for IT users (e.g. developers) to add a new instance rather than to optimize the use of existing resources, and there is no imminent need (as far as the user is concerned) to “turn the tap off” after capacity is no longer needed.
Our Advice
Critical Insight
- Without cloud consumption governance, users (both in business units and within IT) will risk sub-optimal use of cloud services.
- Traditional planning and management styles will not work in a cloud environment. Organization must use the appropriate mix of capacity planning, capacity management, and cost allocation practices to optimize the value accrued from cloud services.
- Capacity planning will simplify the planning process, maintain consistency, and ensure the right resources are being deployed for the appropriate use cases.
- Capacity management enables organizations to continuously improve on configurations to take advantage of various costs and benefits of private and public clouds.
- Cost allocation is enabled by the measurability of cloud services, and will increase cost visibility, and accountability within your company.
- To get the most value, the architecture of the people, policies, and procedures must be as lean and agile as the IT services your company is deploying.
Impact and Result
- Understand the value and risks of cloud versus traditional deployments.
- Design a cloud consumption strategy around your current internal infrastructure and outsourced services that reflects the needs of employees and ensures that costs align with business value.
- Plan for capacity proactively, but leave room to manage reactively
- Consider third party cloud analytics solutions to help plan, manage, and account for cloud usage and cost.
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Identify and Manage Financial Risk Impacts on Your Organization
Identify and Manage Strategic Risk Impacts on Your Organization
Identify and Manage Reputational Risk Impacts on Your Organization
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Evaluate Your Vendor Account Team to Optimize Vendor Relations
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Implement Your Negotiation Strategy More Effectively
Evaluate and Learn From Your Negotiation Sessions More Effectively
Proactively Identify and Mitigate Vendor Risk
Master the Public Cloud IaaS Acquisition Models
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Improve Your Statements of Work to Hold Your Vendors Accountable
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Master Contract Review and Negotiation for Software Agreements
Master the MSA for Your Managed Services Providers
Negotiate SaaS Agreements That Are Built to Last
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