Cloud Computing Relationship Between Cost and Budget Equation

Cloud Computing has changed the Relationship between cost and budget equation. For any enterprise, cloud computing has changed the equation between cost and budget. IT managers can now better understand where their money is being spent.

The use of cloud infrastructure as a service (IaaS) has shifted part of enterprise capital expenditures, and IT service deployment time has changed dramatically.

In the past, IT managers may need to build a budget model three years in advance, which requires a very rigorous process. Through cloud computing, the current cost model is based on demand. What should companies do?

Deployed a pay-as-you-go cost model, which is useful for regular servers and configurations, and can be flexibly expanded according to demand. For example, the server of an enterprise needs to be used for backup every day, and the cost of one month is much cheaper than doing it inside the enterprise.

In the past, planning to purchase storage solutions was a headache because of the high cost of storage equipment. Now that cloud storage is more flexible and cost-effective, the savings are self-evident for TCO.

Pros and Cons of Cloud Computing Cost Model

If you want to conduct further cost management, you also need to consider infrastructure automation. This process requires building a template for the application, and then managing the template in the source code library. Use tools to manage the cost of cloud servers.

Many years ago, when enterprises were getting closer to virtualization, there was a situation of virtual machine spread, and administrators needed to create a large number of new virtual machines. If cloud computing is not properly managed, it will cause serious problems, so timely tracking is very important.

When cloud computing is used properly, companies will benefit. For example, it performs well in disaster recovery, backup, and website hosting, because more capacity can be quickly added during peak hours. Between the cloud infrastructure and the local data center, this increase in capacity can be achieved through a VPN.

In addition, software as a service is a good starting point for cloud computing, in particular e- mailing this regard. For example, tools such as SharePoint can make corporate teams collaborate better.

However, using the cloud computing cost model, the cost industry can easily skyrocket, whether it is building a private cloud or using public cloud computing services. Although companies count the upfront procurement costs as a factor.

But, they usually ignore the costs associated with building and managing the cloud, and the IT team is constantly performing maintenance. We also mentioned the use of cloud cost analysis tools to help companies track cloud computing costs.

The choice may not be a viable choice. Controlling the cost of cloud computing is not a simple matter, but as long as you can fully do your homework in advance and truly understand the work you want to get involved, then it can be done.

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