Do you know how much your company is spending on the cloud? If not, you may be in for a shock. Many businesses are unaware of the extra costs of using the cloud. In this blog post, we’ll discuss some of those unexpected costs. Keep reading to learn more!
Internal Labor and Consultants
You’d think that your monthly subscriptions are all you need to worry about regarding costs. Unfortunately, you’ll have to factor in the cost of the employees who are maintaining these accounts. This isn’t just an issue for larger businesses with devoted IT staff. Even smaller companies may have one or two people handling their cloud services. While they may not be full-time, they do take up some of your budgets.
In addition to internal labor, you may need to hire external consultants. Cloud providers often limit the types of questions that employees can answer or respond quickly. If you want more detailed help with a cloud plan, you may have to pay for it outside the company.
Compliance Issues
If you use cloud services in regions where compliance rules exist, be prepared to pay extra. Regulations such as GDPR and CCPA ensure that companies protect personal data and privacy adequately. To do this, most providers offer additional Office 365 onboarding security services. These costs may not seem like a big deal, but they can add up quickly. If you only make a handful of requests per year for security audits, your price might go up due to the need for more resources.
Data Transitioning
Digital transformation has taken over many businesses. Some employees now rely on the cloud for their daily tasks. Any time you change, like switching to another provider, you can expect some data transition costs. The issue is that there are often security issues involved with moving information around. For example, if someone’s work was stored in Dropbox and that person left the company, you may need to pay for moving this data.
Vendor Lock-In
A lot of cloud providers offer discounted services in exchange for a commitment. For example, Microsoft Office 365 offers businesses a great price when you pay for a year upfront. This deal also includes access to their apps and other cloud features. Though it sounds convenient, the limited options can cost companies more in the long run. Lock-in makes it difficult to switch plans or providers, which may not meet your needs.
Internal Failures
Despite what some people might think, cloud providers aren’t infallible. When there is an internal failure with a software program, it can lead to downtime and lost productivity. While many companies offer service credits during these times, they usually only last for a little while. You’ll still end up paying for these failures in the long run. Staying with an experienced, top-tier provider can help you avoid these kinds of issues.
Redundant Systems
If your company relies on cloud services to function correctly, then you need to make sure they stay up and running at all times. While most providers are reliable, you never know when there will be an issue. To avoid unexpected downtime, you should consider using multiple cloud providers at once. That way, if one fails, the other(s) can keep your company running. This will ensure that your employees can stay productive, no matter what happens.
Applicaation Refactoring & Integration
There are two types of cloud applications: SaaS and Iaas. It comes down to this: SaaS apps are hosted, while Iaas apps are not. When you use an Iaas app, you’ll have to factor in the cost of refactoring. This can be tough if your company doesn’t have the right resources or experience. If your employees aren’t familiar with Iaas apps, they may need help integrating these technologies into their workflow. While this isn’t necessary for all cloud services, it can be costly when working with sensitive data.
Conclusion While the idea of moving to a cloud-based system looks pretty appealing and cost-effective, it’s essential to understand the costs involved fully. Most businesses are surprised by how much money they end up spending on services like payroll, IT support, etc. Keep these points in mind if you’re considering adopting a cloud system for your company.
Author Name: Steffy Alen