Multi-cloud adoption has made it more of a challenge for enterprises to predict their cloud spend. Cloud native will make it even more difficult and even hinder your business success, unless you fundamentally change your mindset on how you integrate cost analytics, adopt the principles of FinOps and create value for your end
customers in a fundamentally different way.
Multi-cloud has become a must have across industries and continues to be one of the fastest growing areas of IT spend. Gartner’s latest IT investment forecast, for example, expects data center systems spend to drop from $195 billion in 2019 to $190 billion through 2022. Conversely, spending on cloud infrastructure services (IaaS) is expected to ramp up dramatically from $39.5 billion in 2019 to $63 billion through next year.
More efficient cloud cost control
Through 2024, most legacy applications migrated to public cloud IaaS will require optimization to be more cost effective, according to Gartner. This will see cloud providers building up their native optimization capabilities to provide enterprises with cloud choice in cost-effective architectures that will satisfy their varying performance demands.
Cost optimization is fundamental to any cloud migration strategy. It is essential to identify from the onset the right applications to migrate, for example. Also, cloud-native, microservice-based applications, which are created for distributed multi-cloud deployments, may perform better than traditional applications but could also lead to extreme complexity over time. This can make it more difficult to predict your cloud costs unless you’ve adopted modern tools to connect these continuous variations in cost to business outcomes.
Additional considerations for cloud native
Cloud native is an approach to creating and running applications in the cloud that takes advantage of cloud computing’s distributed delivery model. This increases speed, agility and scalability, all essential ingredients to creating applications and services for the digital economy.
However, cloud-native projects usually require additional commitment, in both financial terms and from human resources. It is a continuously evolving landscape as new tools and practices are being continually developed. Introducing cloud native principles and DevOps best practices into an enterprise is dependent on adopting cross-functional methods and ways of working that address business goals. This may require executive sponsorship, culture training and mentoring budgets.
Furthermore, cloud native requires a different perspective on costs. If enterprises start to look at the costs before the business outcomes, they will not get the outcomes or agility they expect. While centralized mechanisms need to be in place to monitor spend, locking down spend prematurely will inevitably choke the speed of development.
This is what FinOps aims to address with cloud financial management. Nonprofit organization The Linux Foundation has linked up with the FinOps Foundation to advance this discipline through best practices, education and standards. FinOps will help ensure that enterprises have insight into their cloud spend and drive efficiencies for DevOps.
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