Cloud Journal



Hidden Costs Of The Cloud

Written by  Harpreet | 18 January 2013
E-mail PDF

Cloud Hidden CostsCloud penetration is at an all-time high, according to a new survey report released by Symantec. According to the report, 94% of all major enterprises are now either using or considering moving to cloud based services. Last year's survey of the same companies had revealed a 75% turn out, a significant jump in just one year. Symantec's Avoiding the Hidden Costs of Cloud 2013 survey has revealed that "rogue cloud deployments" were a major hassle in cloud services deployment.

The survey gathered response from over 3236 companies in 29 different countries, out of which 1358 of the responses came from small and midsize enterprises and 1878 came from much larger enterprises. The survey was conducted by a company called ReRez. Both ReRez and Symantec acknowledge that cloud deployment isn't as sweet as it looks on paper. The report showcases the various hidden costs involved in cloud deployments, almost all of which get neglected by most IT managers.

One of the most significant reasons for hidden costs include - rogue cloud implementations. The report states that it was found that 77% of the companies experienced rogue cloud deployments in 2012. These comprise of public cloud applications that aren't managed or integrated into the company's IT infrastructure. This seems to be more common among enterprises. Almost 83% of enterprises experienced rogue cloud deployments in 2012. Among the small-medium businesses, the count was 70%.

The survey report added that cloud deployments also end up adding backup and recovery issues. Companies jumping to the cloud fail to understand the value of backup and recovery. 61% of the respondents in the survey mentioned that they used three or more solutions to backup data - physical, virtual and cloud data. That simply adds to the inefficiency. 43% of the companies revealed that they had "lost" data in the cloud and had to use recovery methods.

One of the advantages of cloud storage is that you end up paying for only what you use. But that applies only if you're using your cloud storage efficiently. Cloud storage utilization, according to the report, is very low - 17% on an average. Enterprises perform much better in this segment with an average rate of 26% and small-medium businesses are at a 7% average which is really, really low. All this while most organizations admit that they strive towards maintaining storage utilization rate of around 50%.

Cloud Data Storage 

The report also adds various ways organizations can work towards reducing these hidden costs. These include - focusing on information and people(not technologies or platforms), educating, monitoring and enforcing policies, embracing tools that are platform agnostic and deduplicating data in the cloud.

[Image Credits: Symantec Oberdieck Online



Harpreet is a technology journalist based in India. He currently writes on Mobile, Technology and Startups. He is an avid reader and a passionate writer. Prior to ToolsJournal, Harpreet used to write for a major English news daily.

blog comments powered by Disqus