Breaking down the costs of cloud computing

Cloud computing is the delivery of various services and resources over the internet, including data storage, servers, databases, networks and software. Thanks to its accessibility, speed and efficiency cloud computing has made a breakthrough for businesses with all the data backup and storage solutions. That’s why we’ll discuss how to get a handle on cloud computing costs and what to look for when choosing cloud solutions to keep up with the ever-changing and evolving market.

How do IT providers determine the cost of cloud computing?

The costs of cloud computing depend on your specific needs and requirements. You need to decide what products and services you need, and based on that, the IT service provider can estimate the pricing model, tier and usage. The main factors that service providers consider when deciding how much to charge their customers are:

  • Networking costs that include hardware, network setup, labor and maintenance costs.
  • Storage costs are costs that include running your storage hardware or buying new hardware for your storage needs.
  • Computing costs which are based on your individual needs, such as licensing fees based on the operating system your business uses. Computing costs often vary by the cost per GB of virtual RAM.

What are the benefits of migrating to the cloud?

Migration to the cloud can make your workflow more efficient, allow you to generate more revenue and significantly reduce IT infrastructure costs. Some of the most common reasons why businesses are moving to cloud computing include:

  • Greater efficiency and flexibility
  • Quick recovery of data in cases of a disaster, such as a power outage.
  • No additional maintenance costs, as the provider is responsible for maintaining the hardware, software and networks in the cloud.
  • Fast setup since the IT team can configure and manage the setup remotely.

How to choose the right cloud provider?

There are several cloud providers, and which one you ultimately choose depends on your cloud strategy and whether you want it to be a private cloud that sits on shared infrastructure or a provider where you choose a specific solution or location. Next to infrastructure (hosting, storage, and compute power), they offer solutions for serverless applications, machine learning & AI, and cyber security. The most popular cloud providers are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

Amazon Web Services (AWS) is the most widely used cloud platform in the world, serving millions of customers including Samsung, Coca-Cola, Slack, and Netflix. AWS offers three different plans. The first, Pay as you Go, allows users to upgrade the server if the demand for storage increases over time. The price is based on the storage, software, application, and memory you use on the server. The second plan is for users who already know their monthly storage needs and can pay the price for the spare storage in advance. The third plan is high-end server storage with additional storage power and highly configured computer software. This cloud service is flexible and offers a wide range of infrastructure applications.

Microsoft Azure is one of the most reliable cloud service providers thanks to its low price. Microsoft has a three-year price commitment, which means that users can enjoy the fixed price for the next three years, even if the price goes up. This is a good deal for businesses that know their storage needs will increase over the next few years. While Azure offers enterprises a wide range of features, robust open-source support, and easy integration, it requires significant management and platform expertise, which inevitably means additional costs for users.

Google Cloud Platform (GCP) offers customers a highly specialised service in three main areas: Big Data, machine learning, and analytics. GCP has a basic plan that starts with the pay-as-you-go model, which allows users to activate the plan at minimal cloud hosting costs. It offers powerful data analytics and storage, as well as excellent integration with other Google services. The main criticisms are the limited features, poor documentation, and lack of solid customer support. But, Google’s security and cost-effectiveness are key reasons why users choose it. In terms of economics, GCP is cheaper than some of the other top cloud providers. This makes it affordable for startups and small businesses.

Are there hidden cloud costs?

Before you settle on the cloud solution, it’s important to plan the entire cloud migration project in order to avoid unplanned costs of cloud computing costs. Here are some things you should consider:

  • Exceeding the data limits specified in your contracts for storage and backup
  • Timely decommissioning development and testing environments
  • The time it’ll take you to migrate your software and data to the cloud
  • Expiration of free cloud
  • Staff to monitor and manage your interfaces with cloud providers
  • The shutdown of on-premises equipment, such as employee transfers, asset write-offs, and data cleanups

The cloud can reduce IT spending, but only if the organisation has a detailed strategy that keeps budgets under control and prevents overspending. Moreover, if you choose the right service provider and an experienced IT team that takes into account your overall business planning and considers the ROI of cloud computing, there will be no problems with a correct cost estimate.

How can I calculate the cost of cloud computing before I move?

When calculating the cost of migration to the cloud, there are two important things to consider: personnel and cloud costs.

Personnel costs are harder to determine because it depends on the number of developers and team members you need to hire. It depends on the size and scope of the application, but you can estimate whether it’s better for you to outsource or hire an in-house developer.

Cloud costs include the total cost of transferring the data and the cost of storing the amount of data transferred. Many cloud providers offer calculators that you can use to estimate your ongoing cloud infrastructure costs.

AWS calculator

Microsoft Azure calculator

GCP calculator

How do I find the right IT team for my business?

The first thing you should consider is whether to employ an internal or external IT team. Successful companies increasingly choose to outsource their IT services because they struggle to find true experts and flexibility in the various phases of the project. For example, if you employ an internal IT team, you cannot reduce the number of your employees depending on the project size (which is always changing). On the other hand, the size of the outsourced team changes according to the needs, and you have a pool of talented IT professionals available whenever you need them.

Valcon provides agile, affordable, and highly skilled software development teams as a service to companies across Europe. Our teams support you in all project phases:

  • Analysing your business
  • Creating detailed, agile, and flexible roadmaps
  • UI /UX design
  • Software development
  • Migration to the cloud
  • Maintenance

We hope this was helpful to you and that all your questions have been answered! All in all, the best way to safely migrate to the cloud is to choose an IT service provider with an extensive portfolio, as they can create and follow a good cloud migration strategy to simplify things and ensure ROI.

Want to learn more? If you want to learn more about breaking down cloud computing costs, please email [email protected] and we’ll be in touch right away.