Cloud costs: 4 myths and misunderstandings

Ned Bellavance, director of cloud solutions at Anexinet, offers a related perspective on how we think about costs. Like our other experts, he concurs that “cloud saves money” is misleading.
Moreover, Bellavance says IT leaders are better served thinking about their cloud spending in relationship to the opportunities it creates. He points to the “goldfish effect” of many cloud migrations.
“You’ve moved your existing environment from a medium-size fishbowl to a massive, almost limitless tank,” Bellavance explains. “The net effect is that most environments will grow to fit the confines of their new home.”
That growth almost inevitably means increased spending. So it comes back to value: What are you getting for that spending? How is it transforming the business?
“The key here is that your productivity and revenue increase commensurate with your expanded cloud environment,” Bellavance. “While you are not saving money, you are reducing costs in relation to revenue.”
Read the full article at The Enterprise Project

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