loader
HTML Email Template – Blog
Pre-header for the newsletter template
 
 
Using Cloud Economics To Model The Value Of Private Multi-Cloud
 
Economic and business opportunities of Private multi-cloud strategies:
 
 
Lets talk about the economies of Private Multi-Cloud
 
 
Quoting from the 451 Research White Paper linked below, and in a nutshell: “Using multiple public cloud providers can make direct savings too. US customers can save half their cloud expenditure by mixing and matching services from multiple providers. If enterprises are willing to make upfront commitments, they can save 65% off list pricing. But total savings depend on how feasible it is to manage these cloud platforms, and there are challenges related to skills and management.
There can be huge value in using multiple public clouds, and the more complex the application, the greater the savings that can be gained on direct expenditure. Shopping around for a cheaper single provider to deliver all requirements will save just 3% to 16% saving. But mixing and matching different services can save a massive 30% in APAC regions. Mixing and matching can halve costs in the US West region.
When multiple commitments come into play, the overall savings can be vast. Anyone can consume reserved instances, sustained-use pricing models and pre-provisioned database capacity – there is no minimum spend required to make an enterprise eligible. As such, an enterprise can make commitments to multiple providers without needing exclusivity. And when this happens, the savings compared to on-demand pricing is substantial – for our small basket, the average savings is around 50%; for our large basket, savings of up to 65% can be made versus on-demand expenditure.
Of course, this misses out on a lot of complexity tied to managing these multiple clouds: skills to manage and operate, platforms that work between providers, and, of course, the cloud-native frameworks that can enable such decoupled applications – but for savings of up to 65%, surely there is an opportunity to be capitalized on. And this cost-savings ability is in addition to the value enabled by being able to use multiple providers.”
Re-read this: “…complexity tied to managing these multiple clouds…” This is where the PetaCMS platform plays an important role. PetaCMS mitigates this previous downside to Enterprise engagement of multi-Cloud. Moreover, access to a Private Hybrid-Cloud compute environment as well as implementation of portable Cloud-Native applications can reduce cost to marginalized expense levels.
The 451 Research white Paper, commissioned by HP, is the best explainer regarding Muti-Cloud economics. It’s also important to calculate even further cost reductions considering the inherent PetaCMS Layer-2 Private Multi-Cloud security. No longer are multiple security expense requirements needed, as the Enterprise compute fabric becomes a data cul-de-sac; where all inbound and outbound data transmission can be observed and secured from a single point.
 
 
 
451-Research White Paper details Multi-Cloud CapEx advantages around cloud usage.
 
Optimizing utilization and labor efficiency across multiple venues on enterprises’ behalf can squeeze costs and give customers the ability to choose the best venue for each workload. New pricing models on both public and private clouds are further enabling enterprise scalability while retaining control. Using multiple public cloud providers can save customers can save 50% to 65% of their cloud expenditure by mixing and matching services from multiple providers.
 
 
CloudGenera exposes some of the “Dark Secrets” of the Cloud pricing structures.
 
Developers and line of business application owners alike prefer the transparency of public cloud but are also finding it difficult to predict their ongoing costs due to the frequency with which public cloud pricing changes.In 2018, the top 3 public cloud vendors by revenue (Amazon, Azure and Google) changed their pricing 150+ times, increased the number of infrastructure and platform options to choose from by 475.96%, introduced multiple new licensing models.
 
 
 
 
You can always contact us via the chat, or email us if you would like to discuss all things Multi-Cloud further. Read more on our Blog