At the beginning of the cloud computing revolution, the idea of paying only for what you use promised you an era of more efficient computer technology. While this has happened with some companies and web companies have been able to grow extremely fast, there is still the risk of cloud recovery as a company loses its cloud spend on a variety of vendors and vendors. more and more diversified suppliers. ,
Moving to the public cloud does not necessarily cost you more or leads to significant savings, but how your business develops and pays for the technology will change, making the cost less predictable than older, long-term license models.
For example, music streaming company Spotify has recently completed a full migration of local data centers to the Google Cloud Platform (GCP).
The next Google Cloud conference in July 2018 asked about the cost of the move, development engineer Ramon van Alteren said: “This is an essential aspect that we need to keep in mind as we move from one location to the next Distributed purchasing position, where everyone can spend money on their business, it depends on our size being up, so it’s hard to compare, and I can not give you numbers. ”
The 2018 CloudS Cloud RightScale report states that 81% of companies use a multi-cloud strategy, with respondents estimating spending of 30% of their spend each year. RightScale itself takes that number at 35%.
For this reason, cloud cost optimization is the main initiative of respondents in 2018: 58% of them said that it is the top priority of the cloud. Nonetheless, the survey found that only a minority of respondents have already implemented automated strategies to optimize cloud costs, such as closing unused workloads or selecting cheaper clouds or regions. ,
This paradigm shift also had a direct impact on past suppliers who have to manage their pricing policies in a world they need to adapt to while satisfying their dismissed customers.
The former German supplier SAP has been dealing with this topic publicly for years and presented its modernized pricing policy in May 2017.
Continue reading: SAP Responds to Diageo Indirect Licenses with Modern Pricing Approach
Hala Zeine, head of SAP development at SAP, wrote at the time: “In an agile world where digital technology predominates, the complexity of licenses hampers innovation … Our goal was to make prices predictable, transparent and valuable applied consistently.
“Does this affect all indirect access scenarios in the age of devices, IoT, and collaborative networks?” There is still much to do and we strive to meet the price scenarios at the same time. To give you more value, take a step directly to modernizing prices. ”
How can companies ensure that they do not go beyond the cloud?