The rising cost of cloud computing

Whether you hire the granddaddy of cloud computing, Amazon, or some other cloud computing service, there is no doubt that startups pretty much build their businesses with the help of cloud computing services that give them instant access to cloud services over the Internet.

What is the Cloud?

So here is some technical news for you. The cloud is basically a metaphor for a collection of computing resources such as virtual servers, network and storage equipment, CPU and RAM that are used by users over the Internet. The term cloud computing primarily refers to the practice of using those resources collectively to achieve an organization’s storage goals rather than using their on-site equivalent.

Cloud computing services offer organizations the option to purchase IT as a service instead of having to create an entire section to house a variety of hardware equipment. This is the main reason why cloud computing services are most often compared to a power grid station. Because users do not need to understand the infrastructure or devices they have used, all they have to do is use the cloud computing service and make monthly payments for the services they are using in their business.

It is a well-known fact that users who visit e-commerce websites do not stay for too long if the website crashes. So, as companies migrate to the cloud for the sole purpose of improving their services, the cost situation becomes even more difficult. From a management point of view, the following are some of the main areas of concern in the use of cloud computing.

• Poor user experience due to performance bottlenecks. With e-commerce being the only leading area of ​​cloud applications according to the latest technical news, a recent survey showed that nearly 70% of respondents already use cloud resources to support their e-commerce websites.
• Loss of revenue that is due to poor performance or troubleshooting related to newly deployed cloud services.
• The increased costs of hidden charges that can arise later when a business has entered a complex environment.
• The effort required to manage service level agreements and providers.
• The impact of poor performance on consumer perception of your brand, product or service. This is one of those areas that will definitely affect brand loyalty.

The following are some of the questions that companies should ask themselves when making the transition to the cloud.

• Problems related to the availability of the service?
• What happens when transactions roll back due to slow service?
• How much does it cost you to sit and wait while you’re on the phone with vendor technicians to fix a problem?

Bottom line

The fact is, whether cloud computing works for your business model or not, eventually all companies need to scale in ways that are not possible with the use of physical servers. While there are companies that seem to have soured on the cloud, the truth is that even the best in-house hardware can’t compare to the cloud, which is why companies need to come up with a plan before making the switch.