In a study from Compuware Corporation from December 2012, 468 CIO’s from Asia, Europe and the US stated that they considered potential hidden costs of a cloud implementation to be a major concern. The areas considered possible problems include performance bottlenecks, poor end-user experience, reduced brand perception, high maintenance and loss of revenue due to performance problems.
Though concerns about hidden costs have been explored before, it’s important to revisit how these perceptions are developed and the conditions under which they may or may not be true.
Hidden costs can come from subscription feeds, system setup and training among other areas. Also, depending on the fee structure, increased usage may be tiered higher, leaving a company with an unplanned expense.
Ask Questions, Solve for the Variables
As in all business ventures, planning is a crucial first step. Knowing what you’re solving for and the variables involved in how you’ll reach your goals can be the difference between being positioned for success or failure. Work with your cloud provider to look at different scenarios involving market changes, service level agreements and other factors that can affect your implementation. If your goals can be met within expense parameters, then variations in expenses can be tolerated. If not, either rework your goals or find a different path.
Not all Cloud Solutions are Equal
Companies need to differentiate between the types of cloud implementations they are considering implementing, and the goals for each. Replacing an entire data center with a PaaS offering could have higher costs and risk than more straight forward SaaS services. However, if the benefits of using a cloud platform create additional sales or market opportunities, then they may be worth any additional costs.
SaaS platforms often come in a pay-for-use format and offer little if any cost risk outside of your internal governance; knowing how much your using and how and by whom it’s being used.
Retarus’ cloud fax and SMS messaging services offer just that type of solution, including detailed real-time reporting that allow you to monitor usage and thereby alleviate the concern of unexpected costs. Retarus will also work with you on planning your system and help you every step of the way. Call or email us today at212-504-2978 or email@example.com