Where to look for cost savings in the cloud

The potential to save money is by no means the only reason for moving to the cloud. Many companies cite potential benefits such as greater agility, easier scalability, and even improved security as drivers for shifting data and applications to a cloud environment.

A cloud migration can actually end up increasing expenses for companies in certain areas, especially if a lot of updates and maintenance are required. Still, there are clearly lots of ways organizations can save money by moving data, applications, development, and other components of IT to cloud-based services.

Following are six examples of how enterprises can achieve significant cost reductions via the cloud. It’s important to keep in mind that the impact on costs can vary greatly, depending on a company’s current technology infrastructure, the types of applications it runs, the cloud services being used, and other factors.

Power down the data center

For many, a move to the cloud means a shift away from on-premises data centers. That’s the case at hospitality company Wyndham Hotels & Resorts, which realized cost savings of 45 percent by shutting down a data center and migrating applications to the cloud.

After spinning off from its legacy company, Wyndham decided to exit its corporate data center, working with partner Rackspace on the migration to the cloud.

“We realized early on that we were not going to be able to completely migrate to the cloud right away, especially with some of our legacy applications,” says Scott Strickland, executive vice president and CIO at Wyndham. “Through partnering with Rackspace, we determined that a colocation strategy made sense as a launching point toward a long-term IT evolution.”

Copyright © 2020 IDG Communications, Inc.

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