The extensive use of the public cloud has changed the IT business landscape around the globe. The market volume of public cloud is expected to reach $834.60 billion by 2027. A study by SkyQuest suggests 94% of the organizations surveyed are either partially or totally dependent on the public cloud for their IT needs.

80% of the organizations plan to migrate more workload to the public cloud over the next three years. The numbers are mind-blowing. Cloud adoption was rapidly expanding even before the pandemic, and the Covid19 crisis has only accelerated the process. Since its launch, the public cloud has been promoted as the single best solution for organizations of all sizes. It has

been projected as cost-effective, more secure, reliable, and flexible. However, many experts in the field recently expressed their concerns stating that the public cloud has failed to live up to its expectations and started to look like a rip-off.

In this blog, we will explore whether the public cloud is, indeed, the best IT solution for any business or if it is just another myth created by the big companies offering this service.

The Public Cloud Is Not Cost-Effective, Not for All

The public cloud has always been promoted as the most cost-effective IT solution. However, the experiences of various organizations tell us otherwise. 

For small businesses and start-ups with simple applications and thin traffic, the public cloud can be a good option as it helps them save on the cost of setting up a full-fledged data center or a private cloud. However, as the business grows, keeping track of your spending on the public cloud becomes exponentially more complex.

The typical cost of housing your data in a public cloud platform is low. However, once your data is hosted, you have to pay to access it. Your monthly bill will reflect a cumulative cost, and the pricing model is unbelievably complex. As your business expands, the cost of data transfer and other services begins to pile up, which contradicts the claim of the public cloud being the most cost-effective option.  

US-based software development company Basecamp has recently decided to withdraw its IT infrastructure from public cloud platforms. The company has been paying more than half a million dollars a year to Amazon Web Services to avail of cloud services. Basecamp co-founder Davis Heinemeier Hansson writes, “Do you know how many insanely beefy servers you could purchase on a budget of half a million dollars per year?”.

For Basecamp and many other companies, the public cloud has proved to be much more expensive than other solutions such as private cloud or in-house data center.  

Wasted Cloud Spend

Organizations often find it hard to spot wasteful cloud spending. Organizations often find it hard to spot wasteful cloud spending. You may be spending thousands of dollars on services you don’t even use. It can happen even when you follow best practices for IT infrastructure management.

Overprovisioned computer resources often drain your dollars without you realizing it. It is incredibly complex to calculate the cost of a virtual machine depending on various factors. In general, larger machines are costlier than smaller ones. It wastes your money when you mistakenly deploy virtual machines far larger than the resource you need.

Besides, organizations often create zombie resources that they do not use. It can happen for various reasons. Your IT team may deploy it for trial purposes and forget to remove it. It is a common mistake that can drain your IT budget. Also, sometimes resources get deployed in the wrong environment. You continue to pay the bill for the service, but it is of no use to your business.     

Private Cloud or Hybrid IT Infrastructure Can Be Your Answer  

Contrary to popular belief, a private cloud solution can help you regulate your IT budget more efficiently than a public cloud. You have greater control over your IT infrastructure, and the billing is much more transparent.

Right from the beginning, you know how much to pay and what to expect. You may also want to adopt a hybrid IT strategy by dividing your IT workload between a private cloud and a physical server. It will enable you to track your spending and offer greater security.

Service providers like AiNET offer tailored services based on the particular requirements of an organization. We are ready to answer all your questions before we come up with a comprehensive solution for your business’s IT needs. Shoot us an email or call us at 1-888-3AiNET3 (301-931-6574).