The Top 5 Cloud
Xi Beam manages over $1B of cloud spend annually. These are the most common cloud strategy & cloud adoption mistakes made by organizations and simple tips to ensure cloud success and improved ROI.
5 REASONS WHY YOUR CLOUD STRATEGY IS FAILING
Organizations are rapidly adopting multi-cloud strategies, evaluating ways to foster greater agility and enable more rapid innovation. We’ve been tracking public cloud adoption and consumption of over $1 billion on an annual basis among our customers, providing a variety of interesting insights that we share in the Nutanix Annual Public Cloud Usage Report.
In conversations with many small and medium businesses (SMBs) and enterprises, we noticed that organizations often struggle with their infrastructure costs after initial cloud adoption due to lack of proper cloud strategy, planning, and governance mechanisms. Cost visibility and governance have evolved into primary challenges for organizations. This calls for a well thought-out cloud strategy.
While interacting with cloud decision-makers and budget owners like Heads of Cloud Strategy, Heads of IT, CIOs, CTOs, IT managers, and CFOs to understand their pain points, we realized that many companies make similar mistakes. What follows are some of the most common mistakes that executives and managers make while moving into cloud, so you can adequately prepare for your cloud journey
OLD INFRASTRUCTURE MINDSET - A CLOUD STRATEGY DISASTER
Organizations adopting cloud as a part of their infrastructure strategy too often forget to make the necessary changes in their mindset and culture that allow for seamless cloud adoption and management. Many customers manage the cloud operations like a traditional on-premise setup with the mindset that the only change is in the provisioning process. Without a significant change in terms of how organizations approach planning, monitoring, and managing cloud infrastructure, there can be an explosive impact on cloud spend.
NO UPFRONT GOVERNANCE POLICIES
Organizations often lack basic governance processes and policies during cloud adoption. In fact, for most businesses, creating governance policies is usually an afterthought. This leads to mismanagement and friction in thought processes amongst business, product, engineering, and IT teams. Having a cloud resource and usage tagging policy in place before starting to use cloud helps to establish control over the lifecycle of cloud infrastructure investments. Creating customized governance policies—including cost allocation and budget enforcement across multiple teams is a good cloud strategy and helps you track all cloud spend and map consumption to business units easily.
NOT EFFECTIVELY USING PAY-AS-YOU-GO DURING CLOUD ADOPTION
Cloud gives you the freedom to provision on-demand IT resources. However, over-provisioning cloud resources take a toll on cloud spend when organizations begin to architect systems with a huge number of resources— which may only be required if there is a spike and will remain underutilized during normal workloads. This stems from a failure to take advantage of cloud constructs like auto-scaling or scheduled scaling. Using the basic tenets of cloud helps to reduce the over-provisioning of resources and optimize overall cloud service expenses.
NOT PERFORMING CONTINUOUS CLEANUP
Lack of cloud usage monitoring leads to another major pain point: uncontrolled spend on unused cloud resources like VMs, databases, load balancers, and networks. Organizations must develop a solid cloud strategy and processes to continuously monitor cloud usage and eliminate wasteful resources to achieve adequate cloud governance. On average, customers waste 5-25% of their costs on resources they no longer utilize. While cloud offers a convenient “pay-as-you go” pricing model, it’s imperative that you develop a “consume-or-eliminate” culture for effective resource utilization.
MISSING DEVOPS CULTURE
In the cloud, automating provisioning, configuration management, deployments, and recovery processes is easy, but most organizations have yet to adopt DevOps practices. It’s important to nurture DevOps culture across your IT and engineering teams to reduce manual effort and increase reliability. Without incorporating DevOps automation as the center of your cloud adoption, you are likely to face increasing challenges in managing cloud services and applications.
Wondering what the easiest way is to avoid these common cloud pitfalls?
Public cloud customers who use Beam are able to easily identify and address the mistakes mentioned above, and improve their overall cloud strategy and governance. If you are in the early stages of cloud adoption or are facing cloud usage challenges, try Beam free here.