How Unexpected Costs Create a ‘Cloud Hangover’

By Dennis McCafferty  |  Posted 12-16-2015 Email

While the majority of CIOs and other IT decision-makers are generally satisfied with their cloud deployments, they're burdened with a wealth of associated, unplanned expenses, according to a recent survey from Sungard Availability Services. The unanticipated costs amount to tens of thousands of dollars—if not millions—for most companies, to pay for upgrades, customizations, software maintenance and consultancy charges. With this, organizations are looking to gain competitive advantage, increase security, enhance business agility and, ironically, benefit from new cost savings. (After all, you gotta spend money to save money, right?) In balancing the need to minimize unplanned costs while deriving the most value out of the cloud, CIOs admit that, while they're glad they invested in the cloud, the phenomenon hasn't exactly lived up to its hype. "Businesses are experiencing a 'cloud hangover' from the unexpected expenses and the market perception that indicated all workloads can easily move to the cloud," said Chris Ortbals, vice president of services product management at Sungard AS. "For many enterprises, the cloud can bring great efficiencies for the right workloads. (But it's important) to identify what can be optimized by shifting to the cloud and what may be best suited to perform best in a hybrid approach." More than 245 IT decision-makers took part in the research.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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