4 Hidden Costs In Cloud Computing For CXOs

While there is no gainsaying that cloud is being fast adopted as the blue eyed child by enterprises and SMBs alike, however, it is also true that most CIOs are apprehensive about the hidden costs of the same.

According to a survey: “79% of the CIOs are concerned about the Hidden cost of cloud computing”

According to the study conducted by Research In Action from Compuware Corporation in December 2012 which gathered 468 CIOs from Asia, US and Europe as respondents in order to look into the top investment priorities and IT projects of 2013. Perspectively, the study showed that 79% of the CIOs thought of the potential hidden costs of cloud computing. The costs here can be anywhere from subscription fees to system and staff setup and training. Let’s discuss the detailed concerns they have of cloud computing migration:

Poor end experience due to Performance:

Almost 64% of the CIOs believe that due to cloud application bottleneck usage cloud resources and e-commerce will experience poor performance. This goes right to the customer end-user experience as well, since e-commerce is the leading cloud application area, the survey also finds that – “78 percent of respondents are already using cloud resources to support e-commerce”.

Expense of talent

There could be a need to hire specialists or a varied talent than what exists in an enterprise. That as a cost if often not considered but adds to the total cost of ownership. So do care to estimate this cost or check with your cloud provider if it can help in this matter by way of automated processes , additional account management services, off-role employees or any other way.

What about security?

Actually the key question is- Is security an additional expense or is embedded within the total negotiated cost. Often security (mostly around access and BYOD scenario) as an expense is the last item for discussion, however one needs to talk out not just basic security but also from context of access and flow of information.


Data Processing & Intelligence

Enterprises need to be aware that they will not be using cloud just as a storage platform but also as a data intelligence and processing platform. If that is the case the question that needs to be asked is if data analysis, processing and insights will be extra?

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  1. Pingback: Hidden Cost Of Cloud Computing | HPC ASIA

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