Questions you should ask your cloud provider

During times of inflationary pressure, it is prudent for companies to optimize their expenses. Hence, if we plan to utilize external IT resources and expect to save through cloud service, it is essential to prepare a set of questions to present to the potential cloud provider.

A study by Gartner[1] showed that organizations that fail to optimize their cloud strategy may end up overpaying for cloud services by up to 70%. And yet, nearly half of the businesses are considering the cloud exactly in search of savings. While inflationary pressures and macroeconomic conditions mandate cost analysis, only 13% of entrepreneurs state that market challenges will not derail their current plans. However, 27% of companies will decrease their investments in fixed assets, among other areas. How can they maintain seamless operations? The solution is to optimize, but with prudence.

According to a Gartner report, almost a quarter of the average IT budget is allocated for the purchase of hardware. Therefore, it is worth starting the planned cost reduction by looking at investment expenditures (CAPEX), which is all the more reasonable since, regardless of the macroeconomic situation, advancing digitization will force organizations to modernize their application and infrastructure environments in order to increase cost efficiency and business flexibility. The solution may be infrastructure provided in a subscription model, which relieves you of the need to purchase your own hardware or maintain a server room. The service model also allows you to move to an operational (OPEX) model and pay for resources that you need, rather than for the constant readiness of full infrastructure. This is an important item on the company’s bill, especially since, according to a study[2] by OVHcloud, almost every Polish company maintains its own machines in some form, and as many as 60% of respondents use only on-premise solutions and do not outsource infrastructure.

Choose a cloud, but which one?

Migrating to the cloud, as reflected in case studies, tangibly supports savings, operational efficiency, and business flexibility. For example, at Sportano.pl, a multibrand sports store, the public cloud allowed it to reduce costs by nearly 50%, while optimizing operations and increasing computing power by 30%. https://www.ovhcloud.com/pl/case-studies/sportano/

Optimizing cloud utilization allows for better cost control, and smart workload migration can even help save money, while increasing business flexibility. However, controlling the corporate budget and preventing financial leaks depends on knowledge of how much, and what we will pay this month and in the coming months. Stopping investments in human capital, fixed assets, real estate – the list of sacrifices can be long, but the socio-economic situation does not have to be associated only with “tightening the belt”. The pursuit of reducing operating costs while maintaining high performance and service levels, i.e., cost optimization, is worth looking at through the prism of investing in the development of the company. There are many ways to optimize investment spending (CAPEX), one of which may be, for example, using the cloud which – if implemented properly – can be counted.

Before you say “yes” – what should you ask the cloud provider?

The cloud – easy to say… However, it should be remembered that digital transformation and the choice of a provider should not be dictated by fashion, promotions, and especially not by temporary pressure. A client interested in moving their business to the cloud should ask the provider a few questions, among others about their experience, references, GDPR compliance and certificates. The latter can be particularly important for the medical or financial sectors.

Other important parameters to pay attention to when choosing an offer are also security, flexibility, availability, and scalability of solutions. However, clear conditions for terminating cooperation, transparent rules – how to transfer data to another provider and what potential costs are involved – are equally crucial. It is important that all changes and/or termination of the agreement with the service provider, i.e., reversibility – often also understood as an exit option – are clear.

It is also worth asking the provider about:

• Where exactly the data will be processed and whether there is a possibility to choose the data center location;
• Trial period of the service, as well as the extent of dedicated account manager support, which will allow discovering and verifying all the capabilities of the cloud in terms of specific needs, also before making the final decision on the agreement;
• The agreement itself – whether it can be for a specific time or immediately permanent, what the payment policy looks like, and whether we are at risk of vendor lock-in, i.e. what are the scenarios for changing providers;
• All the components of the price, including the costs of data transfer, API queries, necessary to be able, with the greatest possible probability, to know the bill we will pay at the end of the month already at the beginning;
• The limits of the offered service, and more precisely the provider’s actions in case of exceeding them. Helpful, in case that the sweet taste of success, e.g. a marketing campaign ended with better results than anticipated, would not also have a touch of bitterness.

Services tailored to individual needs

Thanks to agility, flexibility and billing models, the cloud can guarantee companies independence and almost unlimited growth potential. Of course, if we choose a proven provider. This is especially important because its role has evolved recently. The importance of the provider is constantly growing and now it is increasingly treated as a business partner. It is mutual respect and trust that we have with customers that are key to the development of our companies.

In a world where data is at the heart of all aspects of life, the provider should support its customers’ ideas, open up new possibilities for them, help them develop further and offer a wide range of services, constantly developing its portfolio. An individual approach to the client and an offer of customized tailored services are also appreciated, as this allows providing the best quality of service and satisfaction for both parties.

As with any area of business, with cloud computing, the basis for success is transparent rules and mutual understanding of needs, which allow benefiting from the potential offered by the cloud. And if you want to check how to calculate your cloud or verify if it is optimal, go to this address: www.countthecloud.com

Joanna Parasiewicz, Head of Communication & Marketing, OVHcloud CEE

Check, how to optimise the cloud

Read more about case study in Sportano.pl

[1] Source: Raport Gartner: „Realize cost savings after migrating to the cloud”, April 2021

[2] “Technological debt through the lens of the Polish companies”, an OVHcloud study conducted by Data Tribe, May 2022.

Last Updated on December 12, 2023 by Anastazja Lach