What makes the cloud more expensive?

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The rise of FinOps shows that CIOs are trying to get their finances in order. Firms pay for the flexibility of the cloud, but over time it can cost more than on-premises options. And moving entire workloads or virtual machines to the cloud often means higher costs without increasing flexibility.

Migrating applications that weren't built for the cloud often results in performance issues and increased costs.

Some applications are simply more difficult to use effectively in a cloud environment. These include workloads that make extensive use of (non-cloud) databases, are very I/O intensive, or require connectivity to physical inputs such as IoT sensors or human decision makers. If the data is stored and processed in the cloud, these issues can be minimized, but problems arise when it is not.

Workloads that require very reliable connectivity are usually best run on-premises or in a data center rather than over a public Internet connection to the cloud. Examples include enterprise resource planning (ERP), supply chain management (SCM), and manufacturing systems, as well as financial, healthcare, transportation, and critical infrastructure applications.

Performance can also suffer if an application singapore mobile database the potential to run in the cloud but is not optimized for it. Rebuilding such applications to use the cloud efficiently—especially if they already work well—can be costly and disruptive.

When is the cloud difficult to manage?
From the point of view of IT infrastructure management, its operation requires the appropriate tools and skills.

For example, an IT department may have all the skills needed to manage their own storage infrastructure to maximize uptime and utilization. They have in-depth knowledge of how their on-premises arrays and SANs work and how to get the most out of them.

With cloud computing, users have less granular control over the IT assets they manage. Vendors have improved cloud management tools, but the hardware is still optimized for the cloud provider's operational requirements and "medium" workloads.

Even if IT teams can fine-tune how cloud infrastructure works, they still need to use multiple tools to do so. They also need to understand how the cloud provider’s performance, availability, and provisioning levels work. All of these can be varied and complex.