TCO (Total Cost of Ownership) is the cost of a service or product, which includes all kinds of running or hidden charges. For a hybrid cloud solution, the total cost encompasses the licensing fees, subscription rates, maintenance fees, and metered usage of the cloud resources and on-premise infrastructure.
By analyzing the hybrid cloud TCO, companies can examine costs against rewards to make crucial decisions related to cloud transition. You may start by asking the following questions:
- Is the cost worth the value?
- Does the hybrid cloud provide timely access to accurate information?
- Will it enable dynamic information processing to respond to business needs quickly?
- What other benefits or competitive advantages will it give? Will it improve customer retention and increase profitability in the long run?
To answer these questions, let us outline how hybrid cloud computing solutions can provide cost benefits to your business and help you implement best practices that reduce overall TCO.
The Cost Benefits of Hybrid Cloud Computing
With several enterprise applications and data currently hosted on-premise, companies look forward to improving data governance, security, and performance while optimizing costs. Cloud technology cannot cater to this as a stand-alone solution. So, more and more enterprises are opting for hybrid cloud management to realize the following benefits:
1 Infrastructure Optimization
The hybrid cloud infrastructure does not demand the replacement of expensive legacy hardware or code. Instead, it optimizes the existing on-premise infrastructure and incorporates cloud capabilities at a fraction of the cost, reducing your overall TCO.
2 Elimination of Additional Data Storage
For modern businesses, data is a priority. By leveraging cloud-based data centers, the hybrid cloud removes the need to buy on-premise disk arrays for additional storage, providing substantial savings. Alternatively, by keeping some sensitive data on-premise, the hybrid cloud eliminates the risk of data loss- meaning you do not have to pay more for data security.
3 Scalability at a Low Cost
The flexibility of the hybrid cloud enables you to scale up or down at the lowest possible expenses. To meet your ever-expanding business needs, you can purchase storage space in the cloud data centers as and when you need it at a minimal cost, compared to installing expensive physical data servers for on-premise systems.
4 Reduces IT Resource Consumption
Finally, hybrid cloud computing enables enterprises to reduce their overall resource utilization within the IT department. By transferring workloads to the site, the hybrid cloud helps enterprises avoid incurring expenses related to outsourcing IT maintenance or recovering unplanned downtime.
5 Best Practices to Reduce TCO and Optimize Cloud Expenditures
Companies should calculate the total cost of ownership before embarking on the hybrid cloud journey. Consider the following five best practices to reduce TCO and optimize cloud bills:
1 Support Workload Portability
TCO assessment involves identifying the market requirements that are gaining momentum. It is necessary to predict the computing resources you will need in the future. Hence it is a good idea to select a flexible hybrid cloud solution (in case you need to scale up at a later stage). It ensures you are not locked into a specific data platform with limited data handling capabilities, improving your TCO position in the long run.
2 Maximize Existing Investments
When you consider embracing new technologies and procedures for expanding your IT infrastructure, keep your existing investments at a reasonable level. The goal should be to opt for network solutions that maximize agility. A Hybrid cloud investment will help minimize future costs by providing increased business agility and supporting enterprise growth and transformation.
3 Optimize Cloud Storage
A hybrid cloud enables you to store data in the cloud, which is a great way to reduce on-premise hardware usage and costs. Moreover, it maintains control over the ever-increasing volume of data from various sources and optimizes and distributes the workloads effectively to improve data storage.
4 Leverage Automation
When you do not attend to your cloud in capabilities, the costs increase. By utilizing automation features of hybrid cloud management, you can immediately fix misconfigurations and mitigate them as soon as possible. In addition, hybrid cloud automation reduces costs related to manual operations and enables your IT teams to focus on other crucial tasks.
5 Use Cloud Backup and Disaster Recovery
A hybrid cloud backup solution enables enterprises to economically store critical data off-site in a cloud provider’s facility. So, if a business application fails at the primary site, enterprises can rapidly recover the data in the cloud to reduce fail over site TCO. Disaster recovery features of the hybrid cloud can help you get your site back up in minutes, alongside other benefits like storage optimization, data protection, and better manageability.
Experience The Benefits of a Hybrid Cloud Solution Today!
Hybrid cloud provides a host of cost-saving benefits and optimizes how your enterprise operates, ensuring the latest industry best practices are adopted to reduce overall TCO.
Wipro Boundaryless Enterprise (BLE)-Hybrid Cloud solution powered by VMware and Google Cloud brings people and technology together by providing a consistent roadmap for increasing business agility and reducing total cost of ownership. For clients who want to modernize their existing IT infrastructure, our services will accelerate your journey to the cloud- but whether to host on public cloud, private cloud, on-premise, or a combination- we provide you with a flexible choice!
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