For some time now, technology has been all about the cloud. Companies all over Australia, from large corporate organisations through to small businesses, have been lured to the public cloud by its perceived range of benefits – being able to work ‘anytime, anywhere’; bandwidth flexibility; automatic updates; security; and ease of data recovery, among others.

But while there’s no doubt that the cloud offers enormous benefits, it’s not essential for every company to go down that route. In fact, there are many companies who have switched to the cloud only to reverse out of it.

The reasons for some organisations’ disenchantment with the cloud? They include unexpected costs (otherwise known as ‘bill shock’), stalled connections, functionality issues, and data sovereignty among others.

Cloud fails

Bill shock is regarded as the major reason for companies to shift from the cloud to an alternative strategy. Examples of issues with bill shock abound:

  • The Commonwealth Bank switched from the public cloud to a private cloud approach after discovering cost-benefits dissipated in relation to scaling. As a spokesperson for the bank told CRN Australia, “Once you get past 1000 servers and you’re running at a high utilisation rate, the economics quickly flip on you and they don’t make sense.”
  • Australian IT company TechnologyOne moved away from AWS and invested in its own NetApp storage after spiralling costs resulting from a lack of flexibility.
  • The managing director of Australian IT firm Commulynx told CRN Australia about a midmarket finance organisation that needed the data back from its hosted email archive. The company was charged US$30,000 for the return of its own data.
  • Australian publisher Bauer Media was caught out financially after discovering its AMS servers were left running constantly, even when not in use.

Consider a hybrid approach

Bill shock tends to result from organisations underestimating or not appreciating the costs involved with migrating to the public cloud. While not every company suffering bill shock is backing out of the cloud, many are reviewing their strategy, and opting for a hybrid approach.

With a hybrid approach, some apps remain on the cloud and other assets are brought back in-house. With more interest in hybrid rather than ‘one-size-fits-all’ solutions, it’s significant that Microsoft has released Azure Stack, a hybrid product enabling customers to decide where various data resides.

How we can help

Here at Correct Solutions, we aim to give you the correct information so you can make the right decision for your business. We will analyse your business requirements so that you’ll know whether your organisation would benefit from migrating to the cloud, or adopting a hybrid approach. So if you’re confused about whether the cloud is the answer to your business needs, do get in touch.