If you want cost reduction, the public clouds provide that. We’ve seen is cost reduction – what I call the CFO Play – of 30-40% by transferring owned physical to virtualized, public cloud infrastructure. Do that and the CFO is happy.
According to AWS the real benefits (and savings) come from optimizing workloads to run on their infrastructure – rearchitecting, refactoring, redesigning applications to be cloud optimized or cloud native.
A client of one of our clients needed a server to deploy a solution we were building. It took literally months from the beginning of the procurement process to the delivery, installation and deployment….months. This company is big, in a conservative, risk-averse, slow-moving (technology-wise) industry. The applications to be implemented were important enough, and the need to upgrade them and the infrastructure was evident.
How many companies (and maybe one day this one) will be, or have been, disrupted by those who’ve jumped to the Public Clouds and by doing that, leave the competition at the starting gate because the cloud gives them 2 huge advantages…speed and agility. Wait months for purchase and delivery of a physical server? No chance if your on the cloud – just spin up an instance and in 5 minutes you’re up and running.
One of the constants about technology is that it will change and needs to change (upgrade, renew, replace, innovate). Do that faster, with less expense and time (= less cost). Innovate, get to market faster and we reap the rewards (= more revenues).
That’s a key thing… not to be blinded by cost savings and look at the market opportunities that the Cloud opens – that can be huge. Getting to market better, faster and cheaper, spin up the instances you need without worrying about procuring expensive infrastructure or waiting for it to be purchased, installed, setup and deployed. Or forget about the infrastructure and build, test on Serverless instances can be more appealing. No need to worry about the infrastructure – define the Serverless function and let it roll on a true pay as you use model.
And the impact of deploying applications in minutes instead of months….?