Optimizing Cloud Costs

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Why Are Organizations Opting For A Multi-Cloud Approach?

Many businesses today opt for multicloud solution, driven by diverse needs and challenges.

When an enterprise operates across various global regions, it often finds that a single public cloud provider cannot fully address its complex requirements. For such organizations, adopting a multicloud approach becomes an evident choice.
Indeed, many businesses that incorporate public cloud services typically engage with several providers, a practice known as multicloud computing. This is a specific approach within the wider framework of hybrid cloud computing. A Gartner survey targeting public cloud users revealed that 81% of participants manage projects with at least two different providers. Michael Warrilow, VP Analyst at Gartner, notes that the prevalence of large vendors in the public cloud service sphere primarily motivates enterprises to opt for multiple providers.

Warrilow explains, “The drive towards a multicloud strategy primarily stems from organizations wanting to prevent vendor dependency and to leverage the best solutions available in the market.” He anticipates that the majority of substantial organizations will intentionally adopt this multicloud approach. Gartner forecasts that the top 10 public cloud providers will secure, at the very least, half of the overall public cloud market share through 2023 and possibly beyond.

A woman holding a tablet with the multi-cloud concept.

Understand the Factors that drive decisions

When evaluating multi-cloud computing, businesses typically consider three key areas:

  • Sourcing: Businesses aim to enhance flexibility and reduce reliance on a single vendor through strategic sourcing. This approach is influenced by multiple factors, such as service availability, performance metrics, data residency, compliance with regulatory mandates, and labor expenses.
  • Architecture: In today’s digital landscape, modern applications are inherently designed to be modular, allowing them to operate across various cloud environments or to utilize services from multiple cloud providers simultaneously.
  • Governance: Companies prioritize establishing a unified management framework for their IT systems to maintain operational oversight. This includes standardizing policies, procedures, and practices, and implementing shared tools that facilitate cost management and optimization across several cloud platforms.

Customers often highlight the advantages of multicloud strategies, such as enhanced disaster recovery capabilities and simplified processes for migrating specific data and applications.

Hologram that shows a cloud

What are the Benefits of Selecting a Sole provider?

The adoption of multicloud strategies by organizations is primarily driven by the need for operational agility, avoidance of vendor lock-in, and the ability to leverage the best available cloud solutions across different providers. This approach is further justified by the desire to meet diverse regulatory requirements, optimize costs, and ensure robust disaster recovery and easier data migration. While the shift to multicloud environments presents a complex set of challenges, such as managing multiple service agreements and integrating disparate systems, the benefits often outweigh the complexities for businesses operating on a global scale. This strategic choice not only allows companies to maximize the strengths of each cloud provider but also fosters a more resilient and flexible IT infrastructure.

Conclusion

The adoption of multi-cloud strategies by organizations is primarily driven by the need for operational agility, avoidance of vendor lock-in, and the ability to leverage the best available cloud solutions across different providers. This approach is further justified by the desire to meet diverse regulatory requirements, optimize costs, and ensure robust disaster recovery and easier data migration. While the shift to multi-cloud environments presents a complex set of challenges, such as managing multiple service agreements and integrating disparate systems, the benefits often outweigh the complexities for businesses operating on a global scale. This strategic choice not only allows companies to maximize the strengths of each cloud provider but also fosters a more resilient and flexible IT infrastructure.