Why cloud profits are being lost to the ether

Why cloud profits are being lost to the ether

Some organizations aren’t seeing the profits they need from the cloud. We explore the reasons why

Cloud adoption continues to grow at an incredible rate for companies in all industries. The amount of benefits that can be had from the cloud is easily recognizable. However, this continued adoption isn’t always met with the cost savings that are advertised. There are exceptions, of course, like the savings from our CloudKey platform, but let’s dive into some of the reasons companies don’t always see the ROI they wanted.

What happened to my happy little cloud?

Nearly half the companies that set out with cloud adoption in mind are now seeing the cost surpassing what they had expected. There can be several reasons why companies may have a difficult time getting ROI from their cloud computing platforms. Here are some of the common challenges:

Lack of proper planning: Often, companies rush to move their applications and data to the cloud without a proper plan. This can result in cloud deployments that are not well-suited to the company’s specific needs, leading to inefficiencies and wasted resources.

Poor application architecture: Companies may have legacy applications that are not designed to run efficiently in a cloud environment. Such applications may require significant modifications to run in the cloud, which can be time-consuming and expensive.

Data migration challenges: Migrating large amounts of data to the cloud can be a complex process. Companies may face challenges in transferring data securely and quickly, leading to downtime and lost productivity.

Vendor lock-in: Companies that are heavily invested in a particular cloud vendor may find it difficult to switch to another vendor or to bring their data back in-house. This can limit their flexibility and bargaining power with vendors, leading to higher costs.

Lack of expertise: Cloud computing is a complex field, and companies may not have the necessary expertise in-house to manage their cloud deployments effectively. This can lead to security risks, downtime, and other issues that can impact ROI.

Hidden costs: While cloud computing can offer cost savings, companies may not consider all the costs associated with cloud deployment, such as bandwidth, storage, and licensing fees. These hidden costs can add up over time, leading to lower ROI.

Lack of alignment with business goals: Finally, companies may fail to align their cloud deployments with their overall business goals. Without a clear strategy, it can be difficult to measure ROI and to ensure that cloud computing is delivering the expected benefits.

Stop the cycle

One or all of these could be playing a factor in why a company isn’t reaching the profitability it hoped for from cloud adoption. Does this mean that the cloud is now bunk? Not at all!

Cloud platforms continue to offer the best options for any company to increase productivity, reduce operating costs, sharpen data security, and gain greater access to adaptability. The unfortunate part is that not all cloud platforms are made equal, and the way to maximize their potential varies from organization to organization.

Luckily, there’s an even simpler answer for companies that are struggling. The simple answer is CloudKey. Our CloudKey platform is designed with cost savings in mind by giving you the tools to customize it exactly to what your organization requires. No more overspending on storage you don’t need, or added bells and whistles that sounded good on paper but failed to deliver in the real world. With CloudKey, you get a robust cloud platform, complete with the tools you and your company need to succeed, all at a fixed price according to the platform you create.

To start seeing a better return on your investment, use our CloudKey builder and save big today.