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The Hidden Costs Of Cloud Computing

Cloud computing is the latest buzzword that many businesses and individuals are jumping on. It seems like a convenient, affordable solution to all your computer needs. It’s a great way to store music, photos, and documents online; you can access them from anywhere, as long as you have an Internet connection.

In general, the nature of cloud computing makes it more attractive for batch processing than for interactive applications–that is, applications in which users want quick responses.

Online games, streaming videos, and social networking sites are good examples of interactive applications. They may be hosted on the cloud to take advantage of cost efficiencies but might not perform well due to delays in accessing or updating data.

No matter what your needs are, cloud computing has something for everyone. However, with great convenience comes a high cost.

Many people don’t realize that cloud computing is not free and that many hidden costs are associated with it. Below are some of the hidden costs associated with cloud computing.

Under-Optimized Provisioning

When using shared resources in a public cloud environment, there is no guarantee that you will completely isolate your workload from other customers.

There is a high chance that your virtual machine will share the same physical resources as somebody else on the same machine.

This means that the efficiency of your virtual server is going to be significantly reduced if someone else on the same machine is using up most of the system’s resources.

If this happens regularly and persists for a long time, it can cost thousands of dollars per month in lost CPU cycles and wasted RAM usage.

Difficulties Incompatibility

Cloud computing solutions are designed for different types of users and industries. For example, messaging and collaboration tools like Office 365 migration types are not ideal for financial companies that utilize complex systems for trading securities but don’t require collaboration features.

This difficulty in planning a proper implementation can result in expensive mistakes down the road.

Bandwidth and Technology Costs

If you choose cloud computing, you’ll have to ensure that your organization’s technology infrastructure is up to snuff. All cloud providers will have specific requirements regarding bandwidth and network latency.

If your network is overloaded or slow, your users will be subjected to poor performance and service outages. This is especially true if your organization uses remote workers–many cloud providers limit access to those within the same metropolitan area where their servers are located.

Cloud Storage Costs

Cloud computing services store information on hard drives in remote locations. The data is accessible from anywhere through the Internet, but it’s not as safe as keeping it on your company servers.

Hackers are more likely to access this information because it’s stored outside of your business’s firewall, and it could be subject to data breaches or other security issues. However, with Office 365, you don’t have to worry about hackers as all your files as stored securely. There are also different Office 365 migration types to make it easier for you to move all your data to the cloud.

Lack of Security

There is still a general lack of confidence in storing data in the cloud because of security concerns.

While SaaS providers have done a good job of arming their services with encryption and other safeguards, there have been several high-profile breaches that have brought these issues to light.

Yet, it’s easy to set up a new online service and upload some files—but you have no idea where those files are stored, who can access them, or what else might be done with them.

The providers who offer these services claim to store your data in secure facilities that they control. But each company can change its policies at any time, making your files vulnerable to unexpected disclosure.

And if the company changes hands—whether by acquisition or bankruptcy—your data may be sold off without your knowledge or consent. This further leads to a rise in hidden costs.

It seems that there are several hidden costs associated with running applications in the cloud. The bottom line is that companies that outsource their infrastructure to the cloud have to adjust their accounting practices to account for these extra costs and carefully weigh their options for enterprise computing.

For some businesses, the benefits outweigh the costs, but for others, it’s essential to consider the additional expenses that are bound only to increase as the regularity of usage grows.