It Cost Optimization And Cloud Solutions At Gartner Symposium

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However, the narrative surrounding cloud being cheaper than on-premises solutions is changing. Cloud technology provides the protection of rapid data recovery and vast data centers able to failover in the event of outages. Moving to the cloud lets your business move more quickly than competitors. Managing an on-premises data center or software application, you are responsible for keeping everything up to date. When evaluating an upcoming refresh cycle, you may find it significantly less expensive and beneficial to transition to cloud.

cloud cost management gartner

As big as the cloud market has become, there is massive scope for expansion. Especially when you consider Gartneris projecting worldwide IT spending of $3.79 trillion in 2019. Be on the lookout and assess both broad and deep CMP functionality requirements.

Instead of installing the software application on your local device, you access the provider’s application using the web or an API. Integration is another aspect to look for in a cloud management platform. The platform, for example, needs to support access to IT systems, billing systems, reporting and monitoring tools etc. One of the big areas of interest at the conference was IT cost optimization, which is also one of QSM’s main areas of expertise. The presentation was well-attended and a meet and greet session followed where our QSM team, consisting of Ethan Avery, Richard Pelaez, Greta Moen, and I, provided solution demonstrations and answered questions.

With the cloud provider responsible for any upgrades should those compliance requirements change. Leading the way is Microsoft, with a 17% market share and impressive annual growth of 34%. Microsoft continues to gain market share, primarily due to its dominance in the high- growth collaboration segment.

Alexander the Great ordered his men to burn their ships upon landing on the shores of Persia. Only those that are all in for the journey ahead will achieve the highest ratios of value-to-spend. And rightsizing your servers can ensure that you’re getting the most out of your cloud licenses.

Google Cloud Platform Network: Premium Tier Vs Standard Tier

The tool allows you to select basic specifications such as CPU power, RAM, storage requirements, and operating systems. Using this base level configuration, it compares and contrasts the providers’ different services with a price per month. A lack of quality and inconsistent reporting can have a huge impact on the success of your business. Cloud-based systems help prevent this, storing all documents in one place in a single format. These collaborative systems offer backup and version control, giving your employees access to the same information whilst maintaining data accuracy and consistency. Cloud computing keeps your employees in the loop, wherever they are in the world.

cloud cost management gartner

Unlike IaaS and SaaS, the PaaS market is said to be near impossible to dominate. Incredibly, Gartner reports only 10 of the existing 360 PaaS vendors are able to offer 10 or more of the 22 services outlined in the report. Driving the majority of vendors to focus on a single fit-for-purpose PaaS offering over a multipurpose solution.

Analyst Reports

We’ve already taken a deep dive into comparing AWS and Google Cloud Platformhelping you to understand the range of IaaS and PaaS products and services available. Microsoft also has a handy guide for AWS to Azure services comparison, to help you compare their services like for like. Leading vendors like AWS, Azure, and Google Cloud Platform offer hundreds of different services. Each with its own pricing schedule and thousands of configuration options that change the price. One of the original motivating factors to move to the cloud has been reducing costs.

When a vendor announces an end-of-life event, it’s an opportunity for you to consider alternative solutions. Increasingly, businesses are using these naturally occurring events to move from on-premises to cloud-based solutions. In 2019, Microsoft looks set to claim AWS market share, reporting H1 YoY growth of 70% in Azure revenues. Overall, Microsoft’s Q1and Q2combined commercial cloud business revenue is now reported to be $20.6 billion, a 40% growth on H1 2018.

cloud cost management gartner

They have a huge base of existing on-premises consumers which they will be looking to convert to SaaS-based subscription models. Anticipate needing to devote time and money against out-of-the-box integration coverage. In view of that observation, Gartner said enterprises should look to “Combine CMP functionality with cloud-native tooling, choosing where a CMP makes sense versus where it doesn’t .” Oracle’s score for required criteria grew from 74% to 90%, including scores of 100% for Compute, Storage, Networking, and Software Infrastructure, such as Database as a Service and Functions offerings. Kinsta was one of the first managed WordPress Hosting companies to exclusively use GCP to power its entire WordPress hosting infrastructure , and now many competitors have followed suit.

A move to the cloud will give you the flexibility to rapidly increase and decrease compute. Increasing cost bases and a range of other limiting factors present you the opportunity to make the transition to a more cost-effective cloud-based solution. If you’re in this situation, migrating these applications and technologies to the cloud might be the ideal solution.

Report: Cloud Management Platforms Focus On Security, Cost Management

Model the potential pricing against your future cloud deployment plans and compare against competitive offerings. The 5-Star rating is awarded to an exclusive group of companies that offer solution providers the best of the best. Gartner Market Guides define a market and explains what clients can expect it to do in the short term. It outlines attributes of representative vendors that are providing offerings in the market to give further insight into the market itself.

The Cloud 100 celebrates the coolest cloud computing players providing cloud infrastructure, monitoring and management, security, software and storage. Some organizations have tried to implement cost management solutions from Densify, Apptio’s Cloudability, Cloud Health, Flexera, AWS or Azure. These technologies decrypt billing trends across hybrid or multicloud configurations and recommend where to eliminate inactive storage, change instance types or opt for lower-cost clouds and regions. However, they are only point solutions and fail to align the business objective, plans, P&L and processes. Featured Resource Unified Support Services for Enterprise Software Rimini Street, Inc. is the leader in third-party enterprise software support and strategic services to organizations around the world. Without huge investment, the right cloud provider can quickly offer powerful compute and storage capabilities with built-in analytics to process, analyze, and find value in your data.

Support Services

By supporting mobile access, cloud technology gives your employees the ability to securely access your business’s systems and data via their mobile device. Supporting remote working and keeping your employees connected and productive, even when they are on the move. In 2019, the PaaS market is forecast to generate in excess of $20 billion according to Gartner. The market continues to grow with more than 360 vendors and 550 cloud platform services across 22 categories. The most recent data from Gartneron the worldwide Infrastructure as a Service market shows annual revenues of $32.4 billion.

  • In view of that observation, Gartner said enterprises should look to “Combine CMP functionality with cloud-native tooling, choosing where a CMP makes sense versus where it doesn’t .”
  • It’s not surprising when you think about how many benefits come with cloud computing.
  • The business must be able to track how money is spent on cloud , plan how much money to spend in the future and secure payment from various business units for cloud services provided .
  • And when calculating costs, always make sure you consider the indirect cost benefits from switching to a cloud model.
  • With all the challenges of a global pandemic, our teams continued to deliver on our product vision, and I’m both amazed and sincerely grateful.

And when calculating costs, always make sure you consider the indirect cost benefits from switching to a cloud model. Cloud computing gives you the ability to rapidly scale your compute and storage requirements to meet business demands. Through a pay-as-you-go model, you can better control your costs, scaling up or down to meet seasonal demand. Cloud computing has grown into a vast and complex ecosystem of technologies, products, and services. Giving rise to a multi-billion dollar economy where many cloud providers compete for an ever-expanding cloud market share.

Offering a smoother transition with a consistent solution able to seamlessly accommodate new geographies and employees moving forward. The for-pay report is offered in a licensed-for-distribution PDF available for download, upon providing registration information, by at least one of the showcased vendors. Cloud Cost Management Certification by ServiceNow signifies that Snow for ServiceNow® Express has successfully completed a set of defined tests focused on integration, interoperability, security and performance. The certification also ensures that best practices are used in the design and implementation of the application.

Hybrid cloud services must be managed in accordance with organization policies. Governance capabilities in CMP enable an administrator to manage critical business processes and automate tasks using defined rules. As software vendors focus investments on new cloud platforms, current, robust licensed applications receive less investment and fewer resources dedicated to support.

Calculating The Cost Of Cloud For Your Business

A key factor in the success of your business is ensuring your technologies remain operational. No matter how in control you are of business processes, your systems will eventually let you down. In today’s market, even limited downtimes can impact significantly on your productivity, revenue, and brand reputation. A few examples include scaling your compute to changing demands, reducing resources spent managing hardware and software, or gaining greater insight to your data. Moving to cloud allows you to choose the services that are already compliant.

Solutions

Focusing your IT team on projects that create revenue, rather than locked in a server room managing on-premises infrastructure. In fact, a Verizon study showed 77% of businesses feel cloud technology gives them an advantage over competitors. For a more detailed look within the public cloud market we must turn to alternative research and reports. It’s no surprise then, that Gartner received a 50% increase in inquiries related to third-party support in 2019 compared to the same period in 2018.

According to Gartner, IBM owns a 1.8% market share with annual revenues of $577 million and a growth of 24.% in 2018. Renowned primarily for its hybrid cloud services, IBM is set to shake up the market in 2019 having acquired fellow IaaS provider Red Hat for $34 billion. Cloud Management Platform provides cloud consumer a way to manage the cloud computing products and services across multiple cloud infrastructures, including both public and private cloud. Gartner says Cloud Management Platforms are integrated products that provide for the management of public, private and hybrid cloud environments. Based on projections from the IDC, worldwide spending on public cloud services and infrastructure is forecast to double over the next five years. It’s not surprising when you think about how many benefits come with cloud computing.

The broader the set of capabilities a CMP covers, the higher the risk of providing shallow functionality in each capability. Support for Migration including shifting workload from private to public cloud. In IaaS and PaaS scenarios, it’s important to keep track of how much CPU and memory you’re using. As with a software license, use what you have, and make sure you have it set-up for your business needs. Having too many instances or making them too big can cost you significantly in the long term.

Achieving cost savings for your business depends on the cloud pricing model you select and how efficiently you operate your cloud services. With the current state of the environment, sustainability has become a top priority for businesses. As leading cloud technology providers champion the use of renewable energy in their data centers. SaaS is an offering of cloud computing where the provider gives you access to their cloud-based software.

PaaS is an offering of cloud computing where the provider gives you access to a cloud environment in which to develop, manage, and host applications. You will have access to a range of tools through the platform to support testing and development. Realize that more than 90 vendors offer cloud management functionality . This wide diversity makes it tough to map your requirements to the right product. You need to define your requirements and select only products that meet your needs.

The significant savings from third-party support allows customers to fund digital transformation projects that they may be unable to deliver on while under vendor support. Customers can potentially move more quickly to innovate by removing the overhead and burden of vendor support, as well forced migration projects. Many businesses have contracts with private data centers, hardware, and software providers that must be periodically renewed. Much like an end-of-life event, this presents you with an opportunity to reconsider how you deploy specific services and solutions.

For the CMP market in general, Gartner forecasts that by 2025, the percentage of enterprises using multifaceted cloud governance tools will be more than 70 percent, compared to less than 10 percent in 2020. The firm sees the CMP space as part of the larger cloud management platform and tools market, which is expected to continue growing at an estimated 20 percent compound annual growth rate through 2022. “This growth https://globalcloudteam.com/ is, and will continue to be, hindered by more focused tools around key use cases and competition from native services,” Gartner said. Granular view of cloud usage via interactive cost analytics dashboards and holistic recommendations helps to optimize the cloud cost. With these foundational pieces in place, cloud cost management can become a core cloud capability that delivers tangible value to the business.

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