At the recent EMC World conference in Las Vegas, VMware’s CEO Paul Maritz spoke about how the new cloud delivery model – paying per use – is helping companies to understand how much they spend on cloud services and why.
With the emergence of the cloud and virtualization came promises of lowered costs and massive savings on physical IT infrastructure, but this has not always been the case. Storage and security costs, along with hosting, have been all over the map with little in the way of standardization for companies to measure their spending by. Each cloud provider did things a slightly different way, leading to an “apples to oranges” comparison when trying to gauge exactly what was being spent and where.
Now, as cloud companies expand and standardization of service delivery models occur, businesses can find out just how much they’re paying for each virtual machine provision or store each gigabyte of data. Many cloud companies are finding that one of their quickest growing areas is in cloud assessment service, where a team is sent in to assess just how much a company is spending and on what. Once the numbers are a known quantity, a company can then look at what their provider offers, and compare it to others like Amazon or Microsoft. Armed with knowledge, these companies can ask providers to match the price they are being given, and don’t have to be taken in by the smoke and mirrors that have accompanied most of the cloud computing industry up to this point. With actual metrics and an idea of what is being spent where, companies can give their IT department real and feasible budget limitations, and demand more from their cloud providers.