Economics of Multi Cloud

 In Cloud, Corestack, Cost Optimization

Multi cloud provides opportunities as well as challenges for enterprise customers in terms of cost. On one hand, the price reduction led by intense competition helps customers to find the right cloud provider to realise better Total-cost-of-ownership (TCO). On the other hand, certain use cases could lead to increased spending, thereby, increasing pressure on ROI. Navigating the multi cloud landscape requires deeper understanding and the right set of tools to augment the multi cloud strategy. In this post, we will talk about some of the factors that impact the economics of multi cloud and highlight how it can be handled with a right strategy and right set of tools.

Understanding the economics behind multi cloud

As previously noted, one of the advantages of multi cloud lies in the fact that there is regular price reduction due to competition between cloud providers. With a well defined multi cloud strategy, organisations can take advantage of this competition to drive cost efficiencies. This becomes more useful when the application architecture supports easy portability such as Microservices encapsulated in containers or serverless functions. Having this flexibility not only makes it cost efficient but also gives developers more flexibility.

The other advantage with multi cloud economics lies in right sizing the virtual machines (VM) to fit the user needs. Different cloud providers offer different VM sizes. Some even allow you to configure the VM sizes. Having a multi cloud strategy allows your developers to use the right VM sizes, adding to efficient use of resources. The same applies to packaging and pricing of other services. A good multi cloud strategy will help you find the right sized cloud service for your needs.

However, it should be noted that when the applications are run in a high availability scenario across cloud providers, the cost will be high compared to running high availability between availability zones or regions. A high availability architecture across cloud providers will incur high bandwidth costs which might negate some of the cost advantages with multi cloud. It is important for you to do due diligence before setting up high availability architecture across multiple cloud providers.

Another factor that has been a problem for enterprise IT even in the traditional on-premise world becomes a bigger headache in the multi cloud world. VM Sprawl is a problem ever since virtualisation started taking over the enterprise IT. It continues as a problem in the cloud computing era, even with a single cloud provider. But this becomes a bigger problem with multi cloud with VM Sprawl crossing the boundaries of any single cloud provider. Thus, making it difficult to detect and shut down. Also, with cloud consumption spanning multiple services beyond just VM, the problem is magnified. As cloud services sprawl, it becomes critical to shut down unused services to ensure cost efficiencies. IT needs complete visibility and better alerting mechanism to contain cloud service sprawl and cost efficiencies.

CoreStack platform is built to solve some of these challenges with multi cloud. Also, help organisations take advantage of price reductions with cost management and service orchestration features. We recommend you to see the demo of our platform to better appreciate how it can help your organisation navigate multi cloud economics.

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