IT Brief New Zealand logo
Technology news for New Zealand's largest enterprises
Story image

Worried about unpredictable multi-cloud spending? Get yourself a partner

By Contributor
Thu 25 Nov 2021

By Dell Technologies Australia & New Zealand, senior director of technology, Adrian Iannessa.

When you adopt a cloud-first policy, you expect speed, agility, and innovation. You don’t expect to pay twice as much as running workloads in your own data center. That wouldn’t be a selling point for any organisation looking to gain cloud flexibility whilst also lowering IT costs. Unfortunately, this scenario is more common than many would like to think. 

The advantage of the cloud model is that it allows organisations to scale too quickly, but as they grow and the rate of scaling slows, it may become more complicated. The cost savings that were evident in the early days of adoption get murkier, especially if the focus is on new features and not optimising infrastructure.

There’s a paradox for start-up organisations that goes: “You’re crazy if you don’t start in the cloud; you’re crazy if you stay on it”, and whilst it’s a different scenario for established organisations, the same principle applies. As IT is increasingly becoming the business, the cost of public cloud is becoming a material expense line for many organisations. It needs to be a key consideration in a cloud strategy.

For most organisations, the solution is to make annual or multi-year cloud contract commitments. For a large upfront commitment, the hyper-scale public cloud providers will provide deep discounts off their cloud infrastructure retail pricing.

While this can appear to reduce the costs of using the public cloud, it doesn’t take the risk out of paying far more than what you thought you bargained for. Most organisations with pre-committed cloud spending end up consuming less than anticipated, resulting in the forfeiture of their unused balance to the cloud provider.

Unfortunately, it doesn’t get much better for other organisations that conservatively estimate their cloud resource consumption needs. They often undersize their cloud infrastructure requirements by up to 20% (with some underestimating as much as two times the actual usage), resulting in overage fees that are calculated at full fare cloud pricing (10 to 12 times the on-premises cost).

In return for the business speed that public cloud solutions deliver, organisations sometimes put themselves at a significant financial disadvantage. Often when they make this realisation, the response is repatriation of workloads to private cloud, which can be challenging if it was not planned for to begin with. But it doesn’t have to be this way. 

Balancing the cloud mix

With the right hybrid cloud strategy, organisations can get all the benefits of public cloud but without the risk of unpredictable cloud spending. After all, hybrid cloud can be similar to an orchestra with different instruments, coming in and out of the song when needed. However, they still need the conductor to know when to cue in the string section. Enter the multi-cloud managed service provider. 

They can provide organisations with the best of private and public cloud flexibility, agility and efficiency – without the associated financial risks. They also bring expertise that could help efficiently accelerate business outcomes.

These multi-cloud managed service providers have data center co-location facilities adjacent to the cloud, which means they have high-speed connections to the major public cloud providers, allowing for speedy access to the cloud.

Navigating through clouds

Managed service providers can design a strategy that finds the best distribution of workloads across public and private cloud infrastructure, while enhancing efficiencies. For example, they can provide guidance on leveraging lower-cost cloud infrastructure options for non-production workloads, like application development.

On top of the savings that come with having the right cloud mix, some multi-cloud managed service providers can eliminate cloud egress fees. This can ultimately deliver substantial savings, especially if there is a need to move data in and out of the cloud frequently.

And while public cloud outages are rare events, a wide-scale outage could have a major impact on service availability. Cloud service providers can help devise a strategy to reduce risk by advising how to best distribute workloads across multiple public cloud providers.

Using a multi-cloud managed service provider can increase workload mobility. This means data and application services in private cloud environments can be easily migrated to the public cloud and vice versa – giving organisations more control over how they manage their applications and data and avoiding cloud lock-in.

It leads to more predictable costs and identifies where the public cloud can be leveraged in tandem with private cloud infrastructure to deliver optimal price and performance.

Finally, working with a partner is an effective way to access scarce IT talent. Research shows that the ICT workforce is growing four times faster than the wider workforce, driving demand for 60,000 more tech workers each year. Working with a partner can bring the right skills in cloud, cyber-resiliency, cloud data protection, storage and emerging technologies into an organisation as needed.

Partnering with a managed services provider is a smart move since it enables organisations to spend less time on IT infrastructure and more time on innovation. In addition, it will allow you to get the best of private and multi-cloud agility with data services that deliver hosting, cloud connectivity, storage, and data protection platforms as fully managed services without the risk of public cloud-induced bill shock.

Related stories
Top stories
Story image
Tech job moves
Tech job moves - Cohesity, Equinix, IDC, Proofpoint & Xero
We round up all job appointments from July 29 - August 5, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
DCI Data Centers breaks ground on AKL02 center
DCI Data Centers has commenced construction on Auckland's largest data center.
Story image
10 Minute IT Jams
Video: 10 Minute IT Jams - An update from Heidrick & Struggles
Graham Kittle joins us today to discuss how the company is helping organisations bring about change within their business.
Story image
Exclusive: UKG brings a people focused approach to workforce management
Managing an effective and efficient workforce is the crux of any business operation, and in today's climate, it's more than just work employers need to be aware of.
Story image
Exclusive: Inde provides innovative solutions across the tech sector
Inde likes to call its approach the 'power of the collective', which essentially means that if a client approaches the company with a problem, they'll get the team's collective insight to help drive the best outcome.
Story image
Fortinet reports second quarter 2022 financial results
“We delivered strong revenue and billings growth in the second quarter driven by an increase in the number of transactions larger than one million dollars."
Story image
MyRepublic unveils 'choose the speed you need' mobile plans
Broadband provider MyRepublic has announced the details of its new 'choose the speed you need' mobile plans, designed for New Zealanders. 
Story image
SaaS sector in NZ thriving as a result of trans -Tasman partnerships
New Zealand's Software-as-a-Service (SaaS) sector is on track to be the biggest contributor to GDP this year, generating more than NZD$20 billion for the New Zealand economy.
Story image
Data Protection
CyberRes partners with Google Cloud in lead up to BigQuery release
CyberRes, a Micro Focus line of business, has announced a partnership with Google Cloud to support the upcoming release of BigQuery remote functions.
Story image
Financial results
Facebook NZ financial report reveals notable revenue increase
Revenue from contracts with customers increased by $NZD 1,089,292 compared to 2020's figures.
Story image
Remote Working
Four-day week: Perceptions across Asia Pacific and Japan
Workers across APJ want to be empowered to do their best work, wherever and whenever they want.
Story image
Why enhancing bot protection for web and API endpoints matters
The trouble with bots is that they aren’t all bad. Unfortunately, this can make it challenging to detect malicious bots that find their way into your system and threaten your business.
Story image
10 Minute IT Jams
Video: 10 Minute IT Jams - An update from Talend
Stu Garrow joins us today to discuss the company’s key solutions, and how they can help organisations thrive in the data management space.
Story image
Robotic Process Automation / RPA
Gartner anticipates RPA software revenue of US$2.9 billion
Gartner predicts global robotic process automation (RPA) software revenue to reach US$2.9 billion in 2022, an increase of 19.5% from 2021.
Story image
Microsoft unveils two new security products to help reduce attack surfaces
The products are set to give companies deeper insights into threat actor activity and help them successfully navigate the changing threat landscape.
Story image
Why security needs to shape your journey to the cloud
It's estimated that 80% of workloads could be in the cloud in the next few years. How can you make all that data secure?
Story image
Why is MACH architecture a new big thing in the tech world?
More and more global enterprises are considering replacing the monolithic tech stack with the best-of-breed composable stack that enables greater business agility.
Story image
SOTI research explores professional's thoughts on digitisation in the healthcare sector
Interconnectivity, automation and data management were the three key trends highlighted in the report as integral parts of successful medical technology implementation.
Story image
Why the Metaverse could be the key to enhancing the healthcare sector
The experts at Accenture understand that the programmable world is about building the next version of the physical world in healthcare, understanding complex layers in order to fully utilise technology to its maximum effect.
Story image
Qualys develops EASM capabilities for Cloud Platform
"Qualys unique approach to EASM is integrating the internal and external asset data from CyberSecurity Attack Management with its VMDR solution into a single view."
Story image
Hybrid Cloud
The essential guide to digital transformation by SolarWinds
Digital transformation is a buzzword thrown around all the time by companies, but what does it actually mean and why is it important? SolarWinds breaks it down.
Register now for the Sydney Cloud & Datacenter Convention 2022 and learn about topics ranging from digital transformation to data center sustainability.
Link image
Story image
FirstWave responds to SMB demand for better cybersecurity
FirstWave developed the CyberCision Open Security Management Platform to respond to SMBs 'urgent' need for comprehensive cyber protection.
Story image
Viavi updates Observer platform to simplify cloud monitoring
Version 18.8 simplifies cloud monitoring with data centre-like visibility, bringing two key capabilities to cloud-based applications and deployments.
AWS Marketplace
Learn how security orchestration, automation, and response (SOAR) enhances your security strategy.
Link image
Story image
Veeam named Leader in enterprise backup and recovery
"We believe our innovation and ability to execute validates our solid standing as the #1 trusted provider of modern data protection."
Story image
Google NZ numbers show strong comprehensive profit increase
The latest financial report from Google New Zealand Limited has revealed an increase in total comprehensive profit of over $NZD 7 million.
Story image
Tablets & laptops
Chromebook and tablet shipments see another rapid decline for the year
According to research from Canalys PC Analysis, Chromebook and tablet shipments have fallen for the fourth quarter in a row for Q2 of 2022.
Story image
ManageEngine unveils SaaS availability of Analytics Plus
ManageEngine's Analytics Plus is now available as a software as a service (SaaS) offering, enabling users to set up a completely functional and integrated analytics platform anywhere in under a minute.
Story image
Identity and Access Management
Pitney Bowes launches rebranded management offering in A/NZ
Pitney Bowes has launched Smart Access Management (SAM), its rebranded digital visitor and contractor management offering in Australia and New Zealand.
Story image
Data center
Macquarie Asset Management acquires stake in ST Telemedias VIRTUS Data Centres
"We will further strengthen VIRTUS' focus on sustainability by backing investment in its technology and enhancing the lifecycle management of its equipment."
Story image
Security gaps in APIs plague organisations - study
Together, the findings highlight that existing solutions and API security tactics focused on shift-left strategies are failing to adequately protect APIs.
Story image
Four benefits companies can realise by transitioning to S/4HANA early
Although there is time before organisations are required to transition to a cloud-based solution, such as S/4HANA, it is beneficial to transition now. Waiting too long could complicate the process.
Story image
Data Protection
Video: 10 Minute IT Jams - An update from SearchInform
Alexey Pinchuk joins us today to discuss the role the company plays in helping organisations manage risk and provide better security outcomes.
Story image
NOVATION releases cloud-based solution to maximise value of data
NOVATION has announced the release of DataVio, its cloud-based solution for helping businesses automate the processing and extraction of data.
Story image
Enterprise Resource Planning / ERP
Why the right ERP (and partner) is crucial to an innovative and successful business
Enterprise Resource Planning (ERP) is a foundational step to ensuring a robust business model; here's why choosing the right one could be vital to ensuring long-term success and innovative results.
Story image
Hazelcast launches beta release of new serverless offering
Hazelcast Viridian Serverless speeds up app development, simplifies provisioning, and enables integration of real-time data into applications.
Story image
OfficeMax NZ sees significant growth through Seismic partnership
OfficeMax New Zealand has announced it has seen a significant increase in customer and sales confidence as a result of Seismic’s digital enablement software.
Story image
Ivanti and SentinelOne partner on patch management solution
Ivanti and SentinelOne will integrate their technologies Ivanti Neurons for Patch Management and SentinelOne's Singularity XDR platform.
Story image
More than a fifth of cybersecurity teams ban the use of public WiFi
Verizon’s fifth annual Mobile Security Index report has revealed a continued rise in significant cyberattacks in the last year involving a mobile/IoT device.
Story image
Chorus announces Hyperfibre sponsorship deal with NZ Esports
Chorus has put its support behind New Zealand's Esports community with a newly announced three-year Hyperfibre sponsorship deal with NZ Esports.
Story image
Visa launches Eco Benefits solutions in Australia and NZ
Eco Benefits is a suite of sustainability-focused solutions that will help Visa cardholders better understand the environmental impact of their payments.
Story image
2degrees unveils eSIM functionality for selected devices
2degrees has enabled eSIM functionality to work with a variety of Apple, Samsung and Oppo devices, including a range of iPads.
Story image
Gartner names Rubrik Leader in 2022 Magic Quadrant
Rubrik has been positioned by Gartner as a Leader in the 2022 Magic Quadrant for Enterprise Backup and Recovery Software Solutions.