Cloud Computing and the Hidden Costs

Grazed from Midsize Insider. Author: Marissa Tejada.

As cloud computing continues to rise in popularity, IT professionals are becoming more concerned with the costs associated with it. A cloud study revealed that while cloud may be a top investment for firms this year, almost 80 percent of CIOs are concerned about the hidden expenses. The results of the study are particularly interesting for midsize firms where IT budgets and cost are important.

Hidden Fees

Research In Action from Compuware Corporation conducted the study to take a closer look at the information infrastructure projects that companies around the world are taking on. Cloud is a leader; however, IT professionals pointed out that costs such as subscription fees, system setup and staff training are often hidden by cloud providers. Additionally, the study pointed out that 35 percent of CIOs believe that costs could increase if there are any cloud implementation problems that require new solutions to be found. The Cloud Times article that featured these results also pointed out that power shortages, heavy traffic and security issues are other factors that could potentially cause costs to hike…

Meanwhile, 81 percent of respondents admitted to using e-commerce to help during cloud migrations. According to the survey, CIOs are concerned also with how end users will react to their services based on mediocre cloud implementations. For example, performance bottlenecks, reduced brand perception and loss of revenue from poor availability are some concerns highlighted…

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