Public Clouds: A Transparent Analysis

According to Gartner’s COVID-19 Resource Center, COVID-19 represents a classic business disruption. Many businesses are experiencing the negative impacts of the virus—forcing them to close shop or institute work from home policies. While business continuity and public cloud technology will not resolve every major problem for each business, there are private cloud companies like TetherView that can solve for 90% of the problems companies are experiencing.

Now especially, companies are drawn to public clouds because of their sheer volume of services available, as well as a substantial amount of brand recognition. However, that doesn’t mean a public cloud is an ideal or cost-effective solution. Public clouds are often more expensive than a custom private cloud—even maintaining an on-premises infrastructure is less expensive than a public cloud .

Consumption-Based Billing

Public clouds largely use consumption-based billing. Organizational inbound and outbound bandwidth requirements dictate a substantial portion of the price, and the approach isn’t always cost-efficient nor is it predictable.

With the on-demand pricing model, businesses are charged for various cloud services by the hour. Since usage can fluctuate dramatically (especially now that 2/3rds of the workforce is working from home), anticipating the final cost is practically impossible. Ensuring that an organizational IT spend can stay within a set budget is incredibly challenging as it turns what is traditionally a fixed cost into a variable one. In addition, now that most companies are working from home, instituting additional security and compliance measures will come at a higher cost per desktop (per hour).

The pricing model for public clouds itself is shockingly hard to navigate. For IT cost predictability, a public cloud service isn’t likely to deliver.

Complexity Comes with a Price Tag

Even if an organization can get the service costs under control, ensuring they will remain predictable and relatively affordable over time is virtually impossible. Generally, public clouds come with unanticipated expenses—like enabling additional security measures, compliance structures or just general functionality. Complexity nearly always comes with a surprise price tag. In this case, it’s the cost of finding someone who can work with and fine-tune a public cloud infrastructure specifically to meet the needs of your business.

When a company needs to hire a cloud expert, it’s like tracking down a rocket scientist. There aren’t many of them in the labor pool, so it will cost a premium to secure top-notch talent. In most cases, firms end up having to default to someone with a lower skill level; meaning they might not get the most out of the cloud services or worse yet, they authorize someone who doesn’t know how to properly securitize data.

Public clouds are recognized for their complexity. The service provides businesses with a significant amount of potential solutions, but it also means that not just anyone can make the most of it. Without proprietary education or outside consulting, an internal corporate IT team isn’t going to be able to use the cloud effectively.

When a critical system is complex, the ability to be agile and nimble is lost. In other words, even if your company was in a public cloud prior to the pandemic—chances are that if it was managed by a group of expert generalists, you are probably not getting the most out of your services and/or your business is being over charged.

Technical infrastructure changes are a monumental undertaking, requiring hard-to-find specialists who command high salaries. Often, this makes a public cloud inconvenient and unaffordable for many smaller to mid-sized companies. Additionally, if an organization falls under strict compliance regulations, the whole process of moving to a public cloud becomes even more difficult. Take a brief look at any public cloud compliance overview and determine whether it is possible to achieve a level of required compliance internally. More than likely, this will be an additional expense and will stem from third-party audit software, implementation consultants and cyber experts. Infrastructure compliance can easily take up to 20% of the overall IT budget.

A Truly Simple Private Cloud

Throughout this pandemic TetherView has enabled companies to comprehensively securitize their work from home teams—without additional costs, headaches or red tape. TetherView’s private cloud service is designed to be an all-encompassing IT solution, allowing businesses to coordinate their IT resources to genuine needs. Each solution is completely customized; providing firms with a private cloud that meets the most stringent security and compliance standards around.

Everything is included in TetherView’s flat-fee pricing model. Companies get top-tier support in an easy-to-manage solution. One of the main benefits of working with TetherView, is that customers always maintain full control over their IT environment, while having a transparent view into their systems that can be lacking in other solutions. In other words, if you want to see log reports, download reports, activity reports, etc—TetherView provides that level of transparency.

Over the last few weeks, businesses needed to scale quickly. TetherView’s cloud does with ease, and the ability to anticipate IT costs will never change. TetherView always provides access to robust IT products and leading infrastructure without breaking their customers’ banks.

TetherView believes that simplicity should always be the name of the game, especially in these trying times.

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Michael Abboud
michael@tetherview.com