Too many businesses adopt a “set and forget” approach to cloud and WAN infrastructure, wasting on average 35% of cloud spend.

Around 75% of Australian organisations are now using multiple cloud platforms, with Australian investment in cloud storage and systems projected to increase 23% for 2020 year-on-year.

However, a lot of this investment is wasted on cloud and network infrastructure that isn’t optimised for current business needs, leading to ever-increasing bills and diminishing ROI. Here are some of the common pitfalls, plus our solutions to get these costs under control.

How Businesses are Overpaying for Cloud

Every organisation has different requirements in terms of wide area network (WAN) infrastructure, but there are a couple of major reasons that organisations are typically paying too much for cloud.

Over-Provisioning of Resources

One of the most common causes of wasted spend in the cloud is over-provisioning.

This includes investing in cloud resources that are simply not being used and aren’t setup to be decommissioned automatically, which unnecessarily adds to ongoing costs for exactly zero ROI.

Similarly, businesses are often over-provisioned for resource sizes due to an inadequate understanding of their workload needs, which also contributes to cloud waste. There can also be resources that are required only on a case-to-case basis – such as development, testing, QA and staging environments – but businesses are paying for these around-the-clock.

Poor Visibility on Spend

Many businesses don’t have an easy way to track or predict their actual cloud costs before the bill arrives. This is obviously a recipe for “bill shock” when cloud spend is out of control and poorly understood.

This can arise due to the complex, variable pricing structures of some public cloud offerings, and/or inadequate visibility into how cloud resources are being used (or not used) over time, where costs are being accrued, and what’s driving cost increases.

Excessive Network Infrastructure Costs

Coming down from the cloud, WAN infrastructure is also a common source of excess costs.

We see many businesses that have had a static, “set and forget” approach to network architecture, meaning they’re often running older, less secure technology when there’s newer, lower-cost alternatives that do a better job.

A good example of this is SD-WAN, which separates networking hardware from its control mechanism. This gives businesses greater flexibility to switch carriers across each connectivity type (e.g. broadband internet, MPLS, 4G and 5G) to keep the bandwidth mix more cost-effective, while improving network performance and scalability. It can also help shift some network costs from CapEx to OpEx.

Optimising Cloud and Network Spend

For far too many businesses, cloud and network costs are out of control and increasing month-on-month with diminishing ROI. This is why we offer Cloud Control and Network Analysis.

Cloud Control and Network Analysis by Forsythes Technology are free services that analyse your cloud and/or network architecture, usage and requirements, to identify how you can achieve lower costs while maintaining or improving service level performance.

Our specialist cloud and network architects work with SD-WAN, traditional networks, and public, private and hybrid cloud, including our own Forsythes Cloud. With the right cloud and network architecture, we help our clients achieve cost savings of up to 60%.

Our cloud spend was previously around $12,500/mth. Forsythes Technology has helped us reduce this by over $5,000/mth, achieving a 43% cost saving.

John Babic – BMT Tax Depreciation

Provided fast and free of charge, these services will make recommendations to optimise your cloud and/or network architecture and spend, and improve your ROI.