Managing Your Hybrid Cloud

July 14, 2017 / G C Network / Comments Off on Managing Your Hybrid Cloud

The Endpoint Imperative: In a Software World, Hardware Does Matter

By G C Network | January 9, 2018

Hardware matters. From productivity to security to innovation, make sure your machines can keep up. Intel’s Sarah Wieskus joins The End Point Imperative: A Podcast series from Intel to discuss…

IT Transformation with Watson

By G C Network | January 5, 2018

Credit: Shutterstock by Kevin Jackson & Dez Blanchfield   IBM recently launched an exciting new project in the form of a podcast series produced and hosted Dez Blanchfield, appropriately titled the…

The Endpoint Imperative: A Form Factor Renaissance

By G C Network | December 22, 2017

Workplace expectations are changing, and along with them, the devices we use to do our jobs. In this episode of “The End Point Imperative”, Intel’s Sarah Wieskus tells us about…

Cloud Storage 2.0 Set To Dominate Market

By G C Network | December 19, 2017

The enterprise data storage marketplace is poised to become a battlefield. No longer the quiet backwater of cloud computing services, the focus of this global transition is now going from…

Top “Cloud Musings” Posts For 2017

By G C Network | December 17, 2017

    ( This content is being syndicated through multiple channels. The opinions expressed are solely those of the author and do not represent the views of GovCloud Network, GovCloud…

The Endpoint Imperative: ID’ing and Overcoming the Stumbling Blocks to Digital Transformation

By G C Network | December 6, 2017

Digital Transformation is the No 1 priority for organizations large and small. It’s imperative that IT remove any obstacles to digital transformation success – including outdated PCs and mobile devices.…

Industry Verticals Tackle Unstructured Data

By G C Network | December 1, 2017

  Organizations around the world are struggling to cope with the current data explosion. A vital characteristic of this data is that it is unstructured and represents things like email,…

The Endpoint Imperative: The Perimeter is Dead; Long Live the Perimeter!

By G C Network | November 27, 2017

Cloud, mobility and the Internet of Things have obliterated the traditional perimeter that protected organizations. The result: Higher productivity, but bigger challenges for security, data protection, and mobile device management.…

The Data Storage Explosion

By G C Network | November 25, 2017

Cloud computing innovation will power enterprise transformation in 2018.  Cloud growth is also driving a rapid rise in the storage market, exacerbating the enterprise challenge around storage cost and complexity.…

Digital Transformation Drives Mainframe’s Future

By G C Network | November 15, 2017

  Digital Transformation is amplifying mainframe as mission critical to business growth more than ever before. With 70% of the world’s corporate data and over half of the world’s enterprise…

Photo credit: Shutterstock

 

Runaway cloud computing cost may be causing an information technology industry crisis.  Expanding requirements, extended transition schedules and misleading marketplace hype have made “Transformation” a dirty word.  Questions about how to manage cost variances and deviations with assets and cost across different suppliers abound. A  recent Cloud Tech article explained that while public cloud offers considerable cost savings in comparison to private or on-premises based alternatives, there may also be significant hidden costs. Operational features like auto-scaling can cause costs to soar in line with demand for resources, making predicting costs difficult and budgeting even harder. There is also an acute need for a holistic and heterogeneous system that can track the costs of cloud services from the point of consumption (e.g., an application or business unit) down to the resources involved (e.g., storage or compute service).
Sitting at the apex of all of these issues is the CFO or corporate Vice President of Finance. As the key budget manager for most organizations, it is where many of the key financial decisions are made. This is also where the spectrum of IT cost responsibility extends from the pure financial analytics tasks of:
  • Optimization;
  • Forecasting and projection; and
  • Financial reporting
To the pedestrian but crucial accounting tasks like:
  • Show-backs and charge-backs
  • Charge reconciliation; and
  • Budgeting policy management
The most prevalent cause of these financial problems is a failure to keep track of virtual assets in the cloud.  Many companies have lost complete visibility and control of cloud computing cost simply because they failed to tag and track these assets.  Unfortunately, this error is typically realized after hundreds or even thousands of cloud based assets have been instantiated.
Experts have also outlined a five-step process that help enterprises bring control and governance to hybrid cloud IT cost.
Step 1: Establish governance thresholds and policies for services
Step 2: Access your cloud service provisioning accounts
Step 3: Track the costs of the services, including recurring and usage-based costs
Step 4: Enforce compliance on the costs and asset usage using the purpose built cost analytics engines; initiate and track changes
Step 5: Simulate and optimize the control and compliance actions and better control your costs
Managing spend and assets across hybrid clouds also requires the availability of actionable data. This will help the CFO focus on which assets are performing as expected and which are not. Predictive analytics and insight-based recommendations can also help to drive the prioritization of changes that can have the most effective impact.
These sort of challenges can certainly be acute but the solution for helping organizations gain control of these issues will typically include holistic hybrid cloud management. In fact, financial organizations are just now realizing their critical role in managing the operational expenditure model embraced by cloud computing. Services specifically designed to address the financial management aspects of cloud metering, billing, workload management and service provisioning policies are just now hitting the marketplace.
One of these leading financial management services is provided by IBM. Their newly launched Cost and Asset Management application helps companies address escalating cloud costs and complexity while offering guidance into the next steps of hybrid cloud transformation. Through the use of predictive analytics to monitor and provide recommendations on a single dashboard, this service can provide finance and IT on one system of reference for hybrid cloud governance. This particular service can establish and enforce governance control points using financial and technical policies. Its ability to easily combine asset tags with policies can help the CFO identify and respond to financial variances before they become problems. Through the innovative use of Watson Cognitive services, this particular application can tap into a years of IBM experience to offer recommendations using built-in advanced analytics and cognitive capabilities. Acting on these suggestions can streamline cloud usage, predict future trends and identify waste.
If your company is currently experiencing these digital transformation challenges, learn more about managing hybrid IT finances at ibm.biz/ExploreCloudBrokerage. Establishing a focus on cloud governance, cost and asset management is a truly essential step towards expanding the operational benefits of hybrid cloud.

This post was brought to you by IBM Global Technology Services. For more content like this, visit IT Biz Advisor.

 

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