No business owner wants to waste resources. That is why an enterprise seeks out opportunities for savings in all processes. When it comes to implementing critical technological advancements or system changes, the costs can be significant.
The task of migrating a system towards the cloud requires sensible handling, as it is well-known for being a real challenge in terms of keeping costs under check. This is especially true for businesses that intend to migrate with various IT vendors.
Many businesses have reported a mixed experience concerning cloud migrations on the seller’s and buyer’s sides that can result in rushing through the process of ensuring sound cloud sourcing. While this may prove time-efficient, some very important and essential cost control elements are lost in the procedure.
So the question is: how can you migrate to the cloud with a service provider while effectively neutralizing the different cost risks? The answer is that you need to ask the right questions. The following are some important topics you need to consider and discuss with your service provider if you want to enjoy suitable cost control while successfully migrating to the cloud.
Ideal Business Contract Term Duration
It has been observed that many enterprises prefer to choose shorter contract terms, so as to be able to avoid any vendor lock situations. Short-term contracts let the vendor increase the pricing as their offered cloud computing solutions gain visible market share.
The need is for companies to observe the scenarios for multiple contracts, weighing the benefits of choosing a low upfront cost for a long-term benefit or opt for the flexibility features of a short-term agreement.
Discounts and Incentives Comparison in the Cloud
Enterprises need to understand that there is a difference between the cloud and on-premise services, meaning companies need to get creative when negotiating options with service providers.
A good idea would be to inquire about the potential for discounts in the initial migration to the cloud, and to plan out a strategy which will help to protect discounts at the renewal of service. Companies can enjoy leverage to ask for improved prices, discounts, and additional services with renewals as well.
Scaling Costs While Moving Forward
Any company that has chosen a low price for basic usage will not be stuck when there becomes a need to increase or decrease the usage scale. In order to keep the costs in control, companies simply need to explore differently tiered pricing options, and ensure a shorter contract term, which is a solution to enjoy greater flexibility of pricing.
If a vendor offers it, enterprises can also enjoy variable pricing based on anticipated versus actual usage.
Make sure that you can control costs as much as possible throughout the cloud migration process to save your enterprise millions in the long run. Keeping these important topics in consideration you should see great savings by simply asking the right questions of your vendor and of yourself.
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