Before you jump into a contract with one of the Large Cloud Providers
Read and Consider these 12 Essential points
After the initial term with a large cloud provider, businesses may encounter several pitfalls impacting cost, flexibility, and long-term value. Some of the most common challenges include:
- Cost Increases: Many cloud providers offer discounted rates or promotional pricing during the initial term. Once this period ends, businesses may face significant price hikes or unpredictable pricing models, which can lead to higher-than-expected operational costs.
- Vendor Lock-In: As organisations become more integrated with a single cloud provider, switching providers can become increasingly difficult and expensive. This can result in a lack of flexibility and reduce bargaining power.
- Complex Pricing Models: Over time, cloud providers may introduce more complex billing systems, making it harder to understand usage patterns and cost breakdowns. This can lead to unexpected costs, especially if services or resources are under or over-provisioned.
- Service Level Agreements (SLAs) and Downtime: While large cloud providers offer SLAs with uptime guarantees, real-world performance may vary. Any downtime or outages can severely impact business operations, and the compensation for such disruptions may not align with the costs incurred.
- Security and Compliance Challenges: Maintaining security and compliance across a cloud environment can be tricky, particularly as businesses scale. Cloud providers may not offer all the necessary tools or configurations for specific industry regulations, requiring additional effort or third-party services.
- Loss of Personalisation: With the growth of a business, it may outgrow the standard services and support offered by a cloud provider. The lack of tailored, personalised service can lead to suboptimal performance or user experience.
- Resource Management Complexity: As your infrastructure scales, managing a large cloud environment can become increasingly complex. Without proper governance, this can result in inefficiencies, unused resources, or even security vulnerabilities.
- Lack of Interoperability: If a business uses multiple cloud services or on-premises infrastructure, integrating with a specific provider’s ecosystem may present difficulties. These challenges can arise from proprietary technologies, APIs, or non-standard formats that limit interoperability.
- Data Transfer Costs: Moving large amounts of data in and out of a cloud provider’s environment can become prohibitively expensive, particularly when shifting data across regions or if the cloud provider’s architecture is not optimised for efficient data transfer.
- Scaling and Flexibility Issues: Over time, your needs may change, and you may need to scale up or down quickly. Some large cloud providers may have limitations or higher costs for scaling, reducing flexibility or increasing operational overhead.
- Support and Customer Service: As the customer base grows, the level of support can become less responsive or more standardised, making it harder to get tailored assistance when facing technical challenges.
- Data Residency and Sovereignty: Larger providers may not always offer data storage options that comply with specific geographic data residency requirements or regulations, creating complications for businesses with strict compliance needs.
Navigating these issues requires a clear understanding of long-term costs, architecture flexibility, and the ability to adapt to evolving business needs. At Claritas, we mitigate risks with best-in-class cloud strategy and implement effective cloud management practices.
At Claritas we are experts at providing solutions that address the common pitfalls associated with dealing with large cloud providers, Claritas proactively work with Clients to ensure long-term pricing agreements are understood beyond the initial term, ensuring predictable costs. We can implement a hybrid cloud strategy and on-premise solutions to reduce vendor lock-in and enhance flexibility, while leveraging containerisation and standardised APIs for seamless platform interoperability.
For compliance and security, Claritas integrate automated monitoring systems and compliance frameworks to meet industry-specific regulations, ensuring data protection and minimising risk. We streamline scalability with advanced orchestration tools, enabling rapid resource scaling with minimal cost impact, we conduct performance audits to guarantee uptime and meet SLA standards.
Additionally, we have a dedicated support team for tailored assistance, while data residency concerns are addressed by choosing Claritas’ Sovereign Cloud aligned with local data sovereignty compliance requirements. Data transfer strategies are optimised to minimise associated costs.
Through careful governance and cross-functional collaboration, Claritas can solve these challenges and create a resilient, adaptable cloud infrastructure that aligns with our client’s evolving business goals.