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Who Holds the Budget for Your Cloud?

18th March 2015 · Our Thoughts

Red budget box

Do you know who is using the Cloud in your organisation and where they are procuring it from? According to a survey conducted at Cloud Expo Europe, 40% of organisations admitted that 10 to 20% of cloud services were being bought without the IT department’s permission. They revealed that employees were downloading apps without going through any formal IT procurement process.

With lines becoming ever more blurred about who purchases and controls the cloud services used in an organisation it is not always clear where the responsibility lies.

Here are some common scenarios to watch out for.

Public Cloud Server Sprawl

The availability and ease of access to cloud-based solutions allows individual teams to make short-term and decentralised IT buying decisions. A large multi-site enterprise for example may find that the marketing team has bought some Amazon ECS compute resource for a short term TV and radio campaign. The marketing team is happy because the setup was quick and suited their needs. The official IT department however knew nothing about it and the Finance team will get a shock when the bill comes through on the company credit card for the heavily used ECS virtual machine.

Even the control of the card used to purchase public cloud services can be an issue. What happens if the card holder leaves the company or the card expires?

You adopted what?

Even within IT teams there can be surprising decisions made when choosing a cloud platform. Picture the IT team that employs a new developer to create a new document management solution. The developer is straight out of the BizSpark program and immediately starts deploying services using Azure and the associated Windows Server technologies. Once the POC is complete the business then has to deploy in-house or host in a particular geographical region due to data sovereignty issues and suddenly has to come up with 12 cores of enterprise Microsoft SQL licensing and multiple Windows Server licenses to be compliant. Which would be nice … but they’re a marketing business with 90% of their IT on Mac and no Microsoft Volume Licensing agreement in place…

We are the Borg. Resistance is futile.

We are in an acquisitive era. Small businesses are being consumed by larger ones and in a myriad of ways. We commonly see that the greatest risk here is duplication or multiplicity, where every IT team has a distinct IT strategy and a distinct IT footprint. Until it has everything under control a business might end up paying for the same service in different locations many times over. This issue is sadly the hardest to resolve. Who is right? Which technology stack wins? Who owns the new Master Platform? In the end generally the Buyer (Borg) wins with all other platforms being assimilated over time.

Taking control

The simple solution here however is to have a solid IT strategy which everyone buys into and understands and a trusted partner in the cloud who can help you deliver and support the range of solutions and applications you require in an honest and transparent manner. A trusted cloud provider can not only provide your organisation with the data centre and public, private or hybrid cloud you might need to support different requirements, it can also provide a highly technical consultancy approach to give you an overview of your approach to the cloud.

So when it comes to your cloud budget, make sure that when you open your red box it doesn’t contain any unwelcome surprises.

To find out more about how iomart can help your business in the cloud click here or call us on 0800 040 7228


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