TMNG Global Introduces New Cloud Value Model

TMNG Global Introduces New Cloud Value Model

Hidden cloud migration costs are still a concern for smart corporate executives

TMNG Global introduced a new proprietary financial model called the Cloud Value Model(SM) that allows corporations and executives to measure actual costs and benefits originating from migration to the Cloud. The product is able to provide thorough analysis on potential cost savings before, during, and after migration to the Cloud, allowing corporate executives to work out more precise strategic plans and adopt cloud-based solutions based on carefully estimated return on investment, according to Rich Nespola, TMNG Global’s Chairman and CEO.

For many companies, the inability to accurately determine costs is a significant barrier to Cloud adoption. This is particularly true as it pertains to the comparison of legacy IT costs to the costs of new Cloud services,” Nespola said in a press release. “Our Cloud Value Model(SM)performs a comprehensive five-year end-to-end lifecycle analysis of IT operations, systems and applications, thereby quantifying both the hard and soft costs and benefits of moving to the Cloud for our clients,” he added.

The Overland Park, Kansas-based company has developed a product, enabling enterprise customers to measure all expected benefits from cloud migration in real financial terms, based on assessment of current overall IT costs that are gauged against those costs during migration to the Cloud and afterwards.

Corporate executives would be glad to use such a tool in taking decisions on cloud solutions adoption after a growing number of managers realize there are hidden costs of deployment of cloud-based solutions that are able to hamper overall positive effect of cloud solutions adoption. When migrating to the public cloud, a company should be ready to face significant costs related to tweaking existing applications to be able to run flawlessly in the Cloud. Actually, most relatively older but widespread business applications are not completely cloud-ready, requiring significant investment in additional software development if a company wants to move existing business applications to the Cloud.

Another aspect of the same problem is related to integration between traditional on-premise systems and cloud-based solutions that often requires specific interface and protocols to achieve full compatibility. Thus, an enterprise would be forced to invest heavily in integration software to take utmost advantage of cloud-based systems that usually utilize latest protocol versions and rely on most recent technology. In fact, this scenario brings benefits in the long run for companies are forced to shift to the most modern solutions available but can be burdening from a budgetary point of view.

If a company is adopting an exit plan scenario that envisages return of backed up data and services back on-premises in case of cloud provider failure to deliver, those additional costs are to be planned in advance and included in the overall assessment of cloud adoption costs. A clever approach to cloud migration, however, requires never relying on a sole solution and be prepared for emergencies that occur in the cloud. Taken as a whole, the Cloud is more secure in terms of protection against power failures and subsequent loss of data and provides reliable backup options. Nonetheless, recent inability of cloud giant Google to restore diminished content of numerous users of its Gmail web email service shows that even leading cloud providers can experience serious troubles restoring data and information regardless of what actually triggered the problem.

A company might incur further hidden expenditures if its managers are not aware that the process of migrating large volumes of corporate data to the Cloud is similar, in theory, to using Appple’s iCloud web service to store music online but can be very costly in practice due to specifics of price determination in the Cloud. Imagine a scenario where a cloud provider charges only 1 cent per GB uploaded to its remote storage servers but the cost of download is set at 10 cents per GB. A simple calculation shows that if your day-to-day business process requires the download of vast data volumes from a remote server it would not be very advantageous to use such service. We are yet to see whether the Cloud Value Model(SM) is able to evaluate such expenses in a usable and proper manner but executives should be aware that many of the obvious advantages of cloud-based solutions could be wiped out if adopted without proper and thorough costs analysis.

By Kiril Kirilov

Sorry, comments are closed for this post.

Red Hat Offers Container Native Persistent Storage for Linux Containers

Red Hat Offers Container Native Persistent Storage for Linux Containers

Red Hat Offers Container Storage Latest Red Hat Gluster Storage release enables greater agility and efficiency for OpenShift developers deploying application containers in production SAN FRANCISCO – RED HAT SUMMIT – June 28, 2016 – Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions, today announced new storage innovations designed to enable developers to…

Dismissal Of Class Action Lawsuit A Setback For Internet Privacy

Dismissal Of Class Action Lawsuit A Setback For Internet Privacy

A Setback For Internet Privacy On Monday the Third U.S. Circuit Court of Appeals (a federal appeals court) unanimously dismissed a class action lawsuit by parents of children under the age of 13 who had used Nickelodeon’s websites against Google and Viacom (which owns the Nickelodeon websites). This was a result of litigation beginning in…

Controversial Chinese Cybersecurity Law Under Review Again

Controversial Chinese Cybersecurity Law Under Review Again

Cybersecurity Law BEIJING. The National People’s Congress, the equivalence of the Chinese Parliament, moved forward in drafting a second version of a controversial cybersecurity law first introduced almost a year ago. This means the law is thought to be closer to passing and will bring greater censorship for both foreign and domestic citizens and businesses.…

Personal Account of Google CEO Compromised

Personal Account of Google CEO Compromised

Personal Account Compromised The security of our information online, whether it’s our banking details, emails or personal information, is important. Hackers pose a very real threat to our privacy when there are vulnerabilities in the security of the services we use online. It can be worrying then when the CEO of perhaps the largest holder…

How You Can Improve Customer Experience With Fast Data Analytics

How You Can Improve Customer Experience With Fast Data Analytics

Fast Data Analytics In today’s constantly connected world, customers expect more than ever before from the companies they do business with. With the emergence of big data, businesses have been able to better meet and exceed customer expectations thanks to analytics and data science. However, the role of data in your business’ success doesn’t end…

Low Cost Cloud Computing Gives Rise To Startups

Low Cost Cloud Computing Gives Rise To Startups

Balancing The Playing Field For Startups According to a Goldman Sachs report, cloud infrastructure and platform spending could reach $43 billion by 2018, which is up $16 billion from last year, representing a growth of around 30% from 2013 said the analyst. This phenomenal growth is laying the foundation for a new breed of startup…

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

What Cloud Technology Has Allowed Us to Do Better The cloud has made our working lives easier, with everything from virtually unlimited email storage to access-from-anywhere enterprise resource planning (ERP) systems. It’s no wonder the 2013 cloud computing research IDG survey revealed at least 84 percent of the companies surveyed run at least one cloud-based application.…

Four Reasons Why CIOs Must Transform IT Into ITaaS To Survive

Four Reasons Why CIOs Must Transform IT Into ITaaS To Survive

CIOs Must Transform IT The emergence of the Cloud and its three delivery models of Infrastructure as a Service (IaaS), Software as a Service (SaaS) and Platform as a Service (PaaS) has dramatically impacted and forever changed the delivery of IT services. Cloud services have pierced the veil of IT by challenging traditional method’s dominance…

Cloud Infographic: IoT For Automotive Deconstructed

Cloud Infographic: IoT For Automotive Deconstructed

IoT For Automotive Deconstructed The IoT automotive industry is moving rapidly with many exciting growth opportunities available. We’ve written about some of the risks and benefits as well as some of the players involved. One thing for certain as that the auto industry is starting to take notice and we can expect the implementation of a…

5 Predictions For Education Technology

5 Predictions For Education Technology

Education Technology Although technology has fast influenced most sectors of our world, education is an area that’s lagged behind. Many classrooms still employ the one-to-many lecturing model wherein the average student is catered for while a few are left behind, and others bored. Recently, there’s been a drive to uncover how to use technology successfully…

Five Signs The Internet of Things Is About To Explode

Five Signs The Internet of Things Is About To Explode

The Internet of Things Is About To Explode By 2020, Gartner estimates that the Internet of Things (IoT) will generate incremental revenue exceeding $300 billion worldwide. It’s an astoundingly large figure given that the sector barely existed three years ago. We are now rapidly evolving toward a world in which just about everything will become…

Cloud Infographic – Monetizing Internet Of Things

Cloud Infographic – Monetizing Internet Of Things

Monetizing Internet Of Things There are many interesting ways in which companies are looking to connect devices to the cloud. From the vehicles to kitchen appliances the internet of things is already a $1.9 trillion dollar market based on research estimates from IDC. Included is a fascinating infographic provided by AriaSystems which shows us some of the exciting…