But it all comes back to cost. In an era of mass digital transformation, CIOs are being asked to reduce run-the-business costs while fostering more innovation. That’s pushed many head-long into cloud systems without forethought as to whether the applications will actually cost less to run in the cloud than on-premises. Sometimes, the cloud, particularly a public cloud service in which the meter is left carelessly running on virtual machines, costs more.
“Not all workloads go [to the cloud],” Smith says. “Those that say ‘in two years, all of my workloads will be in a public cloud environment’ — I don’t think that they have thought through every detail. You may have a large bank that has stringent service levels or serious latency considerations and you may not find a public cloud provider will adhere to those service levels so it’s important to conduct a workload-by-workload, house-by-house analysis to decide what makes most sense.”
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