Originally posted on VMware Blogs by Dave Wolpert

In a complex multi-cloud world, IT decision-makers increasingly need timely insights to propel their organizations and infrastructures in the right direction. Cloud decision points such as pricing are important, but cloud economics goes further to consider organizational behavior, including how leaders make choices based on provider differentiators.

To understand what’s influencing the market today, Jean Atelsek, a senior research analyst at 451 Research, recently sat down with Bill Roth, director of cloud economics at VMware, to discuss what’s top-of-mind for the industry.

Trends in Cloud Economics

  • Change in Workflows

Mass migration of workflows from on-premises to cloud is slowing as more organizations are moving workflows already within the cloud.

  • The Move to Multi-Cloud

Additionally, many companies are intentionally transitioning to multi-cloud architectures to reduce their amount of risk or take advantage of platform-specific capabilities.

  • Backtracking to On-Prem

Cloud migrations can come with sticker shock. Some companies find themselves repatriating on-prem systems to offset costs.

  • Hyperscaler Price Wars are Over

Cloud providers are stepping back from using price as a main differentiator and pricing has leveled out.

  • Add-on Costs

Looking to shore up revenue streams, providers are charging for previously free services such as data transfers.

In a global economy impacted by widespread inflation and still facing supply-chain challenges, enterprises are no doubt looking for ways to continue their cloud operations and transformations without overspending. How can companies rein in the spend without stifling their teams’ need for an agile cloud environment?

VMware CloudHealth™, part of the VMware Cross-Cloud™ services portfolio, gives enterprises a real-time look into all their cloud operations and delivers custom reports that can help leaders understand their usage and spend. For example, Toast, a restaurant technology company, leaned on cloud architecture from the start but found their organic approach to adoption was eating into their budget. CloudHealth allowed Toast to understand cost spikes and optimize their environment to keep costs under control while still maintaining an agile cloud infrastructure.

Considering a move to the cloud? The VMware Cloud Economics group provides individualized insights for companies to make the transition to private and public clouds as seamless and cost-efficient as possible. An in-depth consultation with VMware SMEs can improve the ROI of your cloud initiatives with faster, lower cost migrations and reduced cloud infrastructure costs.  

Jens Koegler

Jens Koegler is VMware's Healthcare Industry Director in EMEA. He is helping our healthcare customers develop and run modern applications to drive innovation and ensure better patient care through a digital foundation that includes data center, hybrid cloud, mobile, networking and security technologies. VMware plays a strategic role in the healthcare industry. Its leading innovations in enterprise software help ensure consistent patient care and reduce IT access time for healthcare professionals so they can spend more time with their patients. Jens plays a key role in helping customers understand how new applications, devices, the latest IT technologies and digital transformation are driving innovation in healthcare.