In episode 102 of the Leadership Minute, Manny Korakis mentions that IBM (a Cloud Wars Top 10 vendor) is acquiring FinOps software provider Apptio. Manny shares insights into two things he, as a CFO, looks for in a company to help him migrate workloads to the cloud.
This episode is sponsored by Acceleration Economy’s “Cloud Wars Top 10 Course,” which explains how Bob Evans builds and updates the Cloud Wars Top 10 ranking, as well as how C-suite executives use the list to inform strategic cloud purchase decisions. The course is available today.
01:04 — Migrating to the cloud, with its consumption-based business model, typically promises cost savings and operating efficiencies. However, when adopting FinOps, it’s important to match the pace of your cost savings and operating efficiencies with the pace of your investments in moving to the cloud.
01:32 — If you migrate applications and workloads too quickly, and before you can take costs out of your existing cost structure, you might end up with a net increased overall cost structure, even if that increase is just short term.
01:53 — Transparency is another thing to look for in a new cloud environment. Be sure that the money you’re investing in cloud storage for migrated workloads and applications is justified by the benefits you’re receiving.
02:10 — A hosted IT environment is just one big bucket of cost. But a cloud environment should provide more granular cost reporting. That allows you to know whether individual product offerings are profitable, which helps you make better business decisions.
02:29 — Make sure you’ve partnered with the right company with experience in helping companies think through the sequencing of migrating individual applications and workloads and that provides good reporting on cloud spending to better manage overall IT costs.