KASTERVO Cloud BlogBlog

Large corporations, particularly those publicly traded, prioritize maintaining stakeholder and investor satisfaction as an essential aspect of their corporate responsibility. Cloud service providers are keenly aware of the challenges associated with migrating workloads between providers, resulting in a reluctance among clients to switch providers abruptly. Recognizing this inertia, providers may adjust pricing structures with confidence, knowing that clients are more likely to tolerate increased costs rather than undergo the complex process of migrating to a different provider. This strategic maneuver allows providers to maximize profitability while minimizing client attrition.

One of the primary concerns I have regarding cloud services pertains to egress and ingress fees, particularly concerning high-traffic applications. The costs associated with transferring data outside of the cloud environment can be considerable. While methods exist to estimate these expenses, the precise amount remains uncertain until the invoice is received. In my view, such fees should be reevaluated to either be eliminated entirely or structured as flat monthly fees if deemed essential for operational sustainability.

A comprehensive range of factors contributes to cloud service costs, encompassing various elements such as multiple storage tiers, availability zones, bandwidth utilization, and associated operational expenses. Even seemingly trivial aspects, including environmental considerations, incur costs. Utilizing cost calculators provided by major hyperscale cloud providers can be challenging for non-technical individuals. Understanding and estimating average expenses can be particularly daunting for those without a background in IT engineering.

Many of the cloud services offered by major hyperscale providers may not provide commensurate value for their cost. In addition to potentially overpaying for these services, clients often encounter limited or inadequate support unless they opt for costly support contracts. Consequently, businesses may find it necessary to retain additional personnel to manage their workloads effectively. Despite the presence of sophisticated dashboards, they may fall short of meeting the operational needs and expectations of clients.

Businesses have the advantage of scaling their resources seamlessly, a capability often unattainable with on-premises hardware. Cloud providers maintain robust compute reserves capable of accommodating sudden surges in power, compute, and storage demands. This scalability is particularly crucial for enterprises operating e-commerce platforms during peak events such as Black Friday sales or news websites covering significant events.

Many IT consultants often overlook discussing the tax advantages associated with utilizing cloud services with their clients. Cloud services, categorized as operational expenditures, offer significant tax benefits whereby clients can claim 100% of their annual expenses as tax deductions by the year’s end. In contrast, on-premises infrastructure typically entails substantial upfront capital investments. In certain countries such as Greece, tax regulations may limit the annual tax benefits for capital expenditures to 20% over a five-year period, making the tax advantages of cloud services particularly appealing.

To achieve comparable levels of availability to cloud services, substantial investments in server clusters are necessary, leading to increased expenditures in electricity, IT support, and capital infrastructure. Hosting your cloud infrastructure with KASTERVO offers a significant advantage in cost savings, particularly in electricity expenses, as it eliminates the need for HVAC systems, servers, firewalls, and switches traditionally associated with on-premises hosting.

One significant advantage of partnering with a cloud service provider such as KASTERVO is the accessibility of support services. Our dedicated support team ensures prompt and efficient assistance, coupled with transparent pricing structures. Unlike the frustrating experience of enduring extended wait times or waiting days for a response from outsourced support teams, our clients benefit from timely and effective communication, tailored to address their specific needs. This commitment to exceptional support ensures that issues are resolved promptly, enhancing overall client satisfaction and operational efficiency.