Despite the many known advantages of cloud computing or cloud hosting, there are several drawbacks to selecting a cloud hosting provider. While a virtual private server (VPS) is considered by some to be a suitable cloud solution, cloud hosting options are much more sophisticated. As a result, cloud computing technologies have introduced a new set of hosting solutions with a different set of advantages and disadvantages.
Before you jump on the free or cheap cloud computing bandwagon, and as you level your options, take some time to read the following information about cloud computing, its real costs, security breaches, the misconception of vendor lockouts and more.
What is cloud computing?
Cloud computing is an on-demand technology that enables remote Internet access to server infrastructure on a pay-per-use basis. It offers a wide variety of IT resources, such as software, file storage, and data processing, from anywhere in the world without the need to connect to a personal computer or local server.
Some examples of cloud computing services include Google Cloud, Azure, and Amazon Web Services (AWS). Also, popular services that take advantage of cloud computing are streaming services like Netflix, Disney+, Spotify, and Apple Music.
When comparing VPS to dedicated and cloud hosting, you’ll find that cloud hosting employs cloud computing technology to distribute computing power across multiple machines instead of isolating it on a single server. These cloud environments have community-driven application programming interfaces (APIs) for managing infrastructure services.
Free Cloud Hosting Costs
One of the most infamous cases of cloud downtime caused by an outage was AWS’s EC3 crash in 2021, which affected big websites like IMDb, Netflix, Amazon Alexa, Roku, and more.
When choosing a cloud provider, you should be more inclined to select one with the least known outages in recent years. This is because there are many difficulties in restoring the service, migrating it to another provider or establishing it locally.
Here are some of the causes of downtime in free cloud computing:
Depending on the provider’s security scope, your stored data may not be as secure as you would like it to be. This affects large companies that store large amounts of data in the cloud, which can lead to problems after any loss or leak of information, even financial losses.
Free cloud data storage services offer fewer security and privacy options than paid ones. You are almost completely dependent on a third party to manage the data. Because the service provider owns, manages, and oversees the cloud infrastructure, you transfer control to them.
In shared environments, unauthorized access and data recovery are common risks. The data you have stored can be breached and even changed without your knowledge. Before adopting cloud technology, check where your provider stores your data and what security measures are in place.
You will have storage problems when using free services. Many cloud storage service providers limit the bandwidth of their users. Therefore, additional and sometimes expensive charges will be assessed if your company exceeds your allowance.
Backups and other features
Cloud providers make recovering lost files relatively easy by storing the data in a different location or data center for the company. However, this feature does not come without a cost. Depending on the storage required or your company’s backup retention schedule, backup and disaster recovery add significant cost to your hosting environment.
What to look for in a cloud hosting provider
When looking for a cloud hosting provider, here are some crucial factors to consider:
By considering these factors and doing extensive research, you can choose a cloud hosting provider that meets your business needs and helps you achieve your goals.
Is cloud hosting right for your business?
Determining if cloud hosting is right for your business depends on several factors. Here are some questions you can ask yourself to help make a decision:
By taking these factors into account and weighing the benefits and risks, you can decide if cloud hosting is right for your business. It’s also a good idea to research and compare different cloud hosting providers to find the one that best suits your needs.
CapEx vs. OpEx Pricing
Capital expenditures or CapEx refer to the capital expenditures that companies make each year. Improves a company’s fixed assets, such as software, licenses, and infrastructure/property. These assets develop or add value to needed long-term resources and income. Anything you invest in can become a fixed asset.
We recommend taking some time with CapEx as it is primarily an indicator of a company’s current life cycle. If not developed properly, it can lead to misinformation about the true state of a company. Take other indicators into account when noting your CapEx.
Operating Expenses or OpEx are the day-to-day expenses of a business, such as software support, research, salaries, and any services provided. Of course, you have to consider current service charges, long-term costs, and taxes. In the case of OpEx, you essentially pay as you go. Both CapEx and OpEx go into your budget and balance sheet.
CapEx tends to have a longer purchase approval time than OpEx. This is especially true since the former requires a more significant fee and potential incidentals, while the latter has fewer costs. On a positive note, CapEx is more likely to attract dedicated investors in the future.
Foresight can make all the difference when making the necessary investments. This can also help to get accurate OpEx. Ultimately, the cloud allows us to move from CapEx to OpEx by turning computing resources into services.
In conclusion, when choosing a cloud hosting provider, be sure to research the company to avoid potential problems in the future. Also, be aware of the downsides of free cloud computing, such as hidden costs, downtime, and data leaks.
All cloud hosting providers are not created equal. Compare private cloud vs. AWS and find out if the extra cost of AWS makes sense or if a private cloud offering, like Liquid Web’s VMware Private Cloud, makes more sense for you. If you have questions or need help choosing, Liquid Web’s team of experts will be happy to help you.