You’re a new CIO. It’s 9:00 a.m. on a Wednesday and you’re in an emergency Zoom meeting with IT operations leaders. The faces on the screen are somber, and it’s clear why when they explain the purpose of the meeting.
It seems that all of IT ops, which was initially budgeted at $10 million for this fiscal year, is now looking at a $4 million overrun due to the unanticipated cost of the operations personnel and tools needed to operate the new bunch of applications and databases that just moved to a public cloud.
What happened? It’s likely they hit a “cloudops wall,” meaning that the cost of operating systems in the cloud was underestimated by 20% to 30%. They assumed that, at most, the cost of operating the same systems in the cloud would be about 10% more than on premises. Indeed, the industry told them that operations cost would likely be reduced.
The reality is that a few things are occurring right now.
First, the pandemic pushed many…