CHECKING IN TWO MONTHS LATER: Budgeting for Cloud in 2013

January 29, 2013 by Diana Nolting


We are officially in the last few days of the first month of 2013.  

For those of you who planned your IT budget with cloud in mind for 2013, and took the gamble that the world, in fact, would not end on December 21, 2012, this blog post is for you.

For anyone who gambled that the world would end last month and didn’t make a budget at all for 2013, well… you have some catching up to do, but this post will still be a big help for you moving forward.

In November of 2012, Pat O’Day hosted the webinar, “How to Plan and Budget for 2013 with Cloud in Mind.”  The webinar covered how to create a solid plan for cloud in 2013, how to approach and integrate cloud into your budget and helped identify what those numbers might be.  (To view the full rebroadcast of the presentation, click here)

In that webinar, which you can watch on-demand or download the slides for, Bluelock Chief Technology Officer Pat O’Day shows how before you can budget for cloud, you need to determine where to start and the kind of approach you will take to get there. 

Option 1: “Walk Before You Run”

O’Day describes this first approach in this webinar. “If you're familiar with virtualization and you're using it in your environment, you may have already virtualized 25%. Some people have virtualized even 50% or 75% of their environment.”

“The idea [with this approach is] that you're going to take that next step and convert your virtual environment into a private cloud by adding self service, adding API, object storage, [and/or] a couple more capabilities; but you're in this progressive journey moving forward.”

Option 2: “Pick a Project”

A second approach is to pick a project to work with moving that project to the cloud.  

“[We’re seeing people who] want to start working on cloud or acting in a cloud-like way immediately. In these situations, it's not so much about what you're doing with your infrastructure from an IT standpoint, it's about specific projects that these business units might have and how do you enable them,” explains O’Day.

“We have seen a lot of this where a company will pick a marketing initiative, maybe a new application, and instead of spinning it up somewhere in the data center somewhere, they'll actually use that as a way to learn about cloud and deploy that.”

Option 3: “Re-think everything”

And yet, another third option, which is the most intensive and consuming, is to re-think everything. 

“[These companies are] trying to transform everything they're doing to more of a cloud-first mentality. These are folks that have typically experienced cloud, have been using it for two or three years and have realized the benefits are there, and those benefits are very real,” O’Day explains.

“The benefit is much greater the faster they can convert to this new normal. That's also if you don't understand what the benefits are and what the risks are very well. This could be, potentially, really detrimental if you took a little too much risk.”


Based on where you placed yourself going into 2013, you likely chose a strategy to move forward with that was aligned with your past history, where your business unit is and what time and money constraints you have for 2013. 

We covered the ballpark costs of public cloud, private cloud and SaaS from a high level in the webinar, which you can access in full or slide form.

The question is, now that you’re a few weeks in to the new year and your budget is likely approved, are you still on track?  Do you need to make any adjustments? 

Now is a great time to review your budget, your plan and make sure you’re still on the right track with your applications, plans and approach.  Do you have any questions you're having a hard time answering?  Do you want clarification on something?  Let us know below, in the comments, or on Twitter @Bluelock


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