Nutanix's Vengopal Pai explains that the decision to move to the public cloud is often a top-down decision. However, organizations face challenges in actually making this transition happen. Marc Trouard-Riolle, also of Nutanix, refers to these challenges as the "headwinds" of public cloud adoption. Many organizations naturally gravitate towards refactoring their applications, but this approach is time-consuming, costly, and introduces various risks. Additionally, if an organization has engineering or development teams focused on refactoring, they are not able to allocate their resources to advancing the business in new areas, resulting in a double impact on cost and progress.
Pai points out that the transition of workloads to the public cloud is slower than expected in many cases, leading to double costs. Organizations continue to pay for data center costs while already committing to cloud builds, which increase based on usage. Pai gives an example of developers who may not fully understand the concept of cloud billing. Their actions, such as downloading files frequently, can incur significant egress costs that impact the company's expenses. This lack of awareness and alignment between cloud billing and developer actions is a common issue. Executives are increasingly concerned about rising cloud billing and are seeking ways to accelerate the transition to the public cloud while reducing costs.
Marc adds that developers often perceive the costs at a micro level and may not fully grasp the financial impact when applications run continuously and are scaled out.