As more and more companies move to the cloud, they are discovering the hidden costs of micro-segmentation – the practice of breaking down cloud services into smaller components and charging for each one individually. While the individual prices may look attractive, the end-to-end cost of a complete solution can be outrageously expensive, often more so than self-hosting the solution on-premise.

According to a study by 451 Research, 90% of enterprises are using some form of cloud computing, and many of them are seeing unexpected costs as they migrate workloads from on-premise solutions to the cloud. The study found that on average, companies overspend on cloud services by 23%, and much of this overspending is due to the complexity of cloud pricing models.One of the main reasons for the complexity is the micro-segmentation of cloud services. Cloud providers often break down services into smaller components, such as storage, computing power, and network bandwidth, and charge for each component individually.

While this may seem like a good way to offer flexibility and choice to customers, it can quickly add up, especially for companies that require a complete end-to-end solution.To make matters worse, cloud providers often make it difficult to calculate the total cost of a solution. Instead, they provide pricing for each component separately, without taking into account the other components that are required to create a complete solution. This can lead to unexpected costs and budget overruns, as companies are forced to pay for services they didn’t realize they needed.So, what can companies do to avoid these hidden costs? One option is to consider self-hosting the solution on-premise. While this may seem like a step backward, it can actually be more cost-effective in some cases. According to a study by Forrester Research, companies that self-host their applications can save up to 70% compared to using a public cloud provider.Self-hosting allows companies to have complete control over their infrastructure and avoid the hidden costs associated with micro-segmentation. However, it’s important to weigh the pros and cons of self-hosting versus using a public cloud provider. Self-hosting requires a significant upfront investment in hardware and software, as well as ongoing maintenance costs. Public cloud providers, on the other hand, offer flexibility and scalability, and may be a better option for companies that need to rapidly scale their infrastructure.In conclusion, the micro-segmentation of cloud services can be a hidden cost that many companies overlook when migrating to the cloud. While it may seem like an attractive option at first, it can quickly add up, especially for companies that require a complete end-to-end solution.

Self-hosting may be a better option for some companies, but it’s important to weigh the pros and cons before making a decision.

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