Nexon blog - Cloud Performance Monitoring: Identifying & Overcoming Key Challenges

Cloud performance monitoring goes beyond basic cloud monitoring to track the speed, reliability and cost of modern apps. This guide outlines what to measure, the biggest challenges (visibility gaps, alert fatigue, tool sprawl, egress costs) and how to fix them with OpenTelemetry, SLOs, smarter alerting and cost controls.

Key takeaways

Migrating to the cloud promised simplicity, but for most Australian IT managers, the reality is “sprawl.”

As organisations adopt new services to support hybrid work and AI, they often end up with a fragmented estate: a mix of public cloud resources, private cloud legacy apps, and shadow IT SaaS subscriptions.

Without a unified operating model, this complexity creates cost leaks, security gaps, and operational friction. The simple fact is, you cannot manage what you cannot see.

To regain control, IT leaders must move beyond basic monitoring. They need a structured cloud management framework that turns this complexity into a competitive advantage, ensuring the organisation remains secure, profitable, and ready to scale.

Cloud management 101: Moving beyond the basics

Cloud management involves more than just keeping servers running. For IT leaders, effective management means comprehensive control and oversight of the entire infrastructure, services, and applications.

At its core, true cloud management acts as the “operating system” for your IT department, unifying disparate disciplines—DevOps, FinOps, and SecOps—into a single view.

Why "good enough" is no longer enough

The three pillars of effective cloud management—Governance and Security Foundations, Operational Resilience, and Optimisation and FinOps—form the architectural backbone of a stable, scalable organisation. We dive deeper into each pillar below:

By standardising these operations, you create a “Golden Path”, which is a pre-approved, secure way for teams to consume cloud resources without breaking the bank or the rules.

The three pillars of effective cloud management

In the past, IT teams managed infrastructure using a spreadsheet and a few manual scripts. Today, with the speed at which technology changes, manual processes have become legacy.

Pillar 1: Governance and security foundations

In a manual world, security is a gatekeeper that slows you down. In a managed cloud, security is a guardrail that lets you move fast.

Nexon blog - Cloud Performance Monitoring: Identifying & Overcoming Key Challenges - Three pillars - Pillar 1: Governance and security foundations

Pillar 2: Operational resilience

Resilience is the ability to withstand failure without the client noticing. It requires moving beyond simple uptime monitoring to deep observability.

Nexon blog - Cloud Performance Monitoring: Identifying & Overcoming Key Challenges - Three pillars - Pillar 2: Operational resilience

Pillar 3: Optimisation and FinOps

The most common cloud failure is cost. Without controls, the “pay for what you use” model quickly becomes “pay for what you forgot to turn off.”

Nexon blog - Cloud Performance Monitoring: Identifying & Overcoming Key Challenges - Three pillars - Pillar 3: Optimisation and FinOps

Solving the 5 biggest cloud challenges

Most cloud strategies fail not because of technology, but because of operational friction. We’ve identified the five most common barriers to success for Australian organisations and the specific solutions for them.

1

Legacy infrastructure and technical debt

Many organisations are held back by ageing on-premise hardware that is too complex to manage and too risky to move.

Real-World Proof: ISS Australia faced this exact dilemma with 170+ virtual machines on ageing infrastructure. By migrating to Nexon’s private cloud, they reduced operational costs by 25% and enabled full disaster recovery (DR) testing for the first time. This shift removed the capital burden of refreshing hardware, allowing them to focus on service delivery.

2

Fragmented systems and tool sprawl

When every department buys its own SaaS tools, data becomes siloed, and reporting becomes a manual nightmare.

Real-World Proof: Emergent Group, a complex partnership of engineering firms, struggled with disconnected legacy systems that made financial reporting take six weeks. Nexon implemented Microsoft Dynamics 365 Business Central to unify their data. As a result, financial reporting time dropped from six weeks to just two, providing a “single source of truth” for the entire group.

3

Adoption fatigue

The best cloud management platform will fail if your team refuses to use it.

4

Cost leaks and over-provisioning

Without guardrails, cloud consumption creates “bill shock.”

5

The network blind spot

Cloud management often ignores the pipe that connects users to the data.

The operating model: Human roles & measuring success

A successful cloud management strategy requires a clear operating model that defines roles and responsibilities and, more importantly, how success will be measured.

Managed service vs. in-house

The most common mistake organisations make is assuming their internal team can handle everything. In reality, modern cloud environments require 24/7 surveillance that small teams cannot sustain.

The Hybrid Approach

We recommend a shared responsibility model. Your internal team owns the “Product” (features, logic, business value), while Nexon owns the “Platform” (uptime, security, patching).

The Engagement Tiers

Nexon structures this support into three distinct tiers to match your maturity:

Measuring what matters: The "Client Happiness" model

Traditional MSPs measure success by “Uptime” (e.g., “The server was up 99.9% of the time”). But if the server was up and the user experience was slow, the service failed.

We believe in a Client Happiness Model. This is a closed-loop feedback process that measures the actual satisfaction of your internal users. By correlating technical metrics (latency, errors) with human sentiment (feedback), we ensure that our cloud solutions deliver actual business value, not just green lights on a dashboard.

Getting started: The Nexon engagement cycle

Transforming your cloud operations is a journey, not an overnight switch. We utilise a proven four-stage engagement cycle to guide Australian organisations from chaos to control.

1
Consult

We assess your current estate to identify cost leaks, security gaps, and legacy bottlenecks.

2
Transform

We re-architect the environment, deploying secure landing zones and migrating workloads to the optimal platform (Private, Public, or Multi-cloud).

3
Secure

We implement “Policy as Code” and cyber security controls to lock down the environment.

4
Manage

We take over the 24/7 operation, applying our “Operational, Tactical, and Strategic” support layers to ensure you maintain momentum.

By partnering with a specialist who takes end-to-end accountability, you can turn cloud complexity into a competitive advantage.

Ready to regain control?

Explore our Cloud Management Solutions or contact us today to discuss a tailored solution that fits your specific needs.

FAQs

What is cloud management?
Cloud management is the control and oversight of an organisation's infrastructure, services, and applications across public, private, and multi-cloud environments. It unifies security, cost, and performance into a single operational view.
Why is cloud management important?
Without management, cloud environments suffer from "sprawl"—uncontrolled costs, security vulnerabilities, and shadow IT. Effective management ensures the organisation remains secure, compliant, and cost-efficient while scaling.
What are the key components of cloud management?
The core components are Governance (Policy as Code), FinOps (Cost Control), Observability (Monitoring), and Automation (Self-healing). Together, they create an Integrated Digital Solution.
How does cloud management reduce costs?
It reduces costs through FinOps practices like automated rightsizing (shrinking oversized servers) and shutting down idle resources. This ensures you only pay for the value you actually consume.
What is the difference between cloud management and cloud orchestration?
Cloud management is the broad discipline of controlling the environment. Cloud orchestration is a specific subset that automates the workflows (like provisioning a server) to execute that control efficiently.
How does Nexon help with cloud management?
Nexon acts as an extension of your team, providing end-to-end management. We handle the 24/7 operational burden (security, patching, monitoring) so your internal team can focus on strategic innovation.

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