With cloud technology being a huge factor in many enterprise organizations, managing costs is a serious problem. Read this blog for some cost management tips.
While cloud technology has been all the craze lately, companies are looking for ways to manage costs. However, this is becoming a serious challenge for many enterprises.
According to the RightScale 2018 State of the Cloud Report, around 80% of enterprises in the survey reported that it is a serious challenge to manage cloud spending effectively. Another finding was that enterprise organizations found this more of a challenge when they had more experience with cloud computing.
So why are there so many issues managing these costs?
Well, the biggest reason is that organizations are spending tons of money on it.
According to RightScale, more than half of the organizations surveyed said that they spend more than $1.2 million per year on cloud services. In a more surprising finding, 26% of companies said that they spend over $6 million. And as we move into 2020, we expect to see these figures climb even higher.
So as cloud services are used in abundance and it looks like that isn’t stopping anytime soon, enterprises must do what they can to better manage costs.
In this post, we’ll dive into a few tips on how to improve cost management associated with the cloud.
Monitor Spending By the Day
If managing cloud costs is a problem for you, then try to keep track of costs on a daily basis. This may sound like a long and tasking process, but it can actually be very fast and efficient due to the fact that there are tons of software options out there. And better yet, keeping a daily log of cloud costs can even be automated.
Going off our last strategy, automation is key when trying to cut costs. If a manual process is replaced with a fast and efficient automated one, then you can start to see cloud costs drop dramatically. In addition, automated processes allow for simplified tracking on usage, and they even help to enforce policies throughout your whole organization. If you start to implement automated processes, you can save time, money, and resources for what really matters most within your enterprise business.
There’s a Tool for That
Another approach is more straightforward: buy a cost management tool.
With software expanding by the day, there is now a service or tool for just about anything. And the same applies to the cloud cost management scene. In fact, there are tons of options when it comes to these tools, and these solutions are officially called cloud cost monitoring and optimization (CCMO) tools. Not only can these tools help to automate processes and reduce costs when needed, but some of these tools are also very affordable.
Take a Systematic Approach
Another strategy for cloud cost management is to think systematically. This tip involves gathering your team, then coming up with detailed steps and methods for how to tackle cloud cost management issues. According to Gartner, they recommend using this five-step framework when utilizing this systematic approach:
Plan: Develop a forecast of cloud spending.
Track: Monitor your cloud spending and compare it to your budget.
Reduce: Look for ways to reduce cloud spending.
Optimize: Leverage your cloud provider’s discount models and think of how to optimize your process for cost.
Mature: Continue to analyze the process, then improve and expand on it when needed.
By using a systematic approach when trying to cut costs, you and your team can work towards strategically and efficiently crushing your goals and improving processes.
Your Trusted Cloud Service Provider!
When looking to limit costs associated with using the cloud, you deserve to work with an IT service team you can trust. Located in the Atlanta, Georgia area, Centerpoint IT is the business for you! We are proud to offer a wide section of unbeatable cloud services, and our experienced team has the skills needed to get the job done right.
For questions or to schedule a FREE consultation with the Centerpoint IT team, don’t hesitate to give us a call!