3 Tips for Effective Cloud-Cost management

By Cloud Computing Outlook | Tuesday, September 08, 2020

The cloud bills that some companies get at the end of the month are rocketing skyward. CIOs and CFOs are wondering if there are any ways to manage these leaping costs. Here we are discussing some practical ways that will help the organizations effectually cut down the surging cloud costs

Fremont, CA: A growing number of enterprises that have opted cloud and shifted their workloads and operations to the cloud to save cost — a benefit promised by the cloud, are now wondering why they're not able to save much money as expected. The cloud bills they're getting at the end of the month are rocketing skyward. This unexpected surge in the cloud costs is generating apprehensions among CIOs and CFOs. Are the cloud services really costlier than promised? Are the costs rising for faulty use of the service? Are there other ways to curb the costs with existing providers and services? The answer to the last question is, yes. There are ways to curb the costs, and that is what we are going to discuss in this article.

Need for an Effective Plan

It is true that migrating to cloud or its adoption saves cost, but that doesn't happen by just simply migrating to it. Thorough planning and a detailed-analysis following the plan are necessary. A company needs to have clear objectives as to why they are migrating to the cloud and what are the benefits they're expecting from the cloud. A company must cut down all unnecessary service requirements, which will just add up to the cost and put only those services to the cloud that are most needed. Assessing the duration of the services required by cloud is also essential. Obtaining service for four months and paying for a year is not just a bad idea, but a worse one.

Cost-Conscious Culture

Migrating to the cloud is not just a technological change but a cultural shift too. This shift entails companies to introduce and encourage a cost-conscious cloud culture that's focused on saving money and improve performance. There are a number of cost savings opportunities available with the organization; what they need is cost transparency and clean financial data to get accurate visibility to those opportunities. Organizations should also measure their cloud spend against business metrics like total orders, subscribers, and orders completed.

Prefer Cloud-Native

Some organizations take a simple lift-and-shift approach to cloud migration. Though that is easy and requires less effort, sometimes they should be done only after understanding the impact of such shifts for particular applications. Sometimes the lift-and-shift strategy may cost a good chunk to the profits of the organizations due to risk arising out of latency, performance issues, and total migration failure. Instead, companies may prefer a cloud-native approach, which exploits the advantages of the cloud delivery model. Some CIOs consider cloud-native the best way to move existing workloads to the cloud.