Are you Wasting your Cloud Spending?
Due to the pandemic-enabled rush to shift to the cloud, many organizations have grown bloated with excess, unused, or orphaned Infrastructure. Fortunately, the same cloud's on-demand agility that creates waste also offers a way to automate platform rightsizing and sizing.
Businesses are switching to the cloud at an ever-increasing rate as part of the digital transformation effort. Gartner reveals that the global share of public cloud services will increase by 20% in 2022, reaching $494.7 billion, building on year-over-year growth.
"Cloud is the powerhouse that drives current digital firms," said Sid Nag, research VP at Gartner. "CIOs got over the irrational exuberance of implementing cloud services & are skeptical in their selection of public cloud providers to elevate business & technology outcomes in their digital transformation."
However, waste also rises as cloud spending soars. A recent investigation revealed that Infrastructure not being used to its full potential wastes 32% of cloud expenses.
The silver lining is that you are not the only one concerned about skyrocketing cloud charges! 51% of the 3,200 IT decision-makers who participated in the 2021 HashiCorp State of Cloud Strategy Survey listed cost issues as the primary cloud challenge.
Cloud Cost Management is the Need of the Hour
Optimizing the current Multi-Cloud Strategy for cost savings is the top priority for 73% of cloud decision-makers, according to Flexera's 2020 State of the Cloud Report. And luckily, cloud cost management comes to help!
Cloud Cost Management includes expense tracking, reporting, visibility, allocation, budgeting, and forecasting under one general heading. The goal here is to comprehend and control the expenses related to public cloud services.
It entails being aware of the sources of costs, the teams to whom they may be assigned, and the amount they can expect to pay in the future. Here are the best practices.
Achieve a Unified View - Cloud teams must rely on visualization and reporting tools for complete, end-to-end visibility over the entire multi-cloud Infrastructure and associated billing charges from a single platform.
Track Unit Costs - Firms must be aware of and keep track of their unit expenses over time to determine whether a cost increase is proportionately linked to revenue growth.
Analyze Kubernetes - Understanding the business value and monitoring the effectiveness of Kubernetes investments may be done effectively using unit economics.
Optimize Infrastructure - With real-time recommendations customized to the environment and easy to deploy, advanced cloud cost optimization tools assist businesses in continuously optimizing cloud spending.
What does the future hold?
Many firms use a Multi-Cloud Strategy to increase their agility and scalability as they prepare for a future with constantly changing consumer needs. "IT leaders who portray the cloud as an enabler rather than a final state will be most successful in their digital conversion journeys," said Sid Nag from Gartner.
The firms combining cloud with one more adjacent - emerging tech will fare even better." A McKinsey survey shows roughly 80% of organizations consider controlling cloud spending difficult.
But with intelligent cloud solutions and best practices regarding Cloud Cost Management, it doesn't have to be. Cloud is the backbone of any modern business, and effective cloud management is the way to sustain it.