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As enterprises are looking to deploy their workloads in cloud, there is a need to formulate an expansive and forward-looking cloud cost strategy to understand the real costs of cloud options. Effective cloud cost management requires:
- Collaboration between finance and technology
- Improved visibility on cloud spend
- Continuous optimization
- Automation and standardization
Companies need to adopt cloud financial management practices to achieve a strategic cloud cost management policy:
- Defining business KPIs: Businesses need to correlate their KPIs to cloud costs to manage the spending and assess the business impact on overall cost growth and optimization.
- Having visibility of the cloud operation and spend: Establishing a tagging strategy can help in mapping the spend data to the organizational hierarchy by cost centers, applications, and business units, followed by defining a budget.
- Tracking utilization and optimization: Enterprises need to leverage a data-driven framework to identify expensive, low-utilization, or oversized resources, and decide the reserved or committed capacity required.
Monitoring ongoing improvements: Businesses need to establish a policy-driven cleanup and storage life-cycle management to improve efficiency and innovation.
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