The Cloud promises significant computing-spend savings, but some users have noted fluctuating monthly bills.
The key to keeping cloud costs down is understanding how and how often platforms, devices, and applications are used But for many companies that have migrated to the Cloud, it’s not always easy to gain a true picture of use by business units or employees without in-depth analysis. Just like utilities, Cloud storage, applications, backup and recovery, and security fees are based directly on how, why, and how often Cloud services are consumed.
Why costs increase or decrease
Cloud computing deployment is fast and easy. However, that doesn’t mean the job is done once migration is complete.
The IT team must be watchful of any spikes, build-ups, and sudden declines in usage. Are these normal usage patterns that are necessary for business operations, or do these patterns show an inefficient use of resources that is contributing to increasing costs?
In the scramble to the Cloud, some companies have been unprepared when making the move. Existing infrastructure is not usually ready for the targeted Cloud platform.
It is important that applications are in coherence with the chosen Cloud resources. Companies can experiment with their applications to determine the optimal level of applications. This will ensure that they do not overspend on configuration or capacity.
Managing cloud resources effectively
Effective Cloud-spending management starts with the ability to determine usage and cost of a whole portfolio of applications. This includes a deeper dive into all application tiers across development and production environments.
If Cloud usage is not tracked and managed effectively, it can create unpleasant surprises for accounting. By using the right diagnostic tools, companies can track their Cloud consumption and spending in real time.
Communicating usage and spending across the organization
Sharing Cloud usage and spending through internal collaboration is an effective management strategy. Sharing exactly how much each business unit or individual user is consuming can create accountability and help everyone do their part to reduce costs and increase profitability.
A Cloud management approach that engages all employees can help solve issues on excess storage, Cloud services, or items that should be provisioned or deprovisioned.
Controlling Cloud-computing costs is a challenge for any organization, but it is a necessary one. Cloud computing can be cheaper than maintaining legacy servers, but unknown costs hide behind complex formulas. Vigilance is key to keeping cloud costs down and building a robust bottom line.