The adoption of cloud technology has been on the rise and for good reason - businesses streamline their operations, improve their agility, and reduce costs. However, with the increasing complexity of cloud environments, managing costs has become increasingly important.
This is where cloud cost management comes into play. It refers to the processes and tools used to control, monitor, and optimize the costs associated with cloud usage. With effective cloud cost management, you can maximize the value of cloud investments and achieve the desired outcomes.
In this blog post, we'll take a closer look at why cloud cost management is essential for business success and provide some tips on how to manage cloud costs effectively.
The Cost of Cloud
According to Gartner, global spending on public cloud services is expected to reach $591.8 billion in 2023 up from $490.3 billion in 2022. This rapid growth in cloud adoption has led to a significant increase in cloud spend for businesses. However, many organizations struggle to manage their cloud costs effectively, leading to unexpected bills and overspending.
A recent report by Flexera found that businesses waste an average of 32% of their cloud spend due to unused resources, overprovisioning, and other factors.
These statistics highlight the need for effective cloud cost management. By controlling cloud costs, businesses can avoid overspending, reduce waste, and optimize their cloud usage.
The Benefits of Cloud Cost Management
Effective cloud cost management can bring many benefits to businesses. Here are a few of them:
1. Cost savings: By optimizing cloud usage and reducing waste, you can save significant amounts of money on your cloud bills.
2. Improved visibility: Cloud cost management tools provide you with real-time visibility into your cloud usage, enabling you to identify areas of overspending and take corrective actions.
3. Better planning: You can also plan your cloud spending more effectively and make informed decisions about future investments by analyzing usage patterns.
4. Enhanced security: You can identify and address security risks associated with your cloud usage, such as unused or unsecured resources.
Tips for Effective Cloud Cost Management
So, how can you manage your cloud costs effectively? Here are some tips:
1. Monitor cloud usage: Always monitor your cloud usage regularly to identify any areas of overspending or waste. Understand the total cost of ownership of the cloud or Cloud TCO to gain real-time visibility into cloud usage and optimize your spending.
2. Optimize resource allocation: You should ensure that your cloud resources are allocated efficiently to avoid overprovisioning or underutilization.
3. Implement cost controls: Set budget limits and alerts to prevent overspending and unexpected bills.
4. Leverage cloud provider discounts: Many cloud providers offer discounts for reserved instances, long-term commitments, and other incentives. Explore these options to reduce your cloud spend.
5. Continuously improve: Cloud cost management is an ongoing process, and you should continuously monitor and optimize your cloud usage to achieve cost savings and other benefits.
Partnering With BIOS to Reduce Cloud Spend
As cloud adoption continues to grow, cloud cost management will become even more essential for businesses looking to maximize the value of their cloud investments and stay competitive in the digital landscape. With the right tools and strategies in place, you can achieve cost savings, better visibility, and improved operational efficiency, paving the way for long-term success in the cloud.
At BIOS, we work together with our clients to keep the costs of cloud and DR realistic. We achieve that.
● Working with you to understand usage and advise the most appropriate budget
● Ensuring that compute instances, storage volumes, and other services are provisioned at exactly the level you need
● Allowing you to scale and schedule usage at any point along the way
● Offering special usage detection services advise where you can further save costs on an ongoing basis
● Giving smart discounts depending on your needs
Moreover, our services are transparent with easy-to-understand billing mechanisms. These focus on discounted resource commitments that are in line with a customer's expected usage and growth plan, helping you control costs and avoid ‘bill shock’ associated with other variable billing offerings.
Our pricing is not only offered on a fixed price basis, it is usually cheaper than variable billing. When you factor in the total cost of the cloud, third-party services, and licenses, BIOS’ CloudHPT is often 50% less than the cost of a managed hyperscale service.
Engage with us to manage your cloud costs and identify the source of wastage. You may also reach out to us to get a detailed report of your total cost of ownership of CloudHPT.
Get in touch here.