Companies are investing millions of dollars in cloud computing, so it's no longer just a buzzword. According to the Gartner analysis, public cloud computing will amount to 51% of Enterprise IT spending by 2025. The cloud enables businesses to run more efficiently, better serve their customers and dramatically increases their profit margins. However, with rising cloud spending, waste also increases. A recent Forbes research revealed nearly 30% of cloud spending is waste or inefficient. Organizations need to identify the sources of cloud overspending to optimize their cloud investments for maximum business advantage.
Uncover Common Causes Of Wasted Cloud Spend
- Oversized infrastructure: Oversized infrastructure in the cloud may result in overprovisioning of resources and increased cloud bills, where you are paying for more. resources than your workload demands. It may seem more lucrative in the short term to have servers immediately available, but in the long run, these costs can result in a poor return on investment (ROI).
- Unutilized resources: Cloud resources that companies pay for but don't use as efficiently as they should usually mean they are not being utilized properly due to incorrect provisioning. Failure to effectively manage and use cloud resources can lead to inefficient spending and unnecessary costs.
- Lack of Automation: Organizations often migrate to the cloud without implementing the necessary measures to optimize their cloud investments, leading to cloud wastage and inefficiencies. Without automated monitoring and optimization processes, organizations may miss opportunities to identify and address cost optimization opportunities in real time.
- Insufficient Expertise: Lack of in-house expertise can contribute to cloud wastage. The cloud is complex and constantly evolving requiring a certain level of knowledge and expertise to manage effectively. An organization lacking the necessary skills or experience to manage cloud resources can lead to inefficient resource allocation, misconfiguration, and poor optimization, resulting in cloud wastage.
Discover Strategies For Cost Optimization In Cloud Computing
- Right-Sizing Resources: By right-sizing resources based on actual demand, businesses can avoid paying for unused resources, optimize performance, and reduce costs. The flexibility to scale up or down as required helps better control the cloud bill.
- Automation and workflows: Automation and optimization tools provide insights into resource utilization, performance, and cost patterns, helping businesses make data- driven decisions. By regularly monitoring and analyzing cloud usage and performance metrics, organizations can identify opportunities for optimization and implement changes accordingly.
- Expert Support & Advice: Cloud service providers help you understand your cloud expenses, optimize workload costs, and control your spending. Their specialists can offer various tools, services, and recommendations that help businesses optimize their cloud costs. By leveraging these resources, companies can gain insights, automate processes, and make informed decisions to optimize their cloud spending.
If you want to maximize the value of your cloud investment, partner with a cloud service provider who can help you identify and address areas of cloud wastage, implement automation, and leverage best practices to meet your business requirements.