6 Best Practices For Cloud Cost Management

6 Best Practices For Cloud Cost Management

Cloud computing is a great option for business units that need to meet their mandates because of its ease of provisioning and integration into enterprise data. There is no way to control cloud usage without a strong hand. Many organizations are discovering that mega-scaled architectures can quickly disrupt their business and financial models.

Markets and Markets recently conducted a survey that showed that cloud computing growth is continuing to grow and is unlikely to slow down. The market was valued at $445 billion in 2021. It is projected to rise to $947 billion by the middle of the next decade. Organizations will continue to look to managed service providers (MSPs), value-added resellers, and outside cloud providers for their data center management needs.

Enterprises need to take control of their cloud. As more stakeholders and providers participate, and infrastructure becomes more dispersed and difficult to manage, Businesses can be unable to access data quickly and without an efficient means of recovering lost or stolen data. This could have unexpected and potentially disastrous consequences for the business model.

What can an enterprise do to get the best out of cloud spending? Can cloud spending be kept simple, scalable, and cost-effective without losing control? These are five ways you can square the circle.

6 Best Practices For Cloud Cost Management

1. Make a Plan

Enterprises often use the cloud without understanding what they want to achieve and how to make sure it meets their business goals. In reality, most cloud deployments are carried out by business units that seek short-term goals such as increasing quarterly sales or producing financial reports. Chaos can quickly ensue as no one is attempting to harness the cloud in a coordinated fashion. The IT department, which is responsible for managing infrastructure, is often left out of the loop.

A plan that guides cloud usage in both operational and strategic terms will not only produce a better cloud but also avoid many of the problems that can arise with migration, provisioning, and other critical tasks. The first step in this direction is to assess the anticipated needs, skills, and procedural guidelines. This will help to avoid any potential hiccups.

It is also important to have a clear understanding of the shared responsibilities of all parties. This should be stated in the relevant service levels agreements (SLAs), and key performance indicators.

Also read: What are the Ways to Manage Data on the Cloud

2. Audit Your Resources

One of the best ways for controlling costs is to monitor resource consumption relative to workloads. The cloud-based instances that are 40% too large are estimated to be 40%. Monitoring resource usage helps balance load across the environment and gives insight into which systems can be decommissioned without affecting overall performance.

Continuous monitoring is a key component in auditing the environment. Continuous monitoring is crucial due to the rapid pace at which data moves, and the smaller margins that have developed in response. Real-time analysis and assessment of the entire data environment are vital.

3. Ensure Proper Governance

Governance goes beyond rules and oversight. Optimize the entire data stack from infrastructure design to application monitoring, security development, and programming, it requires coordination among multiple stakeholders.

Governance is also directly linked to the main benefit proposition of cloud computing – low cost and large scale. It provides the ability to track individual services and projects’ cost-benefits, which allows it to guide support providers to provide the best possible service. Governance can also be used to guide future deployments and ensure that they don’t exceed operational requirements.

4. Understand the Costs

Cost increases are not always bad. To balance revenues and operational costs, it is important to properly match growth with cost. Sometimes upfront costs are necessary to drive growth that will result in greater profitability over time. This cycle must be managed effectively by having a way of measuring not only costs as they occur but also the value they bring to the business model.

This principle is not affected by the cloud. Sometimes, it is cheaper to house a service on-prem than to provision an IaaS environment. Sometimes, both can work together to provide maximum flexibility and control.

Also read: Cloud Data Warehouse: What it is, Why it Matters, and Best Practices

5. Take advantage of cloud savings

Cloud providers often offer discounts or other ways to reduce costs. However, only a small percentage of customers actually take advantage of these offers. This results in billions of unnecessary cloud costs.

Cloud discount programs allow for more flexibility in scaling because they provide significant capacity that can be increased or converted completely to an on-demand consumption model at certain load thresholds. These discounts are usually only available to those who have a long-term commitment.

6. Innovation and savings

It’s difficult to imagine an IT architecture that doesn’t incorporate the cloud in a significant way. Enterprise executives need to focus on maximizing the IT budget’s value, not just “putting it in there”. But cost optimization cannot be achieved without having the ability to gain insight into data infrastructure operations.

It is no longer enough to simply throw technology at a problem, hoping it will go away. Only those who maximize the value of their businesses will thrive in the future.

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