Cloud Cost Management | Maximize the business benefits of cloud | Take control of your cloud cost
With cloud cost management, you will SOLVE one of the BIGGEST challenges of public cloud.
You are at the RIGHT PLACE to take control of your cloud cost and maximize the business benefits of your cloud computing.
On this page, you will find THE information you need to take control of your cloud costs.
After reading this article, you will reduce your cloud waste and maximize the business outcomes of your cloud computing.
- What is Cloud Cost Management?
- Why is Cloud Cost Management crucial?
- The challenge to manage your cloud costs
- Cloud cost management best practices
- Take control of your cloud costs
- Cloud Cost Management tools
- Cloud Management platform
- Cloud Cost Management software
What is cloud cost management?
Cloud cost management is the management of your cloud costs to maximize the business benefits of cloud computing.
Making cloud cost isn’t bad if the benefits are good.
Cloud cost management is the processes, procedures, tools, and governance to take control of cloud costs.
The processes consist of; planning the required resources, estimating the related costs, budgeting these costs to cost centers, and control of your cloud costs.
Read more in the blog What is Cloud Cost Management?
I assume you know as well how easy it is to start resources on public cloud.
Why is cloud cost management CRUCIAL?
There are SEVERAL REASONS why cloud cost management (or cloud financial management) is important.
Let’s start with the most obvious one.
You run a business, so you want to make sure that these costs will deliver as much business value as possible.
The other reasons why you want to manage your cloud costs are:
- Applications on cloud are used by the entire organization, so the impact of managing your cost is BIG
- The monthly spend on cloud computing within organizations often exceeds 5-figures and is growing
- Starting resources, and so the costs, in the cloud is SO EASY. You knew this one, hah?
Do you know that:
- 30% of cloud spend is wasted
- In 2024, 80% of companies will overspend 20 to 50%, because they are unaware of their mistakes in their cloud management.
No worries, you are in the RIGHT PLACE to take control of your cloud costs.
The challenge to manage your cloud cost
Ok, now you understand what cost management of cloud is and WHY it is important.
Lets do it!
I love that attitude.
Just start running is NOT the right way to do it.
Make sure you are aware of the below challenges to manage the spend of cloud:
- Cost reporting and billing of the cloud providers is IT focussed and not easy to understand. Do you (want to) know which database resources delivered which value for your business?
- The amount of cost data is HUGE and takes a lot of time to process.
- The management of cloud cost with multi-cloud is almost IMPOSSIBLE because the cloud providers have different naming conventions and way of cost reporting.
So what are the best practices to manage cloud spend?
Cloud Cost Management best practices
Besides the processes of planning, estimating, budgeting, and controlling your cloud costs organizations use the BEST practices like; focus on business value, governance, cloud cost optimization etc.
Focus with your cost management on business value
Cutting cost is easy!
Just stop all your resources in the cloud, and you are done.
I am sure that if you do this, your BUSINESS has been stopped as well.
As stated before.
Making cloud cost isn’t bad if the business value is good.
So focus on BUSINESS VALUE with your cloud cost management.
Reduce your waste, so resources that don’t deliver value, and spend more, if needed, on resources that grow your organization.
The governance of cloud financial management
Cloud computing involves the entire organization, the monthly cloud spend is often => 5 figures and multi-cloud is the rule rather than the exception.
Because of that, you need to have EFFECTIVE governance of cost management for cloud.
Cultural practices like FinOps can help you to organize your cloud cost management.
FinOps focuses on business value and brings financial accountability and awareness to the people who really use the cloud.
optimization vs management
Cloud cost optimization versus Cloud cost management
Cloud cost optimization should be part of your cloud cost management. Cloud cost optimization is the optimization of the resources that you use.
Common possibilities to optimize your cloud costs are; over-provisioned resources, unused assets, data not stored in the most optimal place, lack of automation, and organizations not taking advantage of discounts.
As mentioned in the previous paragraph, you should focus on your BUSINESS. So manage your cloud cost from a business perspective and focus on VALUE STREAMS. Spend your money on the resources that deliver the most business value.
Cloud management is taking control of your cloud costs
Cost Management starts with getting INSIGHTS.
Start with organizing your cost data via tagging. Collect your multi-cloud data and aggregate it to one overview. Assign cost to business entities.
With the above insights, you can gain CONTROL
Create the views of your (multi-cloud) cost data which you need to gain control of your cloud spend. Make sure the unassigned cost gets an owner. Partially assign shared costs to the relevant departments.
If you have control you can start OPTIMIZING.
You have the insights and control. Now your teams can start optimizing their cloud spend by reducing cloud waste.
The right Cloud Cost Management tools to manage cloud
If you know WHAT you want to achieve, WHY, you can start selecting the BEST cost management tools for your BUSINESS NEEDS.
Using the NATIVE public cloud TOOLS can be a good FIRST STEP. With these tools, you can START getting insights. These tools are IT-FOCUSED and offer basic functionality, so you need more.
Cloud Management Platforms are not specialized enough in cloud cost management, too expensive, and not flexible.
Many organizations choose BEST-OF-BREED cloud cost management software.
Why not use a Cloud Management platform to manage your cloud cost?
There are multiple broad general-purpose Cloud Management Platforms (CMP’s) on the market.
The question is? Are these CMP’s really the BEST MATCH for your cloud cost management NEEDS?
The CMP’s are BIG, monolithic applications that deliver many functionalities, but are not specialized in a certain area. BIG applications, BIG organizations which aren’t flexible.
There is a shift in interest from these CMP’s to BEST-OF-BREED tools that have a focus on deeper functionality in Cloud Cost Management.
These Cloud Cost Management solutions have THE BEST functionality, for the BEST PRICE. You have MUCH MORE flexibility with these smaller applications and smaller organizations.
Maximize the benefits of your cost with BEST-OF-BREED Cloud Cost Management Software
With BEST-OF-BREED cloud cost management software, you REDUCE the time-to-insights ENORMOUS.
With the C-Facts Cloud Cost Management software, you will MAXIMIZE the BUSINESS benefits of cloud computing and REDUCE your cloud WASTE.
With C-Facts, MULTI-CLOUD data will be automatically retrieved and aggregated.
Manual steps aren’t needed anymore.
You can (partially) assign your (shared) cost to BUSINESS entities. Manage your unassigned costs. You can make multiple views of your single source of cost data and SHARE these with the ACCOUNTABLE people.
So, the BEST functionality, in only 2 days up-and-running, a User Interface that is SO EASY and EFFICIENT for the BEST value for money.
Please contact us, so we can help you to MAXIMIZE the BUSINESS VALUE of your cloud spend.