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Can I achieve cost savings from cloud computing?

Expected cost savings from cloud computing are reducing capital expenditure for: 

  • Data centers – power, cooling, rack space, etc.
  • Hardware – physical devices, like servers
  • Software – licenses for software
  • Staff – for maintaining your infrastructure

You don’t have to size your infrastructure for temporary demand when using the public cloud.

Using cloud computing for cost savings is similar to hiring a cab. Instead of investing in a car, you just take a cab, so you reduce your costs substantially. You only pay for a car if you need it.

Pay-per-use and cloud take away many activities that have been done by your IT people. Many operational tasks are now managed by the cloud, and you only pay for resources if you have used them.

What else do you require? Did you ACHIEVE your cost savings?

The question is if the main strategy for cloud computing for your organization is cost savings.

Saving costs and/or …

Take the other goals of cloud computing into account in your cloud strategy. Other goals can be; increase the speed of innovation, reduce time-to-market, improve availability, continuity, scalability, and productivity.

Yes, costs are important, but maybe not the only reason why you want to move to the cloud.

The above goals can also deliver some cost savings

Do you take THESE cost savings into account as well?

And there is more …

It depends on your business needs and the related resources if cloud computing will save money.

Think of an environment that requires a certain kind of performance with a pretty steady load.

Is cloud computing the most cost-efficient solution here? Or is maybe dedicated hardware cheaper and with better performance?

Compare the wins with the losses when determining the cost savings with cloud computing. 


Like every success, you need to work for it to get the results. 


Using cloud computing also introduces the RISK of making UNWANTED costs.

If you don’t pay attention to your cloud cost management you can say BYE, BYE to your cost savings.

With single cloud, cost management can already be challenging, but with hybrid – or multi cloud it is even becoming more complex.

Research shows – 30 percent of the current cloud spend is wasted and in 2024, 80% of companies will overspend 20 to 50%, because they are unaware of their mistakes in their cloud management.

To make sure you will achieve your expected cost savings you need to make sure you have the right strategy and adoption plan.

ONLY with the right research, implementation plan, and organization of activities, your cloud strategy will be successful with your cost savings.

The unexpected costs can arise because of :

  • The pay-per-use model, in which you can start resources with a click. What if you start them, but don’t stop them?
  • Cloud cost management is not organized like with FinOps.
  • Security in the public cloud can be time-consuming and so expensive. Especially if you don’t take for granted that the measures in the public cloud are sufficient.
  • Compliance to meet the constantly changing regulation. It can be hard and expensive.
  • The need to hire people with the right skills, because you don’t have the capabilities to manage the cloud and these capabilities are scares.
  • Cloud Operations is not sufficiently organized.

Take the right measures for the above risks!

ONE more thing!

Cloud computing is also a service with demand and supply, as every market. 

Prices of cloud computing can rise if there is more demand, like with COVID pandemic.


Cost savings can be one of the goals to use a cloud strategy. Make sure you research the pros and cons of cloud computing in your context. If you want to achieve cost savings with cloud computing, make sure you take the measure against unexpected costs.
If you already use cloud computing make sure you optimize your cloud cost by answering these questions.

Maximize the business benefits of your cloud computing!

Request your DEMO or TRIAL of the C-Facts best-of-breed IT cost management software TODAY!

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