Cloud cost management is the management of your cloud spend to maximize your business benefits.
That goal of “maximizing the business benefits” is important. Making costs isn’t bad if the benefits are good.
Cloud cost management is the processes, procedures, and tools to manage your cloud cost.
It exists of:
- Planning – identifying the cloud resources required for an application, project.
- Estimating – quantifying the costs associated with all required/planned cloud resources. Every cloud provider has its own pricing calculator.
- Budgeting – allocating the costs to a certain application/project. Allocating your cloud resources via tagging in the cloud is an important task of budgeting. Besides this tagging you want allocate costs to more business entities like; departments, projects or applications.
- Control – control is all about:
- Getting insights – getting the right business insights so you can make business decsions.
- Gain control – by getting insights you are gaining control in what you have an what you need.
- Start optimizing– now you have control you can start optimizing and improve your business benefits. Please also read blog how to manage your cloud spend.
With optimizing you want to reduce your cloud waste.
You want to make sure you only pay for cloud resources that deliver business value.
Remember? You want to maximize the business benefits of your cloud computing.
Besides the “what” is cloud cost management, we want to share the “why” of cloud cost management.
Cloud Cost management – why?
We want to make sure you will follow up on cloud cost management because it is crucial for the success of your cloud computing.
There are several reasons why cloud cost management is important:
- Cloud computing involves the entire organization so the impact is big.
- The amount of monthly cloud spend wihtin organization exceeds often 5-figures.
- The cost reporting and billing fo the cloud providers is IT focussed and not that easy to understand.
- Resouces, and so the costs, of cloud computing can be started with a few clicks. It is pay-per-use so everything you start, you pay for.
- Multi cloud is often the right strategy but makes the management of cloud costs even harder. Alle cloud providers have their own way of cost reporting and billing.
If you don’t manage your cloud cost you will waste money.
I mean “manage”, so you really need to organize it. With the right governance, cloud cost management software etc.
A few numbers about the “why” of cloud cost management
- Research shows that through 2024, 80% of companies will be unaware of their mistakes in their cloud adoption and will overspend by 20 to 50%.
- Flexera – 30 percent of cloud spend is wasted.
Managing your cloud cost increases your margin and in these days of sustainability, you shouldn’t waste what ain’t necessary.
Hopefully, we gave you also some input “why” cloud cost management is important.
Get insights, gain control and start optimizing! Today!
Please feel free to request a demo or trial of the C-Facts best-of-breed cloud cost management software to maximize the business benefits of your cloud computing.