Like it or not your business is very likely multi-cloud. Public cloud infrastructure such as Amazon Web Services (AWS), Microsoft Azure and/or others, Private cloud infrastructure, and Cloud software as a service (e.g. Salesforce).

A recent Forrester survey identified that 92% of 1146 organisations – that utilised public cloud IT infrastructure – used more than one vendor, with 17% having more than ten.

Staying on top of cloud usage and cost is critical to avoiding spending surprises, waste and inefficiency. Without it cloud spending may accelerate unnoticed, leading to budget and resource constraints. Poor decisions are made based on providers pricing without accounting for the full cost of related on-premise support, and cloud consumers have no incentive to curb or control spending, leading to overspending
and sprawl.

Moving from accidental cloud cost adoption to strategic IT cost management.

The first step is to understand what you have:

  • Map cloud costs to a strategic cost framework of IT Services on and off premise for full analysis and comparison.
  • Understand the full IT stack of technology and services (Computer, Application, Storage, Network and Delivery) and their respective costs as it is this detail that provides insights.
  • Map how these IT costs relate to the business processes, functions, departments and strategic initiatives so that cost management decisions are business focused and strategic in nature.

Then use this information to strategically manage direction and cost:

  • Proactively manage public cloud consumption and make more informed decisions about cloud usage and purchasing, using analytics to monitor spending and other associated costs like labour and support.
  • Use the metrics and appropriate expertise to investigate anomalies.
  • Make room for an independent, value engineering viewpoint on cloud adoption projects.
  • Develop management forums and processes so that cloud adoption and IT cost management decisions are business focused.
  • Drive shared accountability between business units and IT for technology spend.

Get in touch with us today to learn more about our business cost management.

Article by: Michael Hully