Blog
Tags:
Governing your cloud: from cost to strategic advantage
This week I'm helping a SAAS provider get the environment they provide to customers in order. They are very cost-conscious, but in the forest of options offered by the cloud provider, they are finding it difficult to determine which options to choose in order to deliver a good service without costs going through the roof. Keeping your costs in check is proving more difficult than simply browsing the provider's price list.
Governing your cloud environment goes beyond just managing resources - it's about strategic IT governance. Without clear governance, the cloud can grow imperceptibly into an uncontrollable cost factor, when it should be an engine for innovation and efficiency.
Many organizations are struggling to get a handle on their cloud spending. I hear and read about it more and more. And it's good that we are having the conversation about this with each other. Because there really is room for improvement. Portals of cloud providers offer mountains of data, but lack the steering information needed to control costs and maximize returns. The result? Invoices that continue to grow, without clarity on where the money is going or which investments really add value.
Being in control means keeping control: having insight into what you use, which expenses contribute to your business strategy and where optimization is possible. In this article, I'll show you how to get cloud costs under structural control and how a smart governance approach ensures maximum value from your IT investments.
The pitfalls of cloud costs: keeping a grip on returns
The cloud offers unprecedented flexibility and scalability, the very reason most companies choose this strategy. But that convenience has a downside: costs can spiral out of control at lightning speed. Whereas with traditional IT spending you often have clear contracts and budgets, the cloud operates on a pay-as-you-go model. This seems advantageous, but it is precisely where hidden costs accumulate.
An extra virtual server here, some extra storage there - it seems harmless, until the monthly bill arrives. Often you're paying for resources that aren't being used optimally, over-provisioned services or services you don't use at all. Think of applications running outside working hours, databases in constant use when they shouldn't be, or storage growing unnecessarily without any added value to your business goals.
Even more dangerous to your budget are costs that don't or no longer contribute to your bottom line. Without keen oversight, you're paying for things that no longer have a direct link to your business strategy. The result: waste and an ever-shrinking ROI.
Managing cloud usage is essential to avoid these pitfalls. Only with insight into what you actually use and what it delivers will you keep your cloud environment efficient and cost-conscious. Otherwise, the cloud turns from a powerful tool into a financial burden that also inhibits your growth.
So what's a proper technical implementation?
Any technical implementation, no matter how promising, must ultimately contribute to your bottom line. But what makes a technical implementation a really good one? Cost plays a crucial role in this. Whether it involves new software, hardware upgrades or a cloud migration, without a keen eye for both the investment and the return, you run the risk of your IT expenses becoming a bottomless pit.
A good implementation starts with the question: what will it yield? Think beyond the initial costs. Which processes become more efficient? How much time will you save? How will it help your organization achieve revenue growth? These are the questions that determine whether an investment is really worthwhile. Only a positive ROI (Return on Investment) justifies the expense.
In addition, hidden costs are a pitfall that is often overlooked. This is logical because the transition to the cloud involves quite a bit of thought: Licensing costs, maintenance, upgrades and employee training can add up quickly. What do you really need? Direction. Without clear direction, you'll lose oversight and likely pay more than necessary. It is essential not only to monitor the immediate costs, but also to include the long-term impact in your decision-making.
Of course, a technical implementation is not an end in itself, as we all know. It is a means to achieve business goals. But it does require direction, and that is often overlooked. Making sure you have the numbers in focus, so that each investment is not only worth the cost, but also makes a measurable contribution to your success, that ... is a really good technical implementation.
Why cloud portals won't help you control costs
Cloud providers offer comprehensive portals full of data about your usage. You'll find reports, charts and overviews of what you use. But however detailed that information may seem, strangely enough it hardly helps you get a grip on your costs. In fact, the portals are often designed in such a way that real control information is missing.
After all, cloud providers have no interest in your cost reduction. Their revenue model revolves around your growing expenses. The more you use - often unconsciously - the better for them. It is therefore no surprise that in their portals you will not find clear tools to recognize over‑provisioning, eliminate unused resources or optimize inefficient use.
What you do get is a mountain of data that you have to interpret yourself. A lot is shown about what you use, but rarely about what you shouldn't use. And without the proper context or expertise, it's hard to determine where you can save without compromising your performance.
Cloud providers give you the keys to their services, but not to control your costs. If you want control, you have to take charge yourself by creating the right insights. Only then can you make the most of your cloud environment, without unnecessary waste. More and more companies are realizing this, and we have developed something that solves all of this at once, exactly for that reason.
Get in control of your cloud costs with Cloud Cost Audit™ and Cloud Cost Optimizer™
Managing cloud costs doesn't have to be opaque. With our Cloud Cost Audit™ and Cloud Cost Optimizer™, you not only get insight into what your cloud is really generating, but also the tools to optimize your spending without risk. No cobbled data, but concrete management information that you can use immediately.
The Cloud Cost Audit™ reveals where your cloud budget is going and what the real business value of that spending is. Which applications or resources actually contribute to your business goals? And where is money being lost to inefficient use, overprovisioning or hidden costs? The result is a crystal-clear overview that shows how your cloud environment is performing relative to investment and where you can make immediate savings. we almost always find 20%-30% savings.
The Cloud Cost Optimizer™ takes you one step further. This is your key to making your cloud environment smarter, leaner and more cost-effective. You'll receive steering information and practical recommendations that allow you to reduce costs without compromising performance or security. No risk, no guesswork-only results.
Together, these tools will help you gain control of your cloud costs and maximize the impact of your cloud environment on your business goals. Say goodbye to waste and hello to control and efficiency!
So far, every organization that has opted for the Cloud Cost Audit has recouped its investment within 3 months. If that's not a reason ... ;)
Take the first step toward getting a grip on your cloud costs today!
Want to know where your cloud budget is really going and how to save without risk? Request a Cloud Cost Audit™ now and receive crystal clear insight into your expenses and opportunities to optimize. No more waste, only maximum value from your cloud environment.
Click below and discover how your organization can immediately benefit from a more efficient cloud!