In a climate of rising costs, industry giants have raised the prices of their cloud services, prompting CIOs and CFOs to seek strategies to manage this ‘cloud-flation’ and avoid unexpected high costs.
– Grasping Cloud Economics Impact:
The escalating cost of cloud services demands a strategic approach to cost optimization. With scalable technologies and variable pricing, cloud costs can escalate quickly, sometimes due to less visible factors like shadow IT or unsanctioned application purchases.
Implementing cloud cost management strategies, such as the FinOps framework, helps manage expenses effectively. This involves a thorough inventory of current services, costs, and usage, aiming for long-term financial sustainability in the cloud.
– Tackling Cloud-flation with Cost Avoidance:
The second strategy involves minimizing expenses for contracted services. This requires a deep dive into available discounts and a thorough understanding of cloud pricing models. It’s essential to uncover hidden IT expenditures and standardize tool usage.
Leveraging AI and FinOps tools for real-time monitoring and scenario analysis can further help in identifying cost-effective solutions and optimizing service provider choices.
– Proactive Approach to Cloud-flation:
Instead of reacting to high cloud bills, proactive governance of cloud costs is recommended. Developing systems for cost monitoring and control, including setting up alerts for cost thresholds, is key to managing expenses effectively.
In summary, to navigate the current landscape of increasing cloud service prices, a combination of understanding cloud economics, proactive cost management, and leveraging modern tools like AI and FinOps is essential.
These strategies can empower businesses to optimize their cloud spending and maintain financial health.
We specialise in this area to bring control and automation to your cloud costs to avoid over-provisioning and thus unnecessary environmental impact
Ben.
Ben Lowe, CEO & Founder, Lighthouse
