Navigating Rising Costs Through Intelligent Cloud Strategies
Organizational leaders seek smarter cloud strategies amidst complex macroeconomic environment. Learn cost optimization techniques and enhance cloud efficiency.
It is the start of the month, and the CFO just got another higher cloud bill. Again -- as many times before -- it reached the highest level exceeding the forecasted budget.
Sounds familiar?
Every organization has a similar story. Cloud costs are increasing because organizations often fail in optimizing their cloud infrastructure and end up spending extra on cloud services. According to a McKinsey Report, cloud spend is growing 20% to 30% annually.
With the macroeconomic environment becoming increasingly complex, organizational leaders, CIOs, CFOs, and CTOs are looking for smarter cloud strategies to optimize their cloud costs. Let’s explore eight cloud strategies to navigate higher cloud cost cycles without compromising security and performance.
1. Embrace the multi-cloud approach
Instead of putting all eggs in one basket, diversifying cloud infrastructure by incorporating a multi-cloud hybrid approach can save costs. Distributing workloads across cloud providers allows organizations to benefit from competitive pricing and feature sets offered by different providers. Thus, embracing a multi-cloud approach can lower cloud costs while delivering flexibility, resilience, and mitigating vendor lock-in.
2. Optimize resource allocation
Optimizing resource allocation is one of the key principles of adopting smarter cloud strategies. This involves right sizing your infrastructure to match the organization’s actual usage needs. Conduct regular audits to identify unutilized resources and decommission them to eliminate unnecessary costs. Additionally, leverage the tools and services offered by cloud providers to optimize infrastructure and ensure efficient use of compute, storage, and network resources.
3. Implement cost monitoring and governance
It is quite challenging to control costs effectively without proper visibility into cloud spending. Implementing robust cost monitoring and governance practices allows organizations to track spending across various cloud services and identify cost drivers. However, organizations can also use cloud-native tools to gain visibility into their spending, enforce cost policies, and optimize resource utilization.