A Look into the Most Common Reasons behind Cloud Cost Wastage

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A Look into the Most Common Reasons behind Cloud Cost Wastage

The decentralized, dynamic, unpredictable nature of cloud usage, in many instances, adds up to the cloud cost wastage – and this needs to be controlled and minimized

Along with the decentralized nature of cloud usage, there are quite a few characteristics of cloud usage that leads to waste. Lack of business objectives and clarity on the strategies remain one of the crucial factors. Many companies just run behind cloud adoption to match up the industry expectations or to catch up with the competition. In a few cases, the companies are not actually well-prepared for such adoption – and that is where the cloud spend wastage rises from.

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Resource owners lack full visibility into cost implications – During the time of provisioning, resource owners often lack complete clarity into what their applications will actually cost in the cloud. While a SaaS costing basis could seem low, the full impact when they run cases for days, months, or years, is felt later. This limited visibility about the costs can easily be aggravated during the agile development processes when teams tear down deployments and QA. If automated scripts and templates are used, instances can be overprovisioned repeatedly, resulting in a continual recurrence of wasted cloud costs. And once applications start running, resource owners may not receive regular reporting that enables them to see the associated cost implications of this overprovisioning.

Sophisticated cloud pricing options – Cloud pricing seems simple on the surface – a cost per GB data/month or an hourly charge for storage—the reality is that there lies a dizzying array of options to choose from. There are thousands of prices for virtual machines to choose from, even across the three leading cloud providers. In addition, there are significant price differences regionally in which they run.

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Lack of automation, leading to less optimized workloads – Optimization has emerged as an ongoing challenge in the enterprise. Even post such wastage is identified and resolved – the cloud’s dynamic nature means that such wastage might reoccur. Automation is crucial to monitor and respond to the wastage dynamically. For cloud governance teams to assure cost-efficient cloud usage, need automated tools that collaborate across all of their cloud resource pools. It is essential to identify specific areas of wastage to collaborate with resource owners to particular automated action.

After analyzing all these factors, enterprises need to plan their cloud budgets and to spend to minimize wastage judiciously.