With the revenues of many businesses now suffering from the pandemic, many organizations try their best to limit costs. The promise of reduced costs and agility is driving organizations to heavily depend on cloud computing to help with their digital transformation journey. But, they continue to get sticker shock when they move workloads and applications from on-premises to the public cloud.
Many businesses that once looked to the cloud as a way to limit data center expenditures are now beginning to wonder why they are not saving as much money as they expected. As cloud adoption rises, so does cloud “sticker shock.” With significant concerns about cloud spending on the rise, many businesses continue to struggle to find ways to contain it.
As per Flexera’s ’2020 State of the Cloud Report’, businesses are struggling to accurately manage cloud spend. Organizations reported they overspent on their cloud budget by an average of 23 percent, and cloud spend is projected to increase by 47 percent in 2021.
A recent survey from the FinOps Foundation shows a massive public cloud spend and the struggle to contain and optimize it. Nearly half of survey respondents (49%) had little or no automation of managing cloud spend.
Cloud Cost Management
With companies seeing the cloud as a significant shift away from traditional ways of managing IT equipment and services, decreasing budgets should not stop them from taking advantage of what the cloud has to offer. To stay within their spend estimates, businesses need to look at where they can control or save money, like minimizing spend on cloud connectivity.
The rise of cloud service providers has meant that businesses are now able to take a hybrid approach with their IT infrastructure using private and public cloud systems, in addition to on-premises infrastructure. In order for companies to make the most of the cloud, they need to ensure they have the required flexibility in their network connectivity and can connect to the cloud depending on business-specific requirements and workloads at any time.
A more traditional approach to network connectivity results in businesses stuck in rigid infrastructure and an inability to scale up with demand with multi-year contracts. To truly reap the advantages that come with the elastic cloud model, organizations need a solution that helps them optimize network connectivity in an equally flexible manner.
Reducing Cloud Spend with NaaS
Another major challenge IT departments face when it comes to reducing cloud spend is data-egress fees. Cloud-egress charges -the cost for data leaving the cloud provider – account for a big chunk of cloud expenses during massive spikes in sustained traffic and end-user consumption.
A Network as a Service (NaaS) platform can help organizations with the connectivity and data egress challenges that allow them to fully reap the benefits of the cloud. This signifies that organizations can scale network connections at any time, enabling them to save costs and enhance connectivity performance for each of their cloud resources. Moreover, it can help businesses avoid long-term contracts and pay one-time charges for set up fees. It will also minimize their dependence on implementation teams to deploy on-going direct connections to cloud services. Taking this approach also means businesses can significantly cut down data egress costs.