Four Cloud Strategies to Avoid Cost Overruns

Four Cloud Strategies to Avoid Cost Overruns

Almost every firm that employs public cloud services, which is nearly every company at the present moment, has encountered an unexpectedly inflated bill at some point. Unfortunately, experts predict that the condition will worsen before improving.

Cloud computing has helped make data processing resources available to businesses of all kinds and scales, which were before unimaginable. Every company has access to practically limitless computing, networking, and storage resources. However, with nearly endless resources comes the possibility of unlimited expenditure.

According to Gartner, 60% of Infrastructure and Operations (I&O) leaders will experience public cloud cost overruns that will have a detrimental impact on their on-premises budgets by 2024.

Here are a few strategies on how IT managers can keep their cloud expenses under control.

Prepare migration plans

Cost savings from cloud migration are only possible if the cloud-based solution is efficient. If the new cloud-based system (or the migration process) has problems, it can result in significant cost overruns, which is why migration planning and performance analysis are critical.

Businesses can track and twist their initial strategy as they proceed by measuring Key Performance Indicators (KPIs) and noting unsatisfactory performance. Enterprises can only benefit from a cloud-based system if they can utilize the practical benefits that come with it.

Also Read: The Importance of Flexible Cloud Strategies

Good asset management

End-user departments are spending a lot of money on the cloud since it’s so easy to access cloud resources without even informing IT. Unfortunately, this cloud investment eventually finds its way into corporate IT budgets. The CEO and the board of directors may become worried about total IT spending at some time.

IT will never be able to remove users’ shadow IT expenditures. Still, it can develop a corporate-wide IT asset management system that can detect new services as soon as they become available. Surreptitiously used services, as well as their charges, are immediately visible in this manner.

Continuously monitor the situation

This is intriguing since it isn’t immediately evident why constantly monitoring the migration duration can affect costs. Most businesses have sensitive information that they would want to keep private. This might include everything from trade secrets to confidential financial information. It might also be employee information or anything else that isn’t meant for public (or rival) consumption.

A hacker might steal this sensitive data and force the firm to ransom, exploit the information for their own (or their company’s) advantage, or cause havoc as an act of malice or vengeance by erasing the data if the cloud transfer goes wrong. The ransomware attack, which encrypts information until a cryptocurrency ransom is paid, is a current security danger. Businesses may not realize their critical data has been accessed until it is too late if a hacker is sneaky.

Finance should be included

When companies undertake cloud Return On Investment (ROI) cost modeling, finance is exceptionally skilled at deciphering complicated cost formulas and assisting with the extrapolation of predicted expenses. IT, on the other hand, isn’t very good at it. Engaging finance’s assistance in estimating cloud expenses is beneficial to firms.

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Umme Sutarwala is a Global News Correspondent with OnDot Media. She is a media graduate with 2+ years of experience in content creation and management. Previously, she has worked with MNCs in the E-commerce and Finance domain