10 Tips for Managing Cloud Costs - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud
News
7/10/2018
08:00 AM
Cynthia Harvey
Cynthia Harvey
Slideshows
Connect Directly
Twitter
RSS
E-Mail
50%
50%

10 Tips for Managing Cloud Costs

Cloud cost management is a key pain point for enterprises, but these expert tips can help optimize your cloud spending.
Previous
1 of 11
Next

For enterprises, managing cloud costs has become a huge problem.

In the RightScale 2018 State of the Cloud Report, 80% of enterprises surveyed cited managing cloud spend as one of their key challenges. And, the more experience organizations had with cloud computing, the more likely they were to point to costs as an obstacle.

Part of the reason why cost management is so challenging is because organizations are spending a lot of money on public cloud services. More than half of enterprises (52%) told RightScale that they spend more than $1.2 million per year on clouds services, and more than a quarter (26%) spend over $6 million. That spending will likely be much higher next year, as 71% of enterprises plan to increase cloud spending by at least 20%, while 20% expect to double their current cloud expenditures.

Given those numbers, it's unsurprising that Gartner is forecasting that worldwide public cloud spending will "grow 21.4% in 2018 to total $186.4 billion, up from $153.5 billion in 2017."

Another problem that contributes to cloud cost management challenges is the difficulty organizations have tracking and forecasting usage. The survey conducted for the SoftwareONE Managing and Understanding On-Premises and Cloud Spend report found that unpredictable budget costs was one of the biggest cloud management pain points for 37% of respondents, while 30% had difficulty with lack of transparency and visibility.

Similarly, 40% of the IT decisionmakers surveyed for the 451 Research Voice of the Enterprise: Cloud Transformation, Organizational Dynamics report said that cost savings was one of their primary motivations for moving to the cloud. However, after their cloud migration, 53% said that cost and budget were still a key pain point for them.

In order to eliminate these pain points, enterprises are looking for ways to better manage cloud costs. In the RightScale survey, 58% of respondents said they planned to optimize cloud costs in 2018, making it the number one cloud initiative for the year. A Forrester Report found that 45% of enterprise IT decisionmakers surveyed have taken steps to reduce cloud spending, and another 37% have projects in the works.

So what steps should these organizations be taking? The following slides detail 10 tips that experts, such as analysts from organizations such as Forrester, Gartner and 451 Research, offer for managing cloud costs.

Image: Pixabay
Image: Pixabay

Cynthia Harvey is a freelance writer and editor based in the Detroit area. She has been covering the technology industry for more than fifteen years. View Full Bio

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Previous
1 of 11
Next
Comment  | 
Print  | 
More Insights
News
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Commentary
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
Slideshows
Top 10 Programming Languages in Demand Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  4/28/2020
White Papers
Register for InformationWeek Newsletters
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Slideshows
Flash Poll