Now’s the Time to Optimize Cloud Costs: Here’s How

Companies are generating and contending with more data than ever before. Unsurprisingly, cloud costs have become challenging to manage due, in part, to this massive influx of data. According to our Enterprise Cloud Index, the vast majority (85 percent) of organizations report cloud cost control as a challenge within their company. Further, 30 percent say they’re “very concerned” about cloud costs in relation to their IT budget for the coming year.

When done right, cloud can provide significant benefits such as on-demand capacity, simple scalability, and agility. For applications and workloads that have high variability in their resource needs over time, cloud can deliver significant business value. On the other hand, the cost of that flexibility generally gets harder to justify for the vast majority of workloads that change at a slow, predictable pace. The problem is that many companies have been so hyper-focused on getting to the cloud—at any cost—that they’ve often neglected to consider how best to optimize their investments.

In a mad dash to get to the cloud and figure out the details later, organizations have found themselves in a tough position: they’re not experiencing all the benefits they expected from cloud (conversely, they’re oftentimes incurring additional costs and complexity) and then have to start making reactive decisions to right the ship. To avoid this, it’s critical that companies start seeing the cloud as an operating model versus simply a destination.

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