The five problems that occur most frequently are closely intertwined, with each issue leading inevitably into the next one.
But first things first. Cloud use is inherently dynamic, so unfortunately a certain degree of unpredictability will always be a feature of cloud budgets, which is the first issue. The second problem is directly related: higher cloud costs than originally anticipated. Even that would be manageable – were it not to lead us straight to problem number three: cloud spend management will only succeed if there are also insights and visibility into who is spending what within your organization. But rising to this challenge will only be possible if the fourth problem, the administration of multi-cloud environments, has also been tackled adequately. In turn, this will only succeed if another issue has been dealt with properly at some point, namely the lack of a clearly defined cloud strategy.
How to Cope With these Problems
Only effective cloud spend management can give you the insight and visibility you need to optimize your current cloud resources and cloud consumption, plan future cloud spending and control your budget, while also avoiding pitfalls like unplanned cost overruns and maintaining control of your cloud environment. It will also enable a reduction in unpredictable cloud spend using a consumption-based approach. What’s more, users will also be in a position to track current usage of cloud resources, forecast future usage and optimize cloud budgets. Here are some of the things you ought to bear in mind.
Gain insight into your cloud usage and spend within your multi-cloud environment. Identify wasted and underutilized resources and realize potential cost savings. Track cloud usage and get a clear view of how your company is using cloud resources across different business units. This is where centralized, cross-vendor tagging helps you improve the management of your cloud resources.
To do this, you must convert data into actions. Understand business needs, track usage and assign cloud costs to the right business units. Identify cost savings, align your cloud investments, improve compliance and enable better security of cloud resources.