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Why now is the right time to stop wasting cash on cloud services

  • Posted on March 23, 2021
  • Estimated reading time 3 minutes
rethink cloud optimization

As the impact from global disruption continues to force organizations to rethink their priorities and operating models, we’re increasingly hearing from organizations showing concern about their cloud spending and IT operating costs.

Inevitably the shift to remote working, the explosion of demand for online and a whole raft of other changes to “normal” life have shown even the most sceptical the role the cloud can, and should, play in the future of business. These shifts towards digital have obviously placed greater demands on cloud, driven up consumption and increased costs.
It’s commonly claimed that public cloud costs are lower than those of an on-prem data center, but that’s not always the case – it’s only true when the cloud environment is managed properly and expertly optimized. Too many organizations have faced big surprises when their cloud bills arrive.

Let’s be honest, cloud can be complicated. And billing can be really complicated! If you’ve never seen a bill from one of the cloud hyperscalers, ask your finance team what they think of them – and when you’ve asked, run for cover!

Cloud bills are notoriously complex, full of detail, and often contain thousands of line items on each monthly invoice. So knowing exactly what you’re spending, and where, can be seen as something of a dark art.

How bad is the problem?
It’s likely worse than you might imagine. But at least, if you’re reading this, you’re not alone in having a problem. We recently ran a poll on LinkedIn and found that 55% of respondents said they were overspending on cloud. 10% of those even said spend was out of control. That’s a pretty strong statement. Perhaps the most concerning finding was that 26% of those who responded said they were “probably” overspending.

Why is that so concerning? Because those organizations are uncertain, there’s a sense of the unknown and a lack of visibility of the scale of the problem. Let’s just think on that point for a moment - is there any other part of an organization where there’s uncertainty around what is being spent and where? If cash is being wasted, it needs to be known. It needs to be addressed, quickly. It wouldn’t happen in other parts of the organization.

reduce cloud costs poll
And as for the 45% who say they’re not overspending – we’re more than a little sceptical. With good reason. Of all the clients we work with, where we’ve analysed their environments, it’s incredibly rare to encounter an organization that is truly operating efficiently in terms of cloud consumption and spending. It’s the only part of an organization where there seems to be a reluctant acceptance that it’s too hard to accurately keep on top of.

What can you do about it?
Fortunately, we can help you to take back control. We’ll share our experiences and introduce you to our proven approach where we’ve defined the 3 pillars of cloud optimization. This approach will help you to reduce your IT operating costs and begin eliminating waste quickly. By optimizing resources, gaining visibility and control, and implementing effective governance, you will rapidly begin to make significant savings. How much? The range is huge – we’ve shaved 30% off bills for clients, while for others, those savings can reach 70%-80% in extreme situations. When we did it for ourselves at Avanade France, we reduced costs by 70%.

When you eliminate waste your ROI improves, and you free up funding for projects that will deliver greater value to your business. Imagine the possibilities.

Read the guide and see how we can help you to quickly start your optimization program. Wherever you are on your cloud journey, it’s the right time to optimize.

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