5 Ways to Reduce Cloud Spend

Cloud Migration & Integration / Digital Optimization Strategy / IT Consulting / Process / Technology / Thought Leadership

5 Ways to Reduce Cloud Spend

Companies spend billions of dollars on cloud solutions, but it is not easy to see how much of that is wasted because of poor planning, flawed execution, ineffective oversight, internal fighting, or any number of obstacles. Having strong control over cloud spend is vital to prevent wasted resources and revenues. Moreover, it needs to be an ongoing issue to prevent things from getting out of hand. The best way to curb cloud spending is by using a combination of technology, practices, and operations.

There are 5 ways that companies can reduce cloud spending including searching for hidden costs, monitoring workload needs, reducing waste, preparing for change, and understanding current spending on cloud solutions.


Find Hidden Costs

Wasted money can happen in many different ways in the cloud. It may not be evident at first glance, which is why you’ll need to dig a little deeper to identify the hidden costs of cloud spending. Look for unused resources such as storage space or other features. It is also good practice to cycle application environments, including development and testing parts if they are not in current use. Many companies can find themselves paying for oversized resources that they don’t need. Investigate costly practices like leaving VMs on or making non-production resources available even when these things are not needed. To see the cost savings when it comes to the cloud, optimize by making good use of the auto-scaling and on-demand practice of the space.


Monitor Workload Needs

Reigning in cloud spending involves constantly monitoring workload needs. It is important to assess workloads and applications and make adjustments that include both current and future requirements. Getting the bigger picture of your company’s cloud activity can help you make the best decisions about optimization and spending.

If your organization has multi-cloud solutions it can be difficult to monitor each cloud space. Consider using automated cloud monitoring and management tools to uncover possible waste in your cloud computing solutions.

Another way to stay on top of cloud spending is to regularly do finance and software development reviews. These can be manual reviews or automated reports that are designed to provide accurate data that is key to making fast and effective decisions.

You should also use a monitoring tool that can identify unusual activity in your cloud space. These tools can help find waste, which you can quickly resolve.


Reduce Waste from Haste

Moving into the cloud can deliver long-term value but it needs to be done carefully and with planning. Unfortunately, if cloud adoption happens without a strategy it can often lead to waste. Many organizations that quickly moved into the cloud in response to COVID-19 have started to regret their haste.

Rather, to make the most of cloud solutions for your business, you need to have some planning, which includes a consideration of the time it will take to transition and train people for new procedures and policies.


Anticipate Change

Organizations need to understand that a cloud strategy will change and evolve. Whether that is through SaaS additions, new cloud-native services, or other developments, it is best to prepare for a dynamic experience. To meet this challenge, develop an integrated strategy that brings together cloud governance, operations, and spending.

Cloud spending will not stay static. By design, the cloud environment can easily fluctuate to accommodate changing needs and demands. Therefore, businesses need to accept that cloud spending budgets will change over time depending on future needs and trends.


Understand Cloud Spend

Visibility and transparency are essential to understanding cloud spending and resource usage. Governance can be a big part of creating this understanding. You’ll need to know what is being spent on cloud sub-accounts, so you have a full picture of your company’s cloud costs.

Gather the cost data from the top level down to each microservice and database cost. Keep in mind that changes at these smaller levels can put you on the track to cloud optimization. If you attempt to tackle cloud spending issues from the top down, you’ll find the prescription won’t be sustainable.

Examine cloud costs and how it fits into your business operating costs. Set goals and aim for ongoing improvement. Taking this approach will make you more willing and able to adopt technological advancements that can help you save money and run effective teams in the cloud.


As cloud spending continues to increase, companies will need to gain control over wasted resources and revenues. Five ways that companies can reduce cloud spending include finding hidden costs, monitoring workload needs, reducing waste, anticipating change, and understanding current spending on cloud solutions. Controlling what you spend on cloud computing can help you optimize your cloud usage while still benefiting from the solutions.