If you’re running a business, chances are you’re relying on multiple cloud technologies in some capacity. From Dropbox, your VoIP phone system to Microsoft, Google Cloud Platform and Amazon’s AWS, cloud computing has become a fundamental part of modern business. But as with any investment, it’s important to ensure you’re getting the most out of your cloud spend.
Cloud computing has a lot of advantages for businesses, including scalability, flexibility, and cost savings. However, those cost savings can quickly evaporate if you’re not careful. According to a recent report, 35% of cloud spend is wasted due to poor management.
The Cost of Cloud Computing
That’s a significant amount of money, especially for small and medium-sized businesses. So, what can you do to ensure you’re getting the most out of your cloud investment?
Managing Your Cloud Spend
The first step in managing your cloud spend is to understand what you’re paying for. Take a close look at your cloud service agreements and licensing contracts to ensure you’re not paying for services you’re not using. Many companies purchase more licenses than they need or fail to take advantage of all the features included in their agreements.
For example, if you’re using Microsoft Office 365, you may be paying for more licenses than you need. Microsoft offers a range of licensing options, including plans for small businesses, enterprise customers, and nonprofit organizations. By choosing the right plan and understanding all the features included in your agreement, you can save a significant amount of money.
Cloud Usage Monitoring
Once you’ve reviewed your licensing agreements, it’s important to monitor your cloud usage to ensure you’re not overpaying for services. Most cloud service providers offer usage monitoring tools that allow you to track your resource utilization and identify areas where you can save money.
For example, AWS offers a cost management dashboard that lets you monitor your cloud spend, identify cost trends, and set cost allocation rules. By using these tools, you can identify areas where you can optimize your usage and reduce costs.
Another way to reduce cloud costs is to optimize your cloud infrastructure. This involves reviewing your cloud environment to identify areas where you can improve efficiency and reduce waste. For example, you may be able to consolidate your servers or storage to reduce your overall footprint.
There are also third-party tools and services that can help you optimize your cloud environment. For example, there are services that can provide a cloud management platform that helps you optimize your cloud infrastructure by identifying areas where you can reduce costs, improve security, and streamline your operations.
One often overlooked aspect of cloud spend management is security. Cloud security is critical to protecting your data and ensuring your business operations are not disrupted. A breach or attack can result in significant costs, including downtime, lost data, and damage to your brand reputation.
To ensure your cloud environment is secure, it’s important to use best practices for cloud security. This includes implementing strong passwords and two-factor authentication, encrypting data at rest and in transit, and using network segmentation to isolate sensitive data.
Cloud computing has become a fundamental part of modern business, but it’s important to ensure you’re getting the most out of your cloud investment. By reviewing your licensing agreements, monitoring your cloud usage, optimizing your cloud infrastructure, and ensuring your cloud environment is secure, you can reduce your cloud spend and improve your overall ROI.
So, don’t let poor cloud spend management eat into your profits. Take control of your cloud investment today and start seeing the benefits of cloud computing for your business. If you’re interested in understanding how you can get more from your cloud investments, we’re glad to help. Feel free to reach out and contact us to learn more.