ETMA 2020 Highlights: Cloud Cost Optimization
You’ve definitely heard of “the cloud” and you’re probably using it in various forms for your business’s data management. But do you know what it is costing you? A panel of experts at this year’s Enterprise Technology Management Association (ETMA) Conference shared their perspective on the best ways to manage enterprise spending on cloud and subscription services.
While the adoption of public and private cloud utilization continues to increase, it is now ubiquitous in today’s world. However, the vast majority of corporations have a multi-cloud strategy, which could inhibit cost-containment and cost-optimization efforts by your IT department. Most cloud users underestimate their wasted cloud-spends – estimated of up to 35% – and run the gamut from shutting down dormant accounts, leveraging provider discounts, or reviewing software licensing agreements.
More than half of the larger companies who responded to the RightScale survey spend at least $1.2 million each year on cloud services, and a quarter spend more than $6 million. With one-third of that spend wasted, companies could be saving or reinvesting hundreds of thousands of dollars each year. Of the top challenges to cloud adoption, managing cloud spend ranked #1 with lack of resources and expertise tied for #3. There is a false perception that cloud based technologies are less expensive than traditional alternatives, but clearly that is not always the case. It is possible to get a handle on these expenses, and by working with a trusted partner, reducing the spend over time.