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Overspending on cloud services
Cloud spending can become a significant part of a company's IT budget, yet executives believe 30-40% of it is wasted.
There are strategies that can result in immediate and tangible benefits.
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Reasons for wasted cloud services
- Companies pay for more cloud than they need, just in case. However, cloud services are dynamic and scalable, allowing you to have just the right level.
- Zombie resources. These are idle resources that are a byproduct of routine activities.
- Employees that are unaware of their cloud spend and not equipped to drive cloud cost optimisation.
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Preparing for cloud cost optimisation
- The cloud mindset. Organisations should cultivate a culture of financial accountability to minimise waste. A cross-functional approach across planning, architecture and operations can help the company to scale cost-effectively.
- The cloud toolset. Cloud services offer free access to tooling that enables visibility to cloud usage. You can also use advanced third-party tools and platforms.
- The cloud skillset. Organisations must cultivate IT expertise in interpreting cloud cost and usage and implement necessary changes. They could also make use of managed service providers (MSPs).
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