Tips for better cloud cost management

The term “cloud cost management” is supported by many parties, from those selling cloud-hosted cost management software to cloud cost management software that focuses on telecommunications cost management software (TEM), IT cost management software, SaaS, IaaS, and/or PaaS services. Today’s blog tends to cloud management software, especially infrastructure, IaaS and PaaS as public cloud services.

One of the biggest benefits of cloud computing is cost-efficiency, but the agility gained from the use of public cloud computing is a downside. If cloud services are not effectively deployed, managed, and unmanaged, costs are easily out of control. Most organizations do not fully migrate all applications to the cloud. This hybrid cloud structure allows public cloud services to increase additional costs for their overall budget and make understanding, planning, and managing these cloud services very important. This is where cloud cost management software comes in and you need to be part of your overall cloud management strategy from day one.

Tips for better cloud cost management
Diggio / Pixa Bay

Cloud Computing Services
Before we start managing cloud spending, take a closer look at the different types of cloud services and get a picture of the expenses you need to manage. At the time of this blog writing, aws alone offers more than 190 cloud services.

Infrastructure as a Service (IaaS) is a category that provides traditional IT services such as computing, databases, storage, networks, load balancers, and firewalls on-demand and off-premises, and vendors such as AWS, Azure, and Google dominate this market.

Platform as a Service (PaaS) is a Category of cloud computing services that provide a platform that enables the development, execution, and management of applications without complicate the construction and maintenance of the infrastructure associated with app development and adoption.

Software as a Service (SaaS)
is a subscription-based licensed, centrally hosted software license and deployment model. Providers that dominate this area include Salesforce, ServiceNow, Microsoft, and SAP (and ParkMyCloud).

Enterprise spending in these categories is skyrocketing, as described in the Cloud Waste Blog, and the difficulty of managing effective cloud cost management for a single cloud, companies that protect your business’s revenue to create a Creating a multi-cloud or hybrid cloud environment now requires visibility and insight into cloud-based services. Requires automated control and measures to repair and manage service costs.

Where does cloud expense management fit?

As mentioned earlier, cloud cost management must be an important part of your overall cloud management strategy. Companies need a clear strategy here, and the tools are typically divided into the following categories:

Deployment and orchestration: Create, modify, delete resources, coordinate workflows, and manage workloads

Automation: Use infrastructure as code and other DevOps concepts to enable cloud consumption and app services deployment

Security and Compliance: Manage role-based access for cloud services and enforce security configurations

Service request: Collect Meet user requirements for accessing and deploying cloud resources

Monitoring and logging: Collect performance and availability metrics to automate incident management and log aggregation

Inventory and classification: Identify and manage existing Brownfield cloud resources to monitor and manage changes

Cost management and optimization: Track and scale cloud costs and adapt capacity and performance to real demand

Migration, Backup, and DR: Snapshot and data replication for data protection, disaster recovery, and data movement

We believe that cloud cost management is a subcategory of cloud cost management and cloud cost optimization. Tools in this category typically help organizations use the following information:
Cost transparency, reporting, budgeting, chargebacks
Purchase and manage Reserved Instances (RIs) and Savings Plans
Use real-time usage data to make recommendations and take action on unused, maintenance-financed, or orphaned cloud resources
Create an action plan to optimize future cloud costs and avoid budget errors

Why Cloud Spending Management Matters

Simply put, the cloud is a utility, you need to report and allocate cloud costs, and you need to automate these cost management actions to optimize cloud services and take advantage of the cloud. Whether cloud spending management is a full-time responsibility or a “time-consuming” responsibility, it’s important to integrate it into your cloud management strategy from day one. It’s time-consuming, but instead it’s about optimizing and validating cloud services and costs to take advantage of ROI.