There is no doubt that Cloud computing offers numerous benefits that have revolutionized the way organizations build and scale their infrastructure, but we see more and more organizations reaching out asking help in managing and optimizing their cloud spend.
Despite years of investment in cloud technologies, many businesses have yet to achieve and maximize value from their cloud investments. Even with the unprecedented surge in cloud investment, only 42% of enterprises have fully achieved their expected outcomes.
Here are some of the challenges we see our customers usually facing
Complex Pricing Models: Cloud service providers typically offer a variety of services with complex pricing models. Understanding and predicting costs can be challenging, especially when services are interdependent or when pricing is based on usage metrics that fluctuate.
Lack of Visibility: Many organizations struggle with gaining visibility into their cloud spending. Without proper monitoring and tracking mechanisms in place, it’s difficult to identify where resources are being over-provisioned or underutilized.
Cost Allocation and Chargebacks: In multi-tenant environments or large organizations, accurately allocating costs to different departments or projects can be challenging. Implementing robust cost allocation mechanisms and chargeback processes is essential for accountability and transparency.
Reserved/Committed Instances and Savings Plans: Cloud providers offer discounts for committing to usage over a specified period through reserved instances or savings plans. However, predicting future usage accurately to take advantage of these discounts can be challenging, and organizations risk overcommitting or underutilizing these resources.
Shadow IT: With the ease of accessing cloud services, employees may procure resources independently without proper oversight. This can lead to “shadow IT” expenses that are not accounted for in the organization’s budget.
Inefficient Lift and Shift Systems: Lifted and shifted applications may not fully leverage cloud-native services and features that are optimized for cost and performance. Without refactoring or redesigning applications to take advantage of cloud-native capabilities, organizations may miss out on opportunities to optimize costs and improve efficiency.
