Companies often turn to the cloud to save money, but many of them are spending more than they need to on cloud services. Find out why companies overspend and how to avoid doing so.
Businesses have whole-heartedly embraced the cloud. Ninety-six percent of companies now use at least one cloud service, according to RightScale’s 2018 “State of the Cloud” report.
Companies often turn to the cloud to save money. However, many businesses spend more than they need to on cloud services. Analysts have found that companies overspend by an average of 35%.
Why Companies Overspend
There are several reasons why companies spend more money than necessary on cloud services. For starters, companies often overprovision. They pay for more storage space than they require, features they do not need, and high-powered virtual machines when less powerful ones will do. Perhaps they were unsure about their cloud computing needs when they moved to the cloud, so they took a “better safe than sorry” approach. Or perhaps they did not fully understand the cloud service pricing options, which are often numerous and complex.
Another common reason why companies overspend is that they do not optimize their systems before moving them to the cloud. As a result, they incur higher costs because they are consuming more of the cloud service providers’ resources.
Ways to Avoid Overspending
To get the biggest bang out of your cloud services buck, you need to avoid overspending. Toward that end, you should
Time Well Spent
Overspending on cloud services does not make good financial sense. Thus, it pays to take the time to understand and optimize your systems as well as learn the specifics about cloud service providers’ offerings. We can help on both fronts if you need assistance.