In our last post, we explained why poor design is the likely cause of high cloud costs. Many organizations pay three times more than necessary for cloud services because they don’t know how to optimize their applications and security tools. They also fail to take advantage of available tools for automated monitoring of cloud usage.
Waste is another source of cloud overspending, according to the Flexera 2023 State of the Cloud Report. As we noted in our last post, organizations estimate that 28 percent of their cloud spend is wasted — and that number is likely low. OpenMetal extrapolated the Flexera numbers and determined that enterprises waste $7.2 million annually and small to midsize businesses waste $1 million.
Much of this waste stems from a lack of effective cloud governance. Unless guided by policies and procedures, cloud consumers will typically take the path of least resistance. They will turn on the level of cloud services they think they might need without considering the potential cost. Often, these services are left to run indefinitely, constantly running up the bill.
However, there are things organizations can do to minimize waste and get a better handle on their cloud spend. It comes down to setting up automated systems that suspend or shut down cloud instances when unneeded.