Operating your company in the cloud is different than running on premises. As the operations differ, so do the strategies for controlling costs. From a financial perspective, a data centre needs a huge capital outlay for the building, extra capital spending for software licenses and servers, and smaller but essential operating expenses for powering the cooling systems and the servers, and for management and maintenance. In the cloud, on the other hand, you will not incur any capital expenses. Instead, there can be enormous operating costs, charged for the server virtual machine requests, software licenses, network traffic, and other minor details.
Tips for Cloud Cost Management
- Cloud Inventory Visibility: Lack of visibility in cloud resources can result in poor management of the resources involved. Effective management starts with a detailed analysis of the entire infrastructure. If some cloud resources are going unused without your awareness, but your company is paying for them, the costs will escalate gratuitously and cut into your infrastructure savings as well as other financial benefits brought about by cloud. To have complete visibility of the cloud services used, you should analyse the usage trends and patterns first. Irrespective of your cloud environment, as well as tracking the resources you have spent, it's significant to predict what you'll be using. You will need granular and consolidated details to correlate data analysis and reports against business objectives.
- Budgets: Define and assign budgets for all departments, projects, cost centres, and also ensure approval structures to prevent cost overrun by sending alerts when the set thresholds get breached. Use Show-back reports to chargeback your departments for their usage of cloud resources, limit the expenses and the use of resources.
- Role Based Access: Allow the users to manage the infrastructure actively after setting up a business-wide mechanism that plainly defines accessibility and permissions within the platform. You can limit the data as well as actions visible to the users by roles and organisations. Also identify who terminated, changed, or launched infrastructure, and the steps they took to control costs.