5 tips for cloud cost optimisation
Cost pressures are looming, and CPG companies must ensure their cloud cost optimisation programs are in full swing. The economic landscape is becoming more challenging, shareholder returns are under pressure, and CTOs are turning to CIOs and CTOs with tough questions about their cloud program expenses.
While cloud technology holds substantial potential, many CPG businesses have witnessed their cloud spending boom by as much as 20 to 30 % annually. Without a keen eye on costs and responsiveness to economic pressures, CIOs risk their cloud programs facing budget cuts – not to mention the growing challenges around proving sustained return on investment.
Our work with clients on optimising their cloud environments has led us to 6 key steps CPG businesses – and all cloud managers – can adopt to control and optimise cloud costs.
Measure it to manage it: We have implemented Portera redLineTM – a cloud monitoring, budgeting, and alert tool that has dramatically reduced Cloud expenditure. Ensure you’re only paying for the cloud capacity you use.
Curb autopilot growth: Distinguish between real growth, driven by factors like an expanding user base, and “auto-pilot” growth resulting from poor resource management. Establish transparent tagging and reporting systems, allocate costs to promote accountability, and implement financial controls.
Remember incremental gains: Identify straightforward cost and performance optimization opportunities, like releasing unused capacity or implementing scheduling and auto-scaling features. Prioritize actions with maximum benefits and deploy them across teams swiftly.
Reevaluate Vendor Agreements: Review contracts to ensure they align with current needs. Seek renegotiation if necessary, considering trade-offs for greater flexibility, and explore strategic partnerships and collaborations
Remind on the Cloud business case: Maintaining relevant migrations to the cloud can continue to drive long-term cost savings and position the business for growth. These are key business benefits that all CTOs should be gently reminding their CFOs about when it comes to budget time.
Cloud adoption remains the right technology choice, but spiraling costs amidst economic challenges means a need to do more, with less. redLineTM is an easy ‘over the top’ way to manage and reduce costs. Get in touch with us if you want to learn more about or visit the Azure marketplace.