IT cost optimization is the process of continually evaluating and allocating all cloud resources. The very rapid development and sometimes uncontrolled introduction of new technologies has also affected the growth of costs due to the unproductive consumption of cloud resources.
IT cost optimization is the process of continually evaluating and adapting all the cloud resources that drive applications, infrastructure, and workloads. This area should be at the heart of every company’s IT strategy, but often this is not the case.
Consumption in the cloud is increasing
The strong growth in the use of cloud services shows no signs of abating. The downside to high growth is the (excessive) consumption of cloud services. According to Gartner, companies will spend up to 40% more. This unproductive consumption manifests itself in several ways:
- Purchase of IT assets that remain unused
- Unused automation provided by the cloud
- Unsuitable storage solutions according to the needs of the company
- Ignore discounts on licenses and services
Such cases do not allow full use of cloud services. To avoid them, a coherent cloud software and asset management strategy is needed for the entire IT environment.
9 Tips for Optimizing IT Costs in the Cloud
- Adjust your resources Companies buy a lot of computing power in the cloud
- Customize Your Resources II Companies buy a lot of reserved capacity and don’t monitor consumption
- Create a general Management Effective use of pricing and post-consumer payment models and reserved capacity
- modify space in the cloud Companies usually buy a lot of cloud storage
- Define roles and responsibilities Proper management and oversight
- consolidation in Match subscriptions All over the company
- rate and check Hybrid features – Possibility to use dual rights
- Check prices Take advantage of promotions
- Consolidation of small contracts – Combine multiple license agreements into one
Whether you use Microsoft, AWS, Google, IBM, Oracle, or a combination of them, you need to think about how you manage management, cost optimization, and licensing purchases from all vendors.
The complexity of multi-cloud environments
The complexity of cloud environments is unavoidable. For example, if you use services in Azure and AWS, they will run in two different environments. You will need different skills and people for this. You will have two access points to manage two environments.
Licenses for IT assets and software are complex. If we add more cloud environments to this, the complexity increases several times. Prices, license packages and usage rights are constantly changing. Business can get lost in this. As this is difficult to follow, promotions and incentives remain untapped.
Oftentimes, new cloud infrastructure is set up for new projects and new licenses are purchased without checking what is actually available. The reason is limited control over cloud services. Improper management in the new cloud environment has financial implications.
Manage cloud services in one place
You can only start to improve IT when you have a complete view of the current situation. Once that is done and the customization framework is in place, the tools are available to optimize costs and thus customize cloud services.
Cloud iQ platform Provides access to cloud services, usage reports, service customization, and an overview of post-consumer costs. The portal allows ordering and managing software and cloud resources from multiple providers.