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Cloud Control, the unspoken problem of Cloud infrastructure… Overspend!

[fa icon="calendar"] Apr 6, 2017 4:02:00 PM / by Sarah de Castro

Sarah de Castro

Part One in a two part series on why over thirty percent of money spent on AWS is wasted; tune in for part two next week to see what can be done about it.

Recurring and unexplored overspending on IaaS… but why?


While we often hear about concerns relating to corporate cloud IT security,  there is another issue that’s costing corporations even more: overspending on Cloud infrastructure.

One of the great unspoken headaches of corporate Cloud infrastructure is dealing with the budget, or to put it plainly: dealing with overspending on AWS.

The well known scenario consists of the CFO receiving the monthly  AWS bill, only to see it’s exploded the forecast budget. But it’s too late to do anything about it, and honestly it’s tricky to even understand which projects the money’s been spent on.

While the pain point of deciphering the AWS billing-report has been addressed with specific offers from various Cloud cost companies that decode the bill for the c-levels who are responsible for paying it, the real problem: how to control the spend before it happens, is still at large.

And it sure won’t be the supplier beit, Amazon, Google or Azure who are going to cut off the flow to respect your predefined budget (there’s a reason these companies’ revenue and profit margins are steadily climbing).

It’s said that more than 30% of corporate Cloud infrastructure spend is wasted, according to this 2106 RightScale study:    

cloud-computing-trends-2017-wasted-cloud-spend.png

The report states As adoption grows, cloud bills and cost concerns are also growing. As a result, the most cited challenge among mature cloud users was managing cloud costs.”

While certain corporate overspending can often be attributed to mismanagement or indulgence, when it comes to IaaS this is NOT the case.

The fact is, the way in which Cloud resources are acquired lends itself to overspend. This is because those ordering and using the Cloud computing power are not the same as (and in fact usually quite removed from) those paying the bill. And further to this, those footing the bill don’t often understand what they paying for exactly, so it’s even more tricky to clearly discuss strategies to better control Cloud cost.

More and more companies are becoming dependant on Cloud infrastructure as flexibility, scalability and other benefits of Cloud migration are  mandatory to remain  competitive in today's business landscape. But as these companies make the move, or as startups scale up to corporate size, they all encounter this glitch in the system: Cloud cost control.

Stay tuned next week for part two of out look at Cloud infrastructure cost control, to find out how to implement company wide accountability and how helping your developers work smarter to reduce Cloud costs… hint don’t give them “open bar” and expect them to stop drinking...

What's your experience with corporate IaaS overspend? And what do you put it down to? Tell us by leaving a comment below...

Topics: AWS, Budget, IaaS, Cost, Corporate

Sarah de Castro

Written by Sarah de Castro

Cloud-enthusiast and storyteller, Sarah is a content strategist at OneKloud. Explorer of the technology landscape, she boils down technical and complex ideas for everyday digestion (and enjoyment). With an appreciation for sophisticated simplicity, linguistics and branding, she is a global local in Paris from New Zealand.