Cloud Cost Optimisation – How to manage rising cloud costs.

Cloud Cost Optimisation How To Manage Rising Cloud Costs

Cloud Cost Optimisation – How to manage rising cloud costs.

As more organisations look towards the cloud as the future of business technology, it’s becoming increasingly important for any business that wants to stay ahead to at least consider implementing cloud technologies into their infrastructure.

But, as with everything right now, cloud costs are rising, meaning that you need to be aware of how to ensure that the cloud is economically viable for you. After all, all the benefits of the cloud don’t matter if you must pay sky-high prices for your cloud implementations.

In this blog, we will go over the rising cloud costs, why cloud waste is essential to consider, and how you can use optimisation to help your cloud implementation work for you by saving costs wherever possible.

Why are cloud costs increasing?

As with everything in the world, costs are surging right now. This includes the cloud, which takes a lot of resources to make work. With that and the rise of generative AI technologies, the cloud has become pricier than at its onset.

Furthermore, the rise in labour costs is another huge reason the cloud is getting more expensive. Running the cloud requires staffing to install, maintain, and keep functional. Where with an on-premise system, all that cost would be on the end user, the cloud aims to take care of everything on that end. So, when labour costs go up, the service cost also increases.

Another primary reason that cloud costs are so high is the high level of ‘cloud waste’ in the corporate cloud. Cloud waste is when a cloud service remains underutilised compared to what’s being paid. This results in the mass haemorrhaging of cloud resources from corporations worldwide.

This is why ensuring that your cloud implementation is optimised is vital, as it will help reduce your costs immensely by removing the extra costs associated with cloud waste.

What are the common sources of cloud waste?

Cloud waste is a massive problem, costing businesses approximately $26.6billion in 2021. With this, it’s essential to know why cloud waste exists and how to tackle it within your organisation, as not keeping an eye on it will accrue massive costs for your organisation.

Generally speaking, the common cloud waste causes are —

  1. Overprovisioning: Overprovisioning is when you allocate more than you need to your cloud implementation. You’ll pay for whatever you give, meaning any excess usage will be costly.
  2. Purchasing for extended periods: Organisations often purchase a service longer than required, meaning they’ll have to pay for unused extra time.
  3. Duplicate purchases: Sometimes, organisations will purchase the same or similar services multiple times when they don’t need to.
  4. Not De-provisioning orphaned resources: If you fail to de-provision an account within your implementation, it will become an ‘orphan’ account and take up resources.
  5. Not focusing on cloud maintenance and optimisation: Not looking after and optimising your cloud implementation will require more resources and ultimately cost more.

Cloud waste can lead to many issues when it comes to budgeting and planning, as it can lead to spending more than you planned.

How to implement best practices and tools for cloud cost optimisation


Cloud visibility is the ability to view all activity within your cloud network. This means you can keep track of what’s being used to ensure that nothing in your system isn’t allocated costs you money.

This will let you track your cloud consumption fully and ensure you can take further steps, such as optimisation.


Cloud governance lets you design and implement a framework of policies that allows you to manage and guide your cloud systems.

Cost management is one of the five primary disciplines of good governance. So, by having a high level of governance, you can ensure that your cloud implementation works for you without costing you astronomically.


Optimisation is the key to ensuring that your cloud implementation is cost-effective, as the process ensures that your cloud implementation is efficient and effective. You’ll inevitably spend more without optimising your cloud systems than if your systems were correctly optimised.

Specifically, optimisation balances cloud costs and other resources with performance, meaning you’re always getting the best bang for your buck.

There are a few different ways you can optimise your cloud systems easily —

  • Budgeting: Budgeting will ensure you have a set amount you can spend and nothing more. This will mean that the cloud will never eat into other expenditures.
  • Track resources: Using the aforementioned visibility, you can easily track your resource usage to tweak your implementation.
  • Right-size: Right-sizing is when you modify your system allocation to be the most efficient size, meaning you can always ensure you’re never overspending on performance or other capabilities.

How We Can Help

The cloud is an essential consideration for any organisation looking to be successful. But, with the rising costs associated with cloud computing, it’s vital to ensure you’re up to date with the information you’ll need to know to ensure your cloud journey is a success.

We have helped many of our customers migrate to the cloud by reviewing existing IT infrastructure and discussing the best optimal strategy.

Contact us today if you want to start with the cloud but don’t know where to begin. Our experts are here to help you get started and will give you a helping hand to ensure you’re never overspending.

Get in touch with us today and see how we can help you.

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