How can a CIO control the cloud budget

The total spending by enterprises across the world on cloud services in Q2 of 2020  has increased by about eleven percent as compared to Q1, as per The expenditure has increased by thirty percent as compared to Q2 of 2019.


We do not have an e  exact estimate of the funds wasted due to faulty execution, oversight, internal conflicts, and poor planning, but  CIOs point out that having firm control over the cloud budget spend is essential to reduce the wastage of resources. Also, there should be awareness that the effort to regain control over cloud spending can’t be viewed as a one-time measure. An amalgamation of practices, technology, and operations will help to reduce the budget waste effectively.

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Focus on the obscure waste

Enterprise leaders say that cloud spends waste is hidden in various forms. There are different underutilized elements, like storage and other computing elements. One of the most prominent wasteful measures is the failure to cycle application environments when not in use properly; it includes testing and development areas. Hyperscaling the computing elements is another way in which money is wasted. This can, however, be fixed by enterprises. The increased transfer of the application to the cloud means that organization can truly estimate the required size and dynamically change it as per the demand.

Wastage also occurs when employees leave the VMs on when not using the remote desktops, or leaving non-production environments available when idle. Technically before shifting to the cloud, organizations used to maintain such elements on-premise. As a result, the budget savings from operational and capital maintenance was visible immediately. All such activities are relevant to cloud spends.

CIOs believe that operational efficiencies can be easily optimized by deploying on-demand and auto-scaling functionalities of the cloud platform.

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Staying informed and alert

Leaders believe that the best way to regain control on the cost is by strict monitoring of the applications and workloads, and making the changes based on planned and current requirements. To fully utilize the cloud budget, the organization needs a complete picture of the cloud activity to make effective and correct decisions to optimize the processes.

Automated management tool and services, and cloud monitoring is vital to identify potential wastage. Enterprise leaders suggest deploying a multi-cloud management platforms and third-party cloud financial operations to provide the finance and IT teams with complete visibility into their cloud use. With these, the teams can give personalized suggestions for when and how to implement to ensure cost optimizations. With the proper blending of partner support and solutions, enterprises can quickly regain control of the cloud budget spend.

Hasty implementation results in resource wastage

CIOs suggest that cloud adoption with a consistent effort is the best method to ensure good results in the long-term. Shifting enterprise services to the cloud or adopting digital transformation only as a knee-jerk response to the external force will result in wastage in the future.

The pandemic resulted in many organizations suddenly opting for cloud platforms, but after a while, regretting the decision. As remote work environment became the way to go, organizations started shifting essential products and services to the cloud with minimal planning. The initial stage was due to organizations considering the shift to new services or public cloud as the best mitigation measures. However, due to a lack of proper time to decide on deployment or migration, enterprises didn’t select the best consumption model. This could be one the biggest reasons for wastage of budgets, and non-optimal utilization of the funds.

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