3 Reasons Cloud Computing Doesn’t Save Money
upstart writes:
3 reasons cloud computing doesn't save money:
I found this article interesting, especially the statement, "Over the past decade, cloud adoption has become the rule, not the exception. And yet, many companies that have embraced the cloud are feeling the acute burden of a spike in spending. In other words, cloud usage costs may be costing many businesses more than they are actually saving."
Other recent articles and studies say the same thing. The initial perception that cloud computing would lead to operational cost savings did not pan out for many Global 2000 companies.
[...] First, there is little or no monitoring. A common problem is enterprises have ineffective or no cloud cost management operations, also known as cloud finops (financial operations). Finops should include cloud cost observability systems that report what's spent where, by whom, and for what purpose, as well as the root cause of the spending.
[...] Second, there is no discipline or accountability. A lack of cloud cost monitoring means we can't see what we're spending. The other side of this coin is a lack of accountability. Even when a business monitors cloud spending, that data is useless if everyone knows there are no penalties. Why should people change their behavior? They need known incentives to conserve cloud computing resources as well as known consequences.
[...] Third, the business can't or won't optimize cloud resources. One of the core goals of a sound finops program is to optimize cloud spending. Finops will report the measured value of all money spent on cloud-based resources that's returned to the business. The overall objective is to have more business value from fewer cloud computing dollars.
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