Companies throw away $186 Billion Dollars a year on this one Expense.
Here’s how you can avoid burning cash on this profit killer in your business….
In 2023, the second biggest expense for businesses, behind paryoll, was cloud costs.
That’s right, your file storage is costing almost as much as your employees and it’s silently killing your profits.
It’s estimated that at least 30% – or $180 billion of the nearly $600 billion dollars on cloud spend globally – is completely unnecessary.
That’s just money being poured down the drain.
Simple things like multiple copies of the same document or neglecting to remove obsolete, outdated or useless assets can rack up storage space fast .
And for that reason, the costly cloud culprits can be hard to find and identify>
Here are three principles you can implement in your business to stop these sneaky cloud storage culprits from killing your profits.
1. Visibility
A hidden issue cannot be fixed. Local cloud spend first. This is is easier said than done.
The cloud’s convenience makes it har to track and control teams’ and individuals’ cloud resource consumption, which might vary by service, resource, and even time of day or week..
So you need to implement tools like resource was – which automatically track which teams use cloud resources and help you precisely calculate expense and discover exceeds capacity.
Or you can use tolls like cloud costs anomaly detection which warns users when the expensive cloud parking meter starts ticking out of control.
2. Accountability: Put someone in charge
It would be foolish for businesses to implement payroll budget without a dedicated admin or HR team to monitor and optimize spending.
But, oftentimes, no one is in charge of controlling and monitoring cloud costs.
Puts someone in charge who is capable of cost effective cloud budgeting, negotiating advantageous contracts, and instituting cost cutting engineering practices.
This should not be seen as an annual event, but as an ongoing and regular commitment.
3. Implement Automation & AI
Even when a specialized team is monitoring cloud use and requirements, AI is the only way to keep up with complicated and rapidly changing cloud scenarios.
I’ve seen Fortune 1000 companies reduce cloud spend by up to 40-50% by automating best practices.
For example, in the same way that motion detectors can turn off a light switch when the office is not in use, features like “intelligent auto-stopping” make it possible for customers to terminate their cloud instances when they are not being used.
Businesses are finding ways to save tens of millions of dollars as cloud management develops and at my company, LiberationTek, we are doing our part to help clients take back their profits and eliminate costly cloud costs.
