How To Handle The Shock When You Receive Your Cloud Computing Bill

How To Handle The Shock When You Receive Your Cloud Computing Bill

It is common knowledge that there are hidden costs when your cloud-computing bill is delivered each month. There are, however, tried and tested practices you can adopt to avoid surprises. According to Dave Zabrowski,CEO and founder of CloudCruiser, it is really difficult for cloud computing providers to be completely transparent, especially for public clouds, but the hidden costs can be eradicated if only these providers would make an effort to be more transparent.

Over-allocation is a basic problem being faced by cloud computing customers. When a company taps the public cloud for its storage or computing power, it usually assumes that its workload will be at a certain level and, as such, it usually over-provisions and buys a higher-priced cloud computing plan to ensure coverage. However, experience shows that the real workload is not generally as demanding as the company has assumed. A cloud computing provider must be transparent with regards to a company’s allocation and usage so that the entity can downgrade to a less pricey plan.

Firstly, so that a company can save on its cloud computing plan, it can make use of cloud cost management and cloud management tools. There are various tools available that can assist a company in fine tuning their requirements in order to maximize usage of its cloud computing power and optimize cost. Different applications can recommend proper provisioning, tradeoffs between performance and cost, and alternative pricing models. Some tools also allow setting of alerts so that a company can be notified automatically if usage exceeds certain thresholds. In essence, a company must be able to monitor its instances real-time so that the monthly cloud computing bill will not be a shock.

Secondly, create clear cost-management procedures. In traditional IT deployments, IT had clear processes and control in place when it came to provisioning and approval. However, with cloud computing there is no particular policy in place. Therefore, an organization which makes use of the cloud must have clear governance policies in place.

Thirdly, create a management role which is dedicated to cloud computing alone. If a company is moving to the cloud, it is of utmost importance that they have dedicated management personnel to monitor and manage cost efficiency. The company must also search for the appropriate cloud computing provider to be able to negotiate.  Streamlined processes must also be created to support cloud computing provisioning.

Finally, there must be checks and balances in place through automated monitoring and cost management tools. However, human intervention is still required in order to provide the rules of engagement and proper governance.

By Florence de Borja

Sorry, comments are closed for this post.

Comics
5% Of Companies Have Embraced The Digital Innovation Fostered By Cloud Computing

5% Of Companies Have Embraced The Digital Innovation Fostered By Cloud Computing

Embracing The Cloud We love the stories of big complacent industry leaders having their positions sledge hammered by nimble cloud-based competitors. Saleforce.com chews up Oracle’s CRM business. Airbnb has a bigger market cap than Marriott. Amazon crushes Walmart (and pretty much every other retailer). We say: “How could they have not seen this coming?” But, more…

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud Cloud computing is more than just another storage tier. Imagine if you’re able to scale up 10x just to handle seasonal volumes or rely on a true disaster-recovery solution without upfront capital. Although the pay-as-you-go pricing model of cloud computing makes it a noticeable expense, it’s the only solution for many…

Three Tips To Simplify Governance, Risk and Compliance

Three Tips To Simplify Governance, Risk and Compliance

Governance, Risk and Compliance Businesses are under pressure to deliver against a backdrop of evolving regulations and security threats. In the face of such challenges they strive to perform better, be leaner, cut costs and be more efficient. Effective governance, risk and compliance (GRC) can help preserve the business’ corporate integrity and protect the brand,…

Four Recurring Revenue Imperatives

Four Recurring Revenue Imperatives

Revenue Imperatives “Follow the money” is always a good piece of advice, but in today’s recurring revenue-driven market, “follow the customer” may be more powerful. Two recurring revenue imperatives highlight the importance of responding to, and cherishing customer interactions. Technology and competitive advantage influence the final two. If you’re part of the movement towards recurring…

Cloud-Based or On-Premise ERP Deployment? Find Out

Cloud-Based or On-Premise ERP Deployment? Find Out

ERP Deployment You know how ERP deployment can improve processes within your supply chain, and the things to keep in mind when implementing an ERP system. But do you know if cloud-based or on-premise ERP deployment is better for your company or industry? While cloud computing is becoming more and more popular, it is worth…

The Cloud Is Not Enough! Why Businesses Need Hybrid Solutions

The Cloud Is Not Enough! Why Businesses Need Hybrid Solutions

Why Businesses Need Hybrid Solutions Running a cloud server is no longer the novel trend it once was. Now, the cloud is a necessary data tier that allows employees to access vital company data and maintain productivity from anywhere in the world. But it isn’t a perfect system — security and performance issues can quickly…

Do Not Rely On Passwords To Protect Your Online Information

Do Not Rely On Passwords To Protect Your Online Information

Password Challenges  Simple passwords are no longer safe to use online. John Barco, vice president of Global Product Marketing at ForgeRock, explains why it’s time the industry embraced more advanced identity-centric solutions that improve the customer experience while also providing stronger security. Since the beginning of logins, consumers have used a simple username and password to…

Adopting A Cohesive GRC Mindset For Cloud Security

Adopting A Cohesive GRC Mindset For Cloud Security

Cloud Security Mindset Businesses are becoming wise to the compelling benefits of cloud computing. When adopting cloud, they need a high level of confidence in how it will be risk-managed and controlled, to preserve the security of their information and integrity of their operations. Cloud implementation is sometimes built up over time in a business,…

What the Dyn DDoS Attacks Taught Us About Cloud-Only EFSS

What the Dyn DDoS Attacks Taught Us About Cloud-Only EFSS

DDoS Attacks October 21st, 2016 went into the annals of Internet history for the large scale Distributed Denial of Service (DDoS) attacks that made popular Internet properties like Twitter, SoundCloud, Spotify and Box inaccessible to many users in the US. The DDoS attack happened in three waves targeting DNS service provider Dyn, resulting in a total of about…