Companies struggle to control cloud spending.– It is crucial for enterprises to revisit their cloud strategies, which may have been neglected during the initial rush to invest in cloud computing. A renewed focus on extracting value and improving cost management is necessary to ensure that cloud investments yield tangible business benefits. Optimization of cloud costs should involve stakeholders from the CFO to procurement and IT teams.
One approach to tackle cost challenges is FinOps, or cloud financial management, which combines Finance and DevOps. FinOps enables visibility across cloud usage and related reporting, ultimately leading to optimized cloud spending. Businesses and their tech providers must collaborate and co-innovate to unlock the full potential of cloud adoption.
CIOs and CFOs are grappling with the high costs associated with migrating from on-premises infrastructure and platforms to cloud solutions. While early cloud migrations met some expectations, such as rapid deployment and reduced utility costs, they also incurred higher than expected operational expenses. Migrating to the cloud has proven to be costly in terms of consumption, human capital, data transport, and security. Investments in Cloud Access Security Brokers (CASBs), hybrid cloud providers, and managed services to counter cyberattacks are essential but continue to weigh down the potential ROI that CIOs initially counted on.