Technology is essential for driving growth, but what if keeping up with the latest and most advanced technologies becomes costly for your organization?
Then that’s time to cut down. But how?
Today, IT cost optimization techniques have become mainstream where CIOs and other business executives brainstorm on how to lower expenses. They work together to assess their spending on information technology and also the factors driving costs.
However, the challenge is not just to lower the cost, but to cut additional expenses while maintaining operational efficiency. Furthermore, CIOs are expected to establish a proactive culture of IT cost optimization to strengthen their position with the CEO and the stakeholders.
Let’s talk about the top tips to lower cloud and IT costs that can help you as a CIO:
Also Read: CIO Influence Interview with Liav Caspi, Co-Founder & CTO at Legit Security
Tips to lower cloud costs
Cloud adoption continues to grow and as the investment is going beyond the set budgets, CIOs must remain vigilant. They must maximize the benefits of the cloud while reducing the costs. However, it is not always about cost-cutting, it is also about deriving the maximum value out of the investment.
Let us now take you through some tips that will come in handy.
Cloud cost optimization isn’t a one-time affair.
Often CIOs think cost optimization to be a one-time affair; it happens once and it is done. It is the biggest mistake they commit. Ideally, cloud cost optimization is an ongoing process because cloud environments are dynamic and usage patterns can change over time. CIOs must establish a continuous process to monitor and optimize costs to stay proactive. Such continuity also ensures that the organization is consistently getting the best value for its customers.
Be visible, be vigilant.
CIOs are required to remain vigilant and talk out loud about cloud usage and spending in the organization. Because transparency and visibility help every stakeholder to understand resource consumption and associated costs. Setting up a cloud network isn’t a cakewalk, it requires the implementation of tools and processes to monitor and analyze cloud usage data. With a clear understanding, CIOs can identify key areas of inefficiency and take targeted actions to optimize costs and allocate resources effectively.
Optimize through collaboration
Collaboration is the key to running an organization and when it comes to cloud cost optimization, collaboration has an instrumental role to play. This is because cloud cost optimization is a process that goes beyond the IT department. CIOs must take a step beyond and include leaders from other departments such as finance, operations, and so on to discuss points like workload priorities, budget allocation, and the impact of cost-cutting on various organizational departments. It is only by working together that CIOs can ensure to optimize costs without affecting the efficiency and productivity of the other teams.
Automation is the key.
Irrespective of your experience as a CIO, it is arduous to monitor the increasing cloud costs manually. Additionally, manually analyzing the cloud costs is vulnerable to human errors. In a world full of automation, CIOs must embrace automation tools and intelligent algorithms that help them reduce errors and streamline cost optimization. Automation tools can quickly and accurately identify cost optimization opportunities and take necessary actions to redress them.
Embrace cloud optimization tools.
There are plenty of cloud optimization tools available as a countermeasure to the skyrocketing cloud costs. Tools, such as Flexera and CLoudCheckr can analyze your entire cloud environment and identify areas where costs can be optimized. CIOs can also partner with cloud optimization companies that specialize in cloud cost optimization and they can make the most of the tools to give you an optimized cloud system. Such companies can set up advanced analytics, provide cost modelling, identify areas of potential waste, and offer recommendations to optimize based on real-time data.
Think of it as a multi-faceted approach.
Last but not least, consider cloud optimization as a multi-faceted approach. As we mentioned above, cloud cost optimization involves other departments beyond IT and encompasses various factors. It includes evaluating resource allocation, exploring different pricing models, implementing effective governance policies, and considering architectural optimizations. CIOs must embrace a holistic approach and consider the distinct needs and priorities of the organization they work for. By doing so, CIOs can achieve significant cost savings while maintaining optimal performance and meeting organizational requirements.
Cloud cost optimization is a continuous process that requires keen attention, collaboration, and automation. It is a holistic approach that involves all stakeholders from various departments in a company. A CIO must take up this responsibility, share it amongst his team members, and ensure that the accountability passes the entire hierarchy of the organization. When done wrong, cloud optimization may affect productivity.
Catch more CIO Insights: Cloud Native and Decentralized Cloud: Pros, Cons: What to Keep in Mind
[To share your insights with us, please write to psen@itechseries.com ]
