Cloud Computing has been indispensable during the ongoing pandemic, giving organizations around the world access to the remote work, applications, storage and collaboration capabilities they need to remain operational. However, many will likely experience some sticker shock when the bill comes due.
One of beauties of the cloud is how easy it is to add new infrastructure and services as the need arises. Maybe too easy. With organizations rushing to support a suddenly remote workforce with cloud services, they run the risk of wasting resources and letting costs spiral out of control.
A cloud governance program can help organizations eliminate waste. A well-designed governance framework allows IT organizations to exercise control over the cloud environment through the enforcement of rules, policies and processes that formalize how the organization will access, use and retire cloud resources.
Cloud waste was an issue long before the current health crisis. In late 2019, Gartner analysts estimated that more than $17 billion in cloud spend will be wasted in 2020. The firm concluded that without effective cost-optimization processes, organizations will overspend on cloud services by 40 percent.
Much of the waste results from a lack of oversight. One recent study found that only about a quarter of companies have a centralized strategy for cloud usage, while nearly half acquire cloud resources on an entirely ad-hoc basis. Users with no particular technology skills can simply go online and get what they need by moving a few sliders and clicking a few buttons.
That simplicity might deliver immediate benefits, but it creates a host of long-term challenges. Deployed without IT’s knowledge or consent, these rogue cloud instances increase the risk of duplication of services, inadequate protection and unnecessary spending.
Overprovisioned infrastructure is one source of waste. The uncontrolled proliferation of cloud instances across multiple providers often results in duplicated resources and excess capacity that is rarely, if ever, used. Orphaned cloud volumes, underutilized databases and extraneous virtual machines can quickly drive up costs by 30 percent or more.
Idle resources also increase waste. VMs and cloud instances provisioned for non-production uses such as development, staging and testing are typically only used during regular working hours. Very often, however, they are left running 24x7. With major cloud providers billing on a per-hour or per-minute basis, that idle time can eat up a huge chunk of your cloud spend.
RMM Offers Guidance
RMM Solutions, a Cloud Service Provider, can work with your organization to establish formal cloud governance guidelines for provisioning, configuring and accessing cloud resources. Our chief technology officer and cloud engineers can assess your current usage and offer guidelines for right-sizing your cloud spend.
We can help you determine how many cloud applications and services are actually being used, who is using them and how they were provisioned. This will be important for identifying cloud resources that may be either unused, underutilized or duplicated.
Once all cloud assets have been identified, we can help you establish guidelines for what applications and workloads are appropriate for the cloud, how and when they should be migrated, what security measures should be developed, and who should have administrative privileges. After that, RMM can also help with the day-to-day monitoring and administrative duties to help you maintain appropriate resource utilization with predictable costs.
Cloud resources have been a lifeline for many organizations for the past few months. However, with expanded use of the cloud comes greater potential for waste. Give us a call and let us help you reduce waste and improve efficiency with a cloud governance program.