Top reasons for higher cloud costs

Like every other solution, cloud-based solutions can overwhelm your organization’s budget if not optimized. A Gartner report estimates the cloud costs to reach $364,062 million by the end of 2022.

1. Poor visibility: There are several reasons for poor visibility on the cloud, such as lack of governance, problems with opaque containers, and blind spots. In addition, with rapid cloud adoption and changing customer demands, the predictability of cloud costs is disrupted.

2. Overprovisioning: The best way to reduce overprovisioning costs is by identifying underutilized resources, terminating idle instances, and checking for memory leaks. Many organizations choose a cloud-first approach and overprovision resources.

3. Data gravity: zbusinesses end up paying for migrating data to the cloud and back to an on-premise setup. It is a highly inefficient and costly approach. One way to avoid data gravity is to have a project infrastructure management plan.

4. Pricing issues: Cloud pricing can be a complex and opaque process. This can lead businesses to spend more time researching the best deals or negotiating directly with providers. Take an example of cloud calculators provided by different service providers.

5. Complexity of cloud contracts: Cloud contracts need to explain the exit strategies for a business that wants to opt out of the services. It should also include add-on details like connectivity and data transmission costs.