How can companies avoid the risks of unexpected expenses related to cloud migration?

As companies shift to remote work and move business operations online because of the spread of COVID-19, they are increasingly relying on cloud services.

expenses cloud migration

Unexpected expenses and cloud migration

In fact, cloud spending hit a record $34.6 billion in the second quarter, representing a 30% bump year-over-year and 11% increase from the previous quarter. Further, nearly a third of IT budgets will be dedicated to cloud services by next year.

Tangoe advised companies about the risk of unexpected cloud migration expenses, while at the same time employees are also buying more self-service infrastructure to support working from home.

“Given the cost pressures many companies find themselves under because of the current economic environment, it is critical they employ a strategy for cloud investment that provides the best service to their organizations, while optimizing both their cloud infrastructure and corresponding spend,” said Brandon Henning, Chief Product Officer at Tangoe.

To maximize cloud investment and improve overall efficiency, companies are advised to take a few important steps now.

Achieve clear visibility into usage

An understanding of how the workforce is leveraging cloud technology plays a critical role in assessing the true ROI of these initiatives. This includes analyzing how usage has changed over time to better predict where increased or, in some cases, decreased, investment is needed.

Visibility goes beyond the IT department and extends into other parts of the business, such as finance, to ensure teams are aligned on how cloud spending benefits the business overall.

Reevaluate cloud infrastructure to optimize spend

Understanding the infrastructure purchased and how it aligns to what is required to support the business is critical for optimizing spend and cloud contracts.

Organizations may be able to shift from one vendor to another, or turn-up/turn-down reserve instances to better optimize infrastructure, spend and contracts. This requires having the right tools in place to provide the necessary visibility for making these assessments.

Establish proper tools for cloud environment maintenance for future investments

The modern enterprise will continue to shift to the cloud, so infrastructure requirements will only grow – and so will the associated costs of both infrastructure IT and unauthorized shadow IT purchases.

It is critical to ensure proper monitoring tools and processes are in place for keeping cloud costs under control. By proactively identifying areas in which spending can be better controlled, organizations are able to improve efficiency and adjust budget allocations to support future investments.

“There’s no arguing that cloud is driving the way businesses operate today. The ability to expand and manage these environments will be the key differentiator in successfully future-proofing business models and avoiding potential disruptions,” Henning said.




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