We drive costs higher for the project, deployment, and ongoing operations. Yes, most solutions can be made to work, but when we do this, we leave money on the table. I am saying that we rarely focus on which solution will be the most optimized we pick the solution that better matches our emotions. I’m not saying these technologies aren’t the right fit. We need solutions that can return the greatest value to the business for the least amount of money to build, deploy, and operate.ĭon’t misunderstand me. Instead, we build cloud deployments with an eye toward the accepted or hyped solution, such as containers or serverless, rather than choosing a minimum viable solution that will drive the most optimized solution for the business. They are typically not things that would affect the business, just general cloud computing housekeeping.įinally, and perhaps least understood, is the fact that we don't often build efficient and fully optimized cloud solutions. Most of the time, cost overruns are linked to unused cloud computing servers or storage systems being allocated and left running. Cloud cost governance means that we enforce spending policies, which in turn forces cloud admins, developers, and even users to be more careful about how they leverage a cloud resource. This is different from finops activities but closely related. Second, cloud projects often lack active cost governance processes, skills, and tools. If we cranked the air conditioning to 64 degrees in the summer, would we be surprised when our electric bill came in much higher? Without actively monitoring cloud usage and costs and taking steps to reduce them to more efficient levels, cost overruns are a forgone conclusion. Organizations lack ongoing monitoring and management of cloud costs. Why is this much money being wasted? I have a few observations.įirst and most obvious, finops processes, skills, and tools are not following cloud deployments into enterprises. Also, survey respondents reported that cloud projects come in at an average of 13% over budget.Īlthough there are many reasons for cost overruns, this is egregious. If you do some quick math, this leaves 32% waste in cloud spending. When the survey asked how much of cloud expenditure is efficient, the estimate was 68%. Instead, a big chunk of cloud investment goes to waste. This latest Flexera survey on the state of cloud computing reveals that companies have a hard time deploying cloud projects that work at their most efficient. However, enterprises waste one-third of today’s cloud computing investments, according to a new survey of more than 750 businesses. Companies don’t have to deal with data center cost allocations, physical equipment costs and deprecation, and enterprise software license costs that keep going up when the service and value of the software keep going down. After all, cloud costs are much easier to predict because of utility-based pricing. I really thought most of the overspending would go away with the rise of cloud computing. Įxtra expenses became more perplexing when enterprises began to leverage cloud computing but the overruns continued. Second, most budget managers and other leaders have a tendency to expect overruns, as there are rarely repercussions for spending more than they planned. Most choose whatever resources they think they will need with the objective of achieving the best possible outcome. First, many in IT, including myself until about 20 years ago, don't really understand budgeting or how to predict what things will cost. Typically, there are a few core culprits. Budget overruns for IT projects are more the rule than the exception. IT has a long history of problems with budgets and money.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |