Posted by aionol | 29 DEC 2017

Why Companies Are Wasting $10 Billion In Cloud Spending

One of the appeals of moving to the cloud are cost savings. Cloud providers promise to save businesses a lot of IT expenditure when migrating to the cloud. It is one of the biggest selling points of cloud computing. But are cloud providers really experts in saving money in the cloud? Yes and no. It has now […]

One of the appeals of moving to the cloud are cost savings. Cloud providers promise to save businesses a lot of IT expenditure when migrating to the cloud. It is one of the biggest selling points of cloud computing.

But are cloud providers really experts in saving money in the cloud?

Yes and no. It has now been estimated that up to 35% of cloud spending is wasted. This amounts to more than $10 billion. For a technology that is supposed to save businesses’ money this is a staggering statistic.

In general it is true that the move to the cloud is a cost effective solution for most businesses of any size. However, it depends on how it is done.

Why Companies Are Wasting $10 Billion In Cloud Spending

Why Companies Are Wasting $10 Billion In Cloud Spending

What’s Causing Higher Expenditures?

The confusing and complex pricing and billing practices of many cloud providers is one of the major reasons that businesses have higher expenditures than necessary.

Let’s take Amazon Web Services as an example. They are one of the leading cloud providers in the market. Their pricing and billing practices leave room for improvement. AWS has more than 70,000 price points for their cloud computing products. How are you supposed to know and find the right one for you? With this kind of information overload, businesses are likely to step into the trap of overspending.

On top of that, a typical AWS cloud bill often contains an endless list of line items that represent different resource types and price points. It is therefore almost impossible for businesses to understand where their money is going to, and if it is used in the most effective way.

Choose a provider that practices transparency when it comes to pricing and billing

If cost savings is one of the main reasons your business is migrating to the cloud, you need to make sure you understand the pricing and billing practices of your cloud provider. Otherwise you are likely to waste 35% of your cloud expenditure.

At Iono Inc., we walk our clients through the pricing and billing practices for each of our solutions. Get in contact today to ensure your cloud migration is truly cost effective.

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