Is your company managing its Cloud infrastructure like a standard data center? In other words, is the IT department purchasing capacity but failing to scale the infrastructure up or down to address changing performance needs?
Although companies using the Cloud may be implementing tools essential for ensuring systems are functioning properly, they are neglecting to utilize other tools designed to take complete advantage of the Cloud's inherent flexibility and affordability. Consequently, these companies frequently come to the conclusion that the Cloud is "too expensive" and replace it with a system that is actually more expensive than the Cloud.
What is Professional Cloud Expense Management and Why Do Companies Need It?
Cloud expense management strategies are developed and enacted by experts with in-depth knowledge of how to efficiently provide tactical benefits to companies utilizing the Cloud. They understand companies must be able to access cloud-based tools on-demand that are essential for optimizing their success and competitiveness while remaining within budgetary constraints. Cloud expense management services further facilitate cost reductions without compromising organizational performance in any sector.
The top 5 advantages businesses enjoy when utilizing cloud expense management services are:
1. Significant declination in cloud-based expenses by ensuring organizations pay only for the capacity needed to maintain operations. All too often, companies recklessly self-generate waste and drive up expenses by paying for things they do not use. Excessive expenditures on the Cloud is often seen in company testing and development infrastructures.
2. Neglecting the ability to scale by over-provisioning, or including extra storage capacity in their budget. Confusion over storage costs frequently occurs when companies are billed for storage apart from their instances. For example, deleting an instance without deleting its associated storage volume means being charged unnecessarily by a cloud provider. Relying on cloud expense management services means eliminating this type of frivolous expense.
3. Examining up-to-date audits delineating the current cost of IT infrastructure vs the cost of using the Cloud helps create a precise picture of potential expenditures that will be consumed by cloud resources. Cloud expense management takes care of calculating indirect and direct costs responsible for productivity loss, over-provisioning and paying for non-essential capacity.
4. Virtually eliminating human error by disposing of printed reports and paper receipts is one of the primary reasons organizations need cloud expense management. In some cases, fraudulent practices and/or inadvertent inconsistencies are inflating budgets. This can negatively and substantially impact a company's scalability, viability and profitability before relevant departments realize the scope of such an impact.
5. Without the Cloud, employees could not make the most effective use of their time by working "on the go" and benefiting from the greater flexibility provided by the Cloud. Companies who think the Cloud is too expensive will be happy to learn that cloud expense management services excel at getting the costs down low enough for them to utilize the Cloud, grow their company exponentially and dramatically boost their competitiveness among other industry organizations.
Cloud-based Companies in the 21st Century Dominate Global Networks
As an influx of companies consistently migrate their systems management operations into the Cloud, experts predict businesses will likely choose platforms composed of several clouds rather than one IaaS. In addition, this rapid migration to the Cloud is expected to overwhelm lesser technologies as organizations deal with independently generated problems emerging within hierarchal operations that demand advanced cloud technology that one vendor may not be able to offer.
Taking advantage of cloud expense management means the difference between a successful company and a stagnant, potentially bankrupt company. Furthermore. the ability of a business to execute robust recovery efforts involving information disaster events will make cloud technology the vanguard of IT infrastructure systems. As businesses depend on the cloud to store vast amounts of data as a way to reduce overhead costs, cloud expense management can take control of relieving burden of paying for unnecessary expenses associated with the Cloud.
Contact us today to learn more about the benefits of cloud expense management.
About the Author: Jeff Poirior
Jeff brings 25 years of telecommunications and information technology management experience in voice and data networking, server support, and telephony and security; with a significant emphasis on customer service. Prior to joining Valicom, he was chief of the infrastructure support section for the Wisconsin Department of Transportation. Jeff was the vice president of operations for CC&N, overseeing telecommunications, help desk, data and desk side support services. Prior to that, he served as the associate director of technical resources for Covance, responsible for managing systems and network operations supporting 1700 users in Wisconsin and Virginia. He has also led data center operations at Magnetek Electric, supporting mainframe systems, client/server applications, telephony systems, and computer-aided design. Jeff holds a bachelor’s degree in business administration from Cardinal Stritch University and a master’s degree in business administration from University of Phoenix. In addition, Jeff is a past board member of the Wisconsin Telecommunication Association.