7 Reasons Why You Need Cloud Cost Management Tool

Many businesses today use a CCM (Cloud Cost Management) tool to optimize their spending on the cloud. Read this article to learn why.

7 Reasons Why You Need Cloud Cost Management Tool (And Where to Find One)

The Cloud. Do you remember the time when this sounded like a silly, fiction-like buzzword? No one imagined that a few years later, we’d be amazed by the technology. Or, that the clouds will be used by millions of people and businesses.

As time passes, more and more businesses shift to the cloud. They use clouds for data warehousing and to share information with remote workers and clients. They use it to keep information easily accessible and safely stored in a digital format.

Clouds have become irreplaceable in the world. In 2020, the total worth of this market reached $371.4 billion. With a compound annual growth rate of 17.5%, the projections tell us that this market will reach $832 billion by 2025.

Today, zettabytes of data are placed in the top storage services such as Google Drive, Google Workspace, and Dropbox, as well as private IT clouds.

Most used Cloud Storages

Source: https://www.cloudwards.net/cloud-computing-statistics/

In a few years from now, there will be over a hundred zettabytes of data placed in the cloud, which amounts to nearly half of the global data storage projected for 2025. At this point, it is safe to say that clouds are trending in the business world and we can only expect these numbers to grow.

This raises a very big question – how will businesses handle their cloud usage?

One of the biggest challenges that companies face when it comes to the cloud is controlling cloud costs. Fortunately, there’s such a thing as cloud cost optimization, used to help businesses minimize their expenses and achieve better cloud performance.

This article will tell you all about cloud cost optimization and the tools used to make this happen. Read on to learn about the top 7 reasons why you need to invest in a good CCM tool.

What is cloud cost optimization?

Before we jump at the benefits of using a CCM, let’s discuss cloud cost optimization a bit. CCO refers to the act of reducing resource waste on clouds by scaling and choosing the resources required for cloud functions.

Data analytics in the cloud can transform your business altogether. While this is impossible to analyze on your own, certain tools can help you find ways to optimize the cloud performance.

Depending on what you use for this purpose, the success of your CCO strategy can vary. Nevertheless, with a good tool, you can get insight into what you’re doing right and what you need to change to get the most out of your cloud investment.

Choosing one of the best cloud cost management tools

When it comes to choosing cloud cost management tools, Zluri is the answer to all your questions. The popular SaaS management platform has a full range of top-ranked tools to be used for cloud cost optimization.

According to Zluri, the top choice available to businesses today is Harness.

The number one CCM tool will proactively detect anomalies and tell you all you need to know about your cloud resources. It will also predict your cloud spending and help you make smart data-based decisions. Lastly, Harness allows users to automate idle resource management.

Source: https://www.zluri.com/blog/cloud-cost-management-tools/

Some of the things to look for when choosing a cloud cost management tool are:

  • Automated cost optimizatione. the option to schedule resources to turn on and off to reduce costs and manual efforts.
  • Visibility of resources. The tool you use should make various resources used in the cloud environment visible such as applications, containers, and servers.
  • State of resources. A good CCM will tell you about the state of resources, how they are used, and whether they are underutilized.
  • Multi-cloud support. Many businesses store their data across different cloud providers. If you are one of them, you need a tool that offers multi-cloud support.

Naturally, the pricing and ease of use are also important when you’re making your choice.

Reasons to invest in a cloud cost management tool

Now that you know where to find the best CCM, let’s talk about what you get if you use a cloud cost management tool.

It all starts with what the CCM can do for you. Here are just a few of the most popular functions:

  • Forecast and budget the cloud spend with a great deal of accuracy
  • Inform on the current cloud costs
  • Discover areas that can increase profitability and find the least profitable projects within the cloud
  • Give you tips on adjusting the pricing structure and re-thinking unnecessary features

https://www.jamcracker.com/blogs/fundamentals-of-cloud-cost-management

With the right tool in your arsenal, you can reap many benefits. We present you with the top seven.

https://www.techtarget.com/searchcloudcomputing/feature/5-ways-to-reduce-cloud-costs

1.    Define the cloud costs

451Research reported that 73% of US cloud users look at their cloud expenses as a fixed cost. But, these expenses aren’t fixed – they are variables. That’s why businesses often come across cost inefficiencies. Cloud service charging changes every day and interpreting their plans is not as straightforward as it might seem.

However, with a good CCM tool, you can tie all the expenses to pricing and value and figure out a fixed quote for cloud spending. You can use this data to plan and manage your budget or figure out ways to make your cloud use more cost-conscious.

2.    More transparency

A good model for cost optimization will positively impact your operational, as well as financial aspects. Thanks to the analytics feature in a CCM tool, you can monitor and better organize your cloud expenditures. You’ll know how your cloud is used, how much every action costs, and what you can do to optimize this. More transparency leads to better decision-making.

3.    Reduce waste and correct defects

Let’s say that you invest in a cloud cost management tool. It will discover the resources you are spending and detect features that are underused. You can use this information to manage neglected tools and eliminate the unnecessary. You can correct the defects and reduce waste.

As a result of the transparency and analytics, users of a cloud can find a better cost-performance balance and optimize their cloud.

4.    Smart predictions

A cloud cost management tool will provide you with more than waste information. The usage patterns you’ll get access to can be analyzed and used to make smart predictions. You can use the data to perform consolidated cost analysis and predict future expenses for the cloud. Base this on additional cloud services you’ll need, increased cloud usage, as well as scalability.

5.    Timely reviews

By performing audits of the cloud usage and resource, teams can get better control over this matter. A CCM tool can perform audits every couple of months and hand out reports to the company about cloud usage.

These reports are shared within organizations and used to categorize expenses and drop under-utilized resources in the cloud.

6.    Memory and storage management

Another great benefit of using a CCM tool is that it helps you manage your storage. With it, you can detect unused data, manage regular data backups, and check the usage of the cloud.

Going through everything stored in your cloud can take forever, but not with these tools. With these tools, organizations can find and discard data that is useless and save a lot of money in the process. It’s amazing how much is stored in clouds without actual use. The right cloud cost management tool can point you in the direction of things you don’t need and remind you to cut them loose.

7.    Multi-cloud synchronization

Chances are, your business is using more than one cloud service to store its data. After a while, your data is scattered across different clouds and you cannot find or manage information as easily as you should. When you’re handling more clouds, it gets much harder to optimize the costs or reduce the expenses.

But, not if you have a good CCM tool.

A good CCM tool offers synchronization between at least the most-used cloud services out there. This will allow you to optimize your costs across different clouds, figure out where you can save some money, and find a way to organize your cloud usage more efficiently.

The best time to optimize your cloud is now!

Who would have thought that clouds will become such a big part of our business operations? If you are using clouds for your business, investing in a cloud cost management tool is the next smartest step to take. Thanks to a small investment in a good tool, you can save a fortune on cloud costs.

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