In our recent blog post Heading to the Cloud? You Can Thank Your CFO for That, we discussed how CFOs were among the early advocates of cloud computing as a means of streamlining IT expenses. If you haven’t thanked your CFO for investing in cloud computing, go ahead and buy them lunch today. But if you really want to show your appreciation, implement the following five steps to ensure you’re maximizing your cloud investment:
1) Use a “pay-as-you-go” model
A key advantage of implementing cloud solutions is that you can manage your costs by only paying for the capacity and services you actually use. However, some IT organizations drive up costs by continuing to pay for instances that they aren’t using. This is especially common within a Development and Testing infrastructure. A reputable cloud provider will help you monitor your organization’s usage, minimizing or even eliminating unused capacity.
2) Understand Your Storage Costs
Storage costs can be confusing, so get specific details from your cloud solution provider (CSP). For example, a CSP may charge you for storage volume separately from your instances. So, if you add storage volume to meet the demands of a particular campaign and then delete the campaign once it’s complete, you can still be charged for the storage volume. Assess your storage volume regularly and delete any that is currently unused.
3) Watch out for overprovisioning
It’s easy to overprovision when you’re planning out your IT resources for the year. Let’s say you’re a retailer who plans for Black Friday or Cyber Monday in August (and puts up Christmas trees in all your brick-and-mortar locations at the same time). You may be tempted to provision for an anticipated spike. But when you do that – you’re just wasting money. The cloud allows you to scale whenever you need to. So save your money, buy some more Christmas trees, and wait to scale until you really need to.
4) Be careful not to under-provision either
It’s tempting to take a “set it and forget it” approach to your cloud environment. However, without ongoing monitoring and management, you put yourself at risk for misallocation of resources. For example, you may have the right capacity for CPU but be under-provisioned for memory. This can lead to poor performance, ticked off customers and lost revenue. You don’t really want to explain that to your CFO, do you
5) Make sure the pricing plan meets your needs
I know, easier said than done, especially if your organization is new to cloud computing. When you start out in the cloud, it can be difficult to determine your usage requirements. So it pays to engage with a leading managed cloud hosting provider who has the tools and expertise to help you select the right pricing plan that will help you maximize your investment in the cloud.
Contact our managed cloud hosting team to learn more about maximizing your cloud investments while keeping your CFO happy.