Cost in focus
Enormous growth is expected in the use of cloud platforms in the future, and cost control is one of the highest priorities among companies. Much of the reason is that it is easily accessible, easy to get started with, and you only pay for what you use in arrears
To meet these challenges, we have thought differently when we developed Cloud Cop – so that it becomes easy, efficient and affordable to have better cost control.
It’s not just about reporting
Cost control is about more than fine reports and budgets that give you a situation report that you need to optimize and take action.
There is nothing wrong with reporting and budgeting, in fact very important because you get a picture and more control over whether something is going in the wrong direction. But if you only base cost control on reporting something that points to a consequence that has occurred, so that you have to run after cleaning and optimizing, then it can quickly become a reactive effect.
And if the reports also only refer to technological dimensions in the platform, then the reports may have low value for the business and those who are responsible for finances.
The right balance
An optimal situation with cost control in cloud platforms is to keep a balance between maintaining speed, and being able to brake when it goes too fast.
The challenge is that sometimes it goes so fast that you do not have time to brake until it has gone too far, which can lead to overconsumption and the need for reactive measures.
The opposite effect can be that you hold back too long or brake too much due to uncertainty, so that the gain is lower than expected.
The goal of using a cloud platform is precisely to take advantage of the capabilities these ecosystems provide, and then it is not very profitable if the uncertainty regarding costs holds back.
By establishing proactive rules, it will be easier to maintain a steady and controlled speed. In addition, you will also achieve more stability and profitability.
But is it not enough to increase the frequency of reporting costs in addition to using forecast forecasts? Yes, it is of course a prerequisite for being able to act early with measures. Nevertheless, there is a certain risk that you will end up behind, and this will require good monitoring.
Because you can set up cost reporting and cost optimization of what you have, but the challenge may still arise in connection with everything new that is used or changes that happen.
This is where cloud governance and rules come in as important and proactive measures, as governing how the platform should be used, so that you avoid cleaning up afterwards.
By establishing rules for tagging all new components that are used, you achieve a much higher value in the reporting, because you ensure that the components are tagged with associated cost dimensions.
That way, you will be able to differentiate costs so that you can allocate them to the right place and more easily see which services are contributing to cost overruns.
Price limitation of SKU
SKU is an unit in the cloud platform, and each SKU has a calculated monthly price.
If you establish a rule that sets a limit on how much a SKU must cost per month within a type of service, then you will avoid using services that are above the price level approved for the company.
Having a conscious relationship with which services the company wants to use will also be able to help control costs.
Establishing rules that define which service categories are allowed also helps you limit potential cost overruns, by steering away from categories we know are cost-driving.
Cost control is thus not just about reporting and running after and optimizing; it is also essential to establish proactive rules in the platform that help keep costs within your limits.