Cloud is delivering growth for companies. However, companies risk losing control over cost, security, and management as usage expands. Here are ways to address this.
How can companies manage cloud costs effectively?
To manage cloud costs effectively, companies should establish clear guardrails for cloud governance and spending. This includes monitoring usage across multiple providers, as the 2023 Cloud Radar indicates a 75% increase in the number of organizations using three or four providers. By implementing robust monitoring and prediction practices, businesses can make informed decisions and negotiate better contracts.
What role does governance play in cloud management?
Governance is crucial for ensuring that cloud investments align with business objectives and risk management. However, many organizations struggle with lax governance policies, as highlighted by the fact that only 21% of respondents base cloud capacity on an approved business case. To improve governance, companies should foster collaboration between IT and business units, ensuring that cloud strategies are transparent and collectively owned.
What is a value-centric cloud operating model?
A value-centric cloud operating model focuses on delivering tangible business value through cloud initiatives. This model encourages cross-functional collaboration, aligns cloud strategies with business goals, and emphasizes customer feedback. By adopting this approach, organizations can better track value flows and innovate solutions that meet market demands, ultimately enhancing their overall cloud effectiveness.
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