The rapid adoption of cloud infrastructure has transformed how businesses scale and operate. Gartner projects global spending on public cloud services will increase by 20.4% in 2024. While this growth fuels innovation, many organizations struggle to control cloud expenses. According to FinOps Foundation, six out of ten companies overspend on cloud services, and 75% report increased cloud waste​. Despite these challenges, optimizing cloud costs remains a critical issue for mid-market, large enterprise and private equity firms alike.
With millions of lines of billing data to process and a complex array of cloud services to choose from, managing cloud costs effectively requires more than just internal expertise. A third-party perspective on cloud optimization can help bridge the gap between IT, finance, and operational performance. Here’s how an external partner can make all the difference.
The Cloud Cost Dilemma: An Outside View Helps Clarify
Businesses are often too close to their operations to notice inefficiencies. Cloud infrastructure bills can easily grow as organizations scale, with services being overprovisioned or poorly matched to actual workloads. According to a StormForge study, nearly half of cloud-based businesses struggle to control costs. Private equity firms, mid-market and large enterprises may experience these challenges in unique ways, but they often share a need for clearer insights and better management.
Engaging a third party with cloud optimization expertise ensures that businesses aren’t just reacting to billing surprises after the fact. Cloud cost management (CCMO) services help organizations stay ahead of these issues by:
- Providing tailored, data-driven insights: Leverage the expertise of cloud cost specialists who understand the nuances of cloud billing structures and can distill complex data into actionable recommendations.
- Identifying hidden waste: Isolated decisions by developers, such as choosing oversized instances or neglecting idle resources, can silently drive-up cloud costs.
Our partnership with Vega Cloud allows us to take a comprehensive view and optimize resource usage on an ongoing basis.
Maximizing Cloud ROI with Rightsizing
Rightsizing is a critical element of cloud cost management. Whether it’s about choosing the correct instance size or monitoring idle resources, the goal is to align cloud resources with application needs. However, businesses often miss out on cost savings opportunities due to the sheer complexity of cloud environments.
A third-party partner brings fresh, expert eyes to this process. An experienced CCMO team partners with clients to eliminate waste, improve cloud ROI, and deliver ongoing cost optimization. For instance:
- Avoiding under or over-provisioning: External cloud specialists provide ongoing support to ensure the right balance between performance and cost, continuously adjusting resources to reflect current needs.
- Maintaining service levels while reducing costs:By identifying areas where cloud resources can be reallocated without compromising service, external partners optimize the cloud setup for efficiency.
The Software Licensing Trap: A Hidden Opportunity
Managing software licenses is another major cost factor within cloud environments. Without a robust process for tracking and managing licenses, organizations often overpay for unused or underutilized software. A CCMO team identifies unneeded licenses and optimize software spend, resulting in significant cost reductions. This frees up capital that can be reinvested in other areas of the business.
Optimizing Cloud Storage with the Right Expertise
Cloud storage costs can spiral out of control when businesses fail to assess their storage needs regularly. Many organizations default to expensive storage solutions, like block or file storage, without considering more cost-effective options, such as object storage. An outside perspective can identify the right storage solution based on the organization’s actual data and access needs.
For example, by regularly auditing storage usage and making as-needed adjustments, businesses can realize significant cost savings without compromising performance.
Continuous Monitoring with a Third-Party Partner
Effective cloud cost management is not a one-time activity. It requires ongoing monitoring and adjustment. A third-party partner can bring continuous focus to cost management, ensuring that cloud expenses remain aligned with strategic goals. A strong CCMO program offers:
- Ongoing optimization reports: E78’s relationship with Vega Cloud allows us to deliver real-time reports that offer insight into cost spikes before they affect the bottom line, allowing businesses to adjust as needed.
- Third-party accountability: A partner like E78 offers not only the tools but also the expertise to align cloud strategy with long-term business goals.
100% ROI on CCMO Services: Guaranteed Results
Investing in cloud cost management should provide measurable returns. E78’s CCMO solution guarantees a 100% ROI on fees paid by clients. This ensures that every dollar invested into cloud optimization is recouped through cost savings. Unlike self-managed platforms, which often result in additional expenses and missed opportunities, third-party managed solutions wrap cloud optimization into a single, cost-effective service that aligns with client success.
Conclusion: The Value of a Third-Party Perspective
In an environment where cloud spending is both essential and potentially explosive, an external cloud optimization partner provides valuable ROI. For private equity, mid-market and large enterprises, leveraging a third-party perspective can provide the strategic insight necessary for driving continuous cloud cost optimization, improving ROI, and fostering overall IT cost management and business value.
Ready to start your cloud optimization journey? Contact E78 to unlock the full potential of your cloud investment.
