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Three Ways You Can Avoid Billing Errors on Your Cloud Expenses

Tangoe Cloud blog by Dino Dogan

It’s a nightmare scenario. You log in to your cloud provider’s billing system to check your invoice and find that your bill has increased by up to three times the normal amount. Hard to believe, but that’s exactly what happened last month for one cloud company’s customers. While that company hasn’t commented on what caused the errors—which it eventually issued refunds for—it’s easy to see how it could happen. Let’s break it down and see how you can avoid a similar situation.

Cloud solutions have become increasingly complex, and it’s not uncommon for invoices to run thousands of lines long. Making the issue worse is each cloud provider will have their own indistinguishable service names and product add-ons that add to the complexity of the billing process. And with endpoints exploding and cloud spend predicted to double in the next three years (and triple in the next five) it’s only poised to get worse.

Understandably, a lot of C-suite executives are at a loss when it comes to learning what exactly they’re paying for when it comes to their cloud expense. As a result, many executives simply trust that their cloud provider is billing accurately. But with literally thousands of things that can go wrong, this is a foolhardy approach. So what can you do? Easy: Understand, Optimize, and Control. We’ve talked about this before, but it bears repeating:

  • Understand how your organization is using the cloud and make sure you’re not paying for features you don’t need. Have a process in place to continuously audit the way assets are used in the cloud to ensure you’re getting the most out of your investment. If you’re not using something – take it off.
  • Optimize how you’re using the cloud. There is often a disconnect in how much capacity is needed versus how much data is being stored and used by your workforce. It’s easy to over-invest in your cloud strategy because you want to get the most out of it, but only pay for the scale your organization needs to grow.
  • Control how your organization is consuming cloud resources. This is key. When you have a solid grasp and understanding of the expenses allocated toward cloud usage, you can maximize your investment. Succeeding in the cloud era is only possible when you treat cloud resources like the valuable commodity it is.

The theme here is understanding your cloud spend. And it’s not as hard as you might think. The Tangoe Platform takes the guesswork out of the cloud and shows exactly where your resources are being utilized. In the process, it discovers cost savings opportunities and enables you to leverage data for spend forecasting and trend analysis. So, avoid becoming the next cloud overspending cautionary tale and get a handle on your spend.

To learn more, visit Tangoe Cloud Expense Management.