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Recommendations from an Analyst:
5 Steps for Cloud Cost Optimization

       
Are you having to rationalize cloud costs amid today’s macroeconomic pressures? That requires governing the cloud using cost optimization programs and FinOps strategies. ZK Research recommends these five steps for successfully managing cloud spending.

Cloud Growth = Expense Problems

30-40%

of IT spending goes
to shadow IT

of cloud resources
are either underutilized
or unused

cloud overspending in
common place

5 Steps for Reducing Cloud Spending: Tips from ZK Research

1. Identify your cloud cost management challenges

  • Strategic and logistic challenges
  • FinOps frameworks and collaboration
  • Visibility into cloud and financial information

2. Solve those problems to drive at cost savings

  • Scope your cloud estate using technology and integration
  • Auditing and inventory work is foundational
  • Advanced analytics and AI generate insights

3. Act on identified savings and automate processes

  • Prioritize your response efforts and accelerate time-to-savings
  • Closed-loop automation and support services enable fast action
  • Experts offer market price indexes, contract negotiations, and more

4. Develop an ongoing program to govern cloud costs

  • Variable IaaS costs require more financial oversight
  • Establish disciplines for cataloging, evaluating, and optimizing
  • Overstretched, internal teams need more support

5. Leverage a solution and service to help you

  • Remove the burden of integration, automation, and savings insights
  • Professional services can offload manual cost optimization work
  • Focus on reaping the benefits of the cloud – not managing it

Cloud Expense Management:
How it Helps with FinOps and Cloud Governance

Observation

Sees the corporate cloud estate holistically but also granularly

Detection

Discovers redundant SaaS/UCaaS apps that negatively impact budgets

Recognition

Pinpoints underused IaaS services that contribute to overspending

Optimization

Offers data-driven suggestions to reduce waste and cut costs

Automation

Automates service modifications and eases management burdens

A well-implemented Cloud Expense Management solution can result in 20% to 40% savings and triple-digit ROI in the first year.

– Zeus Kerravala, Founder and Principal Analyst, ZK Research

Buyer’s Guide:

What to Look for in a Cloud Expense Management Solution