With the growing number of cloud services, it is becoming more and more difficult to determine which ones are worth using. This article will help you identify when a cloud expense management strategy might be appropriate for your company, as well as how to implement one. We’ll also discuss some common mistakes and pitfalls that companies can avoid by implementing this type of strategy!
Cloud pricing is typically a subscription-based price. The monthly subscription fee for a cloud service often varies depending on the number of users who will have access to that particular service. This means that there is usually an incremental increase in cost when you add new users to the same service.
Use technology expense management (TEM) tools
Technology expense management (TEM) tools are an excellent way to monitor and control the expenses related to your company’s technology. Some TEM tools will allow you to download information from vendors, and give you a complete picture of what your company is spending on tech in order to plan ahead for necessary upgrades. Other TEM tools will focus on controlling costs without sacrificing the effectiveness of the technology being used by your company.
How to implement one.
Implementing a cloud expense management strategy requires the following steps:
Determine which cloud services are worth using
The first step in optimizing a cloud expense management strategy is determining which cloud services are worth using. Commonly, there are two different types of clouds: public and managed.
Public clouds are generally used by companies that want to avoid the long-term commitment of a managed cloud service. Public clouds often offer much more flexibility in regards to which vendor you use and what type of resource you need. For example, if you have access to a lot of unused capacity on your internal servers, then it may be attractive for you to use the public cloud resources instead. This can help reduce your costs and increase your revenue as well because you can charge clients accordingly based on how much they utilize the resources that you already had available. On the other hand, managed clouds are more expensive and have a higher commitment level in terms of the time frame. You will need to decide which option would be best for your company based on what factors you deem most important.
Cloud expense management
The second step is deciding how much cloud expense management software you should use. If all you want to do is optimize some existing applications so that they don’t go over budget, then investing in an inexpensive TEM tool may suffice. However, if your company has broader goals with regards to controlling expenses related to technology usage such as reducing hardware costs or monitoring suppliers’ prices online, purchasing a more comprehensive suite might be worth it depending on your needs and objectives going forward.
Implementing a cloud strategy
The third step is implementing a cloud strategy by developing policies that will help your company stay on budget.. For example,, you can create a policy that prohibits employees from using public cloud services for anything other than specific types of work because it is more expensive to use the service..