In 2024, companies are dealing with a big problem and it is the rising costs of cloud computing. Tangoe, a company that assists businesses with expenses, looked at $34 billion spent on IT to offer advice to finance, IT and procurement leaders. The report discusses the difficulties of using cloud technology and how artificial intelligence (AI) plays a role.
Tangoe says the best way to save money is by using the cloud more efficiently. Connecting directly to the cloud and comparing different providers can cut costs by a lot – between 50-70%. He further says AI is crucial for finding the best and cheapest cloud services. Cloud pricing is confusing, so AI helps make sense of it all.
Tangoe recommends being smart with money operations (FinOps). This means having good plans in place to avoid sudden spikes in cloud costs caused by AI. His experiences show that it is important to look at everything in a multicloud setup and not just some parts of it.
To deal with rising cloud costs in 2024, Tangoe says companies should be smart from the start. Tangoe Vice President Eric Witt suggests:
Watch costs closely and use alerts to tell decision-makers if costs are getting too high. Make changes before spending too much.
Use discounts for a long time to pay less for cloud services. Talk to providers to get lower prices by agreeing to use more of their services.
Use only what you need and stop services when you don’t need them. This is called optimizing usage.
Use only the tools you really need and get rid of extra ones.
Tangoe also clears up some wrong ideas like thinking your cloud costs are under control when they are not. They say everyone has some waste when using the cloud, especially when a business is growing.
