Rising Cloud Costs: Trends and Cost-Saving Strategies
Cloud computing has long been the key to agility, scalability, and cost-efficiency. But as many organisations are now discovering, the financial reality of cloud isn’t quite living up to the promise. Rising costs, unpredictable pricing models, and limited flexibility are prompting businesses to re-evaluate whether their cloud investments are still working in their favour.
Cloud Costs Climbing Across the Board
According to recent research involving more than 500 IT professionals, cloud-related expenses have increased for a significant majority of organisations. Of those surveyed, 59% reported a rise in spending over the past year, with 37% seeing increases of more than 25%.
At the heart of the issue are the market’s dominant players, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), whose complex billing structures and premium services are making it harder for businesses to forecast and manage their costs.
The Hidden Price of Flexibility
While cloud services often begin as cost-saving solutions, many businesses are caught off guard by the accumulation of hidden charges. These can include fees for public IP addresses, outbound data transfer, enhanced security features, and monitoring tools, all of which add up quickly.
What’s more, many organisations find themselves effectively tied in to a single provider. Known as vendor lock-in, this dependency, driven by technical limitations and contractual commitments, can make switching platforms difficult and costly. It’s no surprise, then, that businesses are beginning to look for alternatives that offer greater transparency and control.
Taking Back Control: Cost-Saving Strategies That Work
More than half of the organisations surveyed are already taking steps to tackle rising cloud expenses. Cost optimisation is becoming a strategic priority, and there are several approaches delivering results:
- Reviewing cloud usage regularly helps prevent over-provisioning and identifies underused assets that can be downsized or switched off.
- For predictable workloads, committing to reserved instances or savings plans with providers can result in significant discounts.
Future Challenges: AI, GPUs, and Sustainability
The increasing demand for AI and machine learning has driven up the cost of GPU-based cloud services, especially from major providers. As these technologies become more embedded in business operations, the pressure to find cost-effective GPU solutions will continue to mount.
Sustainability is also becoming a more prominent concern. Data centres are major energy consumers, and with usage set to rise, businesses are actively seeking cloud partners that align with their environmental values. The shift towards greener, more sustainable cloud solutions is likely to shape the market in the years ahead.
Rethinking the Cloud
While quality is important when it comes to IT support, so too is the relationship with your IT support provider. Without a fundamental understanding of your business IT estate and the work that you do, you may be presented with solutions that aren’t suitable, and fixes may take longer. This can lead to a fractious relationship that ultimately results in a worse service.
With a 24/7 global service desk, you’ll generally benefit from engineers who’ll work solely on your account, and will thus be intimately familiar with your organisation’s systems and processes. This level of familiarity ensures that support is not only prompt but also tailored to your specific needs. You won’t have to worry about your critical support being outsourced to disconnected third parties – your service desk engineers will effectively be in-house.
Reduced stress and improved productivity
Cloud computing is at a crossroads. As organisations grapple with mounting costs, a lack of cost transparency, and reduced flexibility, the need for smarter, more strategic cloud management is clear. Whether through cost optimisation techniques or the adoption of alternative providers, businesses have an opportunity to regain control and realign their cloud infrastructure with both operational and financial goals.
Need help navigating your cloud strategy? Sota’s expert cloud services can help reduce cost, improve visibility, and future-proof your infrastructure. Get in touch today to find out more.