4 Ways Your Cloud Spend Is Wasted
As organizations increasingly turn to cloud infrastructure, SaaS costs can quickly get out of your control. This article outlines 4 factors that lead to waste and how to avoid any overspend.
Due to the nature of cloud software, it may seem that your SaaS subscriptions are drastically cost-effective. Although cloud services provide users with flexibility and allow organizations to grow extremely fast, these apps pose crucial financial and security risks. Because of uncontrolled SaaS adoption, organizations quickly lose track of their cloud spending across an increasing amount of licenses and vendors. Therefore, the absence of centralized SaaS management system cause waste and overspend across businesses. Here are 4 other crucial ways your cloud spend is wasted:
Cloud Expenses Are Complex
While deploying or using SaaS applications is simple, cloud pricing is much more complex than you may think. Cloud services fundamentally change the way your organization procures and pays for technology. Different vendors charge for their apps differently. Pricing can also change depending on the region, utilization time, and many other factors. Hence, cloud services make software expenses less predictable than any long-term licensing model.
Cloud vendors allow administrators or even regular employees to add more licenses, users or subscriptions than allowed in the contract. This tactic allows application usage to continuously get bigger. Your employees can easily get a new license, not realizing that this will cause overprovisioning of this cloud service. Not only this instantly leads to overspending and waste, but it also makes renewal negotiations even more challenging.
Absence of Accurate and Real-Time Data
In modern age, employees are sure that more applications they use, the more efficient and productive they become. As they adopt more cloud apps, it becomes harder for organizations to understand their expenses and find duplicate or redundant subscriptions. Additionally, with today’s agile development, various departments could automatically sign up for numerous applications without realizing the total costs of the deployments. Duplicate and redundant subscriptions add up quickly. Unfortunately, organizations lack of accurate and real-time reporting to view and adjust their spend.
Traditional Expense Management Tools
In most cases, organizations still use traditional expense management tools like spreadsheet tables to report and control their cloud spend. However, companies need to realize that this comes with problems. Traditional expense management requires weeks or even months of hard manual work before completing one spreadsheet table. On top of that, manual spend reporting is prone to errors and highly vulnerable to frauds. Thus, organizations should automate cloud cost optimization by deploying a robust SaaS management system.
How to Take Control over Cloud Spend?
A lot of businesses are spending significantly more than they need on cloud services. However, by using a comprehensive tool, SaaS expense optimization becomes an efficient and real-time process. Binadox SaaS management platform provides the smartest and easiest way to govern and manage your cloud spend and utilization.
Binadox eliminates all factors that lead to budget waste or overspending. Binadox helps businesses to get the most accurate visibility into every single cloud subscription and identify suspicious expenses or trends via one powerful dashboard.
Click here to learn more how Binadox can optimize cloud spend and how else it support your business.