The historical challenges

CIO’s and CFO’s play important roles in any organization but historically the two have faced challenges working together in terms of budget and technology investments.

In fact, it remains so rare that only 28% of 303 IT and finance professionals surveyed said they have a formal reporting collaboration between IT and finance.

That is worrying low, especially when you consider that cloud strategies implemented by IT departments biggest challenge in 2019 is cloud cost management.

Budgets tend to be the largest point of friction and usually CIO’s invest in assets that may not always have a direct return of investment.

The high costs related to investments in cloud services are now causing clashes between CFO’s and CIO’s.

A lot of the cloud cost management budget issue can be found in the disconnect between IT and finance departments which will ultimately hurt the business.

IT departments are often unaware of the burden ballooning cloud budgets have on finance, mostly because their focus, understandably, is elsewhere.

51% of finance respondents surveyed said they occasionally overspend on cloud resources compared to 37% of IT respondents.

68% of finance respondents said they are alerted to overspend only after it’s too late while 80% of IT respondents said they are alerted beforehand.

The poor communication between the two departments will have severe negative impacts on overall business if cloud services are not managed better in the future.

80% of the IT and finance professionals surveyed said that poor cloud cost management causes issues like slowing cloud adoption, crippling innovation, lowering the quality of services, under-utilization of resources and increased costs.

Over half of the respondents surveyed said that cloud cost management is a daily worry but it is clear that the majority are currently failing to do anything about it.

The survey suggests the reasons causing this could be fears of hindering innovation, believing the amount is too small and not worth acting on or because they are not doing any form of showback/chargeback.

But budget concerns related to cloud resources ARE a huge area of concern that needs to be acted upon now.

In fact, 58% of respondents said they overspend their budget on cloud, and of those, 68% said they overspend by up to 25% more than budgeted.

Tackle cost optimization challenges

That is why it is so important to tackle cloud cost management challenges now and why Kostner provides a service combining the intelligence of AI with business acumen to give you independent cloud insight.

Managing, tracking and acting on the dynamic changes in cloud costs and services is understandably very complex and in our opinion beyond what we can expect from any human.

By using AI, Kostner is able to analyze the millions of possibilities available to find the best possible way to run cloud at optimal costs and tailored to specific needs.

Cloud cost optimization should be a priority for CIO’s and CFO’s and this service will make that manageable ensuring you stay ahead instead of inflating your monthly spend.

Interested to learn more about cloud cost optimization? Subscribe to our blog or follow us on LinkedIn.

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According to Gartner over half of the roles in government IT will be new roles by 2023 that currently do not exist today.

Much of this change and creation of new roles is down to the emergence of cloud.

Although the Gartner survey focuses on government IT, the trend of new roles related to the shift to cloud is something all enterprises will be challenged with in the coming years.

Almost 40% of governments expect cloud services to be the technology area where they will spend the greatest amount of funding in 2019.

This aligns with private sector enterprises who also look to continue their investment in cloud services, spending an average of 24% more on cloud this year than they did in 2018.

Gartner’s annual IT forecast highlighted cloud computing infrastructure and applications as the fastest growing IT spending category, which looks to increase by almost 60% through 2021.

With cloud transformation comes the need for new skills which will result in new or changed roles in any organizations IT infrastructure.

Data center management roles, for example, will decline as a result of this shift, creating opportunities for cloud management roles.

One role being highlighted as a priority in the ongoing shift to cloud services is that of a cloud cost manager.

A recent survey estimated that current wasted cloud spend is about 35% and could be even higher than that.

Enterprises and government IT say that cloud cost optimization and cloud cost management is a priority but very few have addressed this issue.

In fact, over 38% of those asked say they have not introduced new roles in 2018 mostly due to insufficient resources and skills.

That is why Kostner uses AI and Big Data to offer cloud cost management as a service, giving you actionable solutions to optimize cloud spend.

Tracking and acting on the dynamic changes in cloud costs and services is very complex and beyond what is humanly capable.

By using AI, Kostner is able to analyze the millions of possibilities available to find the best possible way to run cloud at optimal costs and tailored to specific needs.

Managing cloud properly is not only time consuming but keeping up with services, price models, consumption offerings, and licensing options can be extremely challenging.

That is why Kostner believes in the formula: AI + BI = CI.

Kostner’s artificial intelligence plus business intelligence makes our cloud intelligence the best way to optimize and manage cloud costs.

Whether you are in the private or public sector, cloud cost optimization should be a priority in order to stay ahead of inflating monthly spend.

Interested to learn more about cloud cost optimization? Subscribe to our blog or follow us on LinkedIn

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