Cloud cost management is a critical consideration for businesses today. Of course, there are many benefits that come with moving to the cloud, but the fear of an impending recession and rising costs across the globe has resulted in many companies tightening their budgets.

As an alternative to deploying enterprise- and production-grade applications across multiple cloud services, more companies are consolidating their use of cloud services. It is important to understand what value the cloud can provide for your business and how cloud consolidation might benefit you moving forward.

The Values of Cloud Computing

Migrating to the cloud can have a big impact on your business -- it can save you time and money. By running workloads in the cloud, you don’t have to worry about undifferentiated or high-maintenance tasks such as installing and maintaining operating systems, upgrading software, or backing up information. This gives you more freedom to focus on what really matters: building your apps and running your business without the hassles of managing all those technical details manually.

As a tech leader, you’re likely already aware of the benefits of cloud-based technology. Specifically, the cloud offers high-performance tools right out of the box. With cloud technology, you have access to all kinds of Agile software development and deployment tools available at every level, from microservices to serverless functions. Your systems will be more nimble than traditional virtual machines or servers, which will make them cost-effective and will also help you stay on top of updates and modification needs.

One of the most common concerns about cloud adoption is security. But ironically, many cloud providers spend tens of billions of dollars on multilevel security measures. Often, they do a better job than individual enterprises ever could when it comes to protecting against firewall and denial-of-service attacks. By delegating your cloud security to a trusted source, you can avoid these pitfalls.

Changing Times Are Driving Up Cloud Costs

Although cloud platforms are incredibly beneficial, the current landscape has drastically increased the costs associated with their use.

For example, as we move further away from the global pandemic that caused massive disruptions in supply chains and business practices, we are seeing cloud costs rise. Some tech vendors have hiked prices by 30% over the last year. Google Cloud data costs have increased by as much as 50% for some services, and more increases are expected to follow.

Because prices associated with maintaining and expanding cloud services are higher, it makes sense that more companies are consolidating their cloud platforms in an effort to meet their organizations’ budgets -- without losing out on the benefits that cloud architecture has to offer.

Consolidating the Cloud to Address Budget Woes

If you are concerned with how to cut down cloud costs, remember that consolidating can boost your company’s bottom line. When IT leaders take steps to consolidate their cloud services into one package on one platform, the pricing model works in their favor.

It is essential that your company considers where your cloud architecture and maturity actually stand. What cloud source will you be using? What kind of workloads can you run on it? What will migration look like?

Because each cloud has a different deployment architecture, it might not be as easy as lifting and shifting the application onto another platform. Tools that facilitate these transitions are still relatively new, so you might have to invest time and effort into learning how they work. Do your due diligence and plan your migration beforehand, and you’ll find that solutions run smoother and stay relevant longer.

When your business is ready to start consolidating, remember:

Optimizing the cloud for your business is crucial in reducing how much money you spend on your cloud storage. Having several applications deployed on multiple cloud platforms results in high costs, wasted hours, and additional security efforts. By consolidating your company’s applications onto one cloud platform, you save money by reducing the overall costs associated with monthly maintenance.