Cloudy with a chance of new (cloud) costs
While the dynamics of the cloud market bring great variability on the one hand, they are also a new discipline for IT cost management
on the other: cloud services come with financial and accounting implications in addition to technical contract details. Many executives therefore have a significant knowledge gap regarding contracts, pricing structures and the subsequent financial implications.
According to Gartner®
, with the adoption of public cloud services for infrastructure and applications, cost structures are increasingly shifting towards Opex (operational) expenses
. As a result, variable costs are also increasing, challenging budget and cost management. If managers do not take these changes seriously, the worst-case scenario is that costs can go over budget and prevent the adoption of cloud services.
This increase in variable costs
makes it harder to keep track of them. However, with the help of an IT Financial Management Tool
, it is possible to avoid the uncontrolled consumption of cloud applications.