For day 5 of the “12 days of ITAM” we speak to Jesse Stockall, Chief Architect at Snow Software about managing cloud cost and usage.
We saw a rapid increase of cloud use during the pandemic because it allowed us to stay connected and adopt new technologies. Now with rising global uncertainty and potential economic volatility, we are seeing the need to justify cloud spend and potentially rein in that spending. Questions have arisen around cloud cost management; this does not mean organizations will stop using the cloud, but they are going to be searching for areas they can cut costs and reduce budgets. However, this elasticity is one of the inherent benefits of operating in the cloud, as it can scale up during periods of growth or shrink down when needing to cut costs or reduce capacity due to layoffs. Adoption of FinOps teams and practices should increase as businesses see the need to get a better handle on their cloud spend. The fundamental changes we have seen in remote and hybrid work combined with significant layoffs may lead to many new lean start-ups being founded as people are unable or unwilling to return to more traditional enterprises. These will, by necessity, be cloud-native and cost constrained, but will disrupt and challenge the incumbents which will pressure the existing players to respond. We are well past the pandemic-driven, whatever-it-takes mindset when it comes to business continuity, but instead are in a period of more fiscally conservative growth and market preservation. Organizations will now prioritize strategy behind their cloud investments in a way they did not when they were migrating to the cloud or expanding their cloud investments to deliver on digital transformation or innovation during periods of widescale growth.