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A Strategic Approach to Cost Management in Cloud Computing
A Strategic Approach to Cost Management in Cloud Computing

We all love the unparalleled scalability, flexibility and (when managed properly) cost-effectiveness that Cloud computing can bring. If there’s one thing we’ve learned from our 2023 South African Cloud Survey, it’s that businesses still have very real – and valid – concerns when it comes to keeping Cloud costs in check.

In fact, our survey revealed that cost optimisation post migration is the number one challenge companies across South Africa face when it comes to Cloud.

The dynamic nature of Cloud – which is something we love most about it – often makes cost management uniquely challenging. But it’s not impossible. Not when you have a strategic approach in place.

Embrace a Cloud-Centric Cost Culture

This means valuing optimisation and cost-conscious decision-making. Organisations should encourage cross-functional collaboration between their finance, IT, and operations departments to align objectives and priorities. By instilling a Cloud-centric cost culture, businesses can empower employees to make cost-effective choices and foster a mindset that continually seeks optimisation.

Understand Cloud Service Pricing Models

There is more than one way to charge for Cloud services, and these pricing models include everything from pay-as-you-go to reserved instances, and spot instances. By analysing workload patterns, you’ll have a better idea which pricing model is the most appropriate for each application or workload. For predictable workloads, reserved instances can provide significant cost savings, while spot instances can be leveraged for non-critical, time-flexible tasks.

Leverage Automation and Orchestration

Tech was ultimately designed to do the hard work for you. That’s why automation and orchestration tools play a pivotal role in cost management by optimising resource provisioning and utilisation. By automating processes such as instance sizing, auto-scaling, and workload optimisation, businesses can ensure optimal resource allocation, thereby eliminating unnecessary expenses. Leveraging Cloud-native tools and third-party solutions can also provide valuable insights into cost trends, enabling proactive decision-making.

Monitor, Analyse, and Optimise

Continuous monitoring and analysis of Cloud resources is essential for cost optimisation. Every business should establish robust monitoring practices to gain visibility into their resource utilisation, performance metrics, and cost patterns. By leveraging monitoring data, you can identify underutilised resources, right-size instances, and detect inefficient spending. Regular optimisation reviews, coupled with resource tagging and cost allocation, can help pinpoint cost drivers and enable budgetary control.

Implement Effective Governance and Control

This involves defining policies and guidelines to manage resource provisioning, access controls, and expenditure limits. Implementing tagging strategies to track costs by project, department, or application and enabling better cost allocation and accountability. It’s also a good idea to consider implementing cost management tools provided by Cloud service providers or third-party vendors to gain deeper insights and control over your Cloud spend.

Embrace Hybrid and Multi-Cloud Strategies

With Cloud, you’ve got options. Hybrid and multi-cloud approaches can provide cost optimisation opportunities by leveraging the strengths of different Cloud platforms and avoiding vendor lock-in. By carefully assessing workloads and determining the most suitable deployment models, you can optimise costs by selecting the right Cloud provider for each use case. A multi-cloud strategy also allows you to take advantage of competitive pricing and avoid service disruptions.

Continuously Evolve and Optimise

The Cloud computing landscape is constantly evolving, with new pricing models, technologies, and services emerging regularly. To stay ahead in cost management, it pays to continuously evaluate your strategies and adapt to changing requirements. Encourage your teams to stay informed about the latest Cloud trends, sign up for training programmes, and participate in industry events to foster a culture of continuous improvement.


Ultimately, to keep on top of your Cloud costs, you’ll need to align technology, finance and operations for a streamlined, strategic approach. Not only will this help you optimise your Cloud spend, it’ll also ensure you unlock the full potential of Cloud computing and position yourself for success in an increasingly Cloud-powered world.


Please click here to access the ‘South Africa Cloud Survey Report (May 2023)’ and find out more on current local Cloud migration trends. The survey was undertaken by Nymbis Cloud Solutions in partnership with Veeam and Africa Analysis. Top of Form



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