10 Ways Enterprises Can Take Control of the Cloud Chaos

by Darryl K. Taft

It may seem simple, but the first step an organization should take in managing its cloud environment is to understand which apps its employees are actually using. A recent eye-opening survey indicated that the average enterprise uses more than 450 cloud apps, and this figure proved to be 9-10 times greater than the average corporate IT team estimated.

While many organizations initially turn to the cloud for the cost savings it can enable, they often end up wasting huge amounts of money on unused cloud app licenses and outdated contracts with cloud providers.

Licenses and fees for cloud apps are not always straightforward, and enterprises can end up spending more than they bargained for on hidden charges. It is necessary to take the time to fully understand each cloud contract to avoid fees.

The siloed nature of many organizations today plays a significant role in unnecessary cloud spending. For example, the sales and marketing departments could both inadvertently have contracts with the same provider, such as Salesforce. The organization should cancel any instances of multiple contracts with the same cloud vendors.

As the organization delves into its cloud usage, it should identify and eliminate unused and unknown cloud licenses. For example, many organizations may not realize they are still paying for cloud licenses for employees who have left the organization.

The organization should negotiate current cloud contracts to make sure it’s getting the best deal, and make sure to renegotiate these contracts in the future. In doing so, it’s important to ensure that rates are in accordance with purchase volumes.

“Shadow IT” is a major issue facing enterprises today and can lead to many issues, including security concerns. To maintain security and prevent potential liabilities, the organization should include the IT department in any cloud purchasing decisions. By engaging IT, organizations can better ensure that enterprise-ready cloud offers/solutions are provided.

Once the organization understands which apps employees are using and where money is being spent, it should create a central portal from which this can all be managed. Central management of cloud assets and expenses will significantly reduce the complexity of managing cloud contracts and help to eliminate duplicate contracts.

Rather than making one-off investments in various cloud apps, the organization should make sure its cloud investments map to overall business strategy. This will help improve the ROI on cloud spending.

If the process of managing cloud apps today, and on an ongoing basis, seems like a lot of work, the organization should consider turning to a third-party provider that can provide an objective assessment of cloud usage. This oversight can help the organization realize the best possible value from its cloud investment.