Cloud adoption promises scalability and innovation, but managing cloud costs is anything but simple. While cost management tools continue to evolve, they often leave visibility gaps that result in unexpected expenses, inefficiencies, and wasted resources. For organizations trying to keep up with the rapid pace of change, staying ahead of cloud costs can feel like chasing a moving target.
THE IMMATURITY OF CLOUD COST MANAGEMENT TOOLS
Cloud providers offer native tools to monitor usage and spending, but these tools are still maturing. A notable example is Tyler Technologies, which hired three full-time employees solely to manage cloud costs and invested in a third-party tool to monitor cost spikes. Shortly afterward, AWS released similar cost-control features natively. Unfortunately, by that time, Tyler Technologies had already invested significant time and money in building a temporary solution that quickly became obsolete.
This example highlights a key challenge: the rapid evolution of cloud cost management tools can leave organizations scrambling to keep up, forcing them to either overinvest in third-party tools or develop internal solutions that may not scale effectively. And despite advancements in cloud cost management solutions, companies still struggle to control (or even understand) where their money is going.
A 2024 report from CloudZero found that 42% of companies have only an estimate on unit cost and 19% have no idea at all. For 66% of engineers, the lack of visibility into cloud costs is disrupting their workflows and 56% of finance professionals say the same thing. Overall performance is also likely taking a hit, as 89% of respondents report the low visibility impacts their ability to do their jobs well.
THE HIDDEN COSTS OF POOR VISIBILITY
Without the right tools and processes, businesses face several hidden cost challenges:
- Shadow IT: Departments may provision resources outside of centralized oversight, resulting in siloed billing and consumption. These untracked expenses can snowball, creating budget overruns.
- Siloed Billing: Cloud expenses are often split across different departments, making it difficult to get a holistic view of organizational spending.
- Underutilized Resources: Unused or overprovisioned resources—like idle virtual machines—can quietly drain budgets without detection.
- Cost Spikes: Misconfigured services or unexpected workloads can trigger sudden cost spikes that go unnoticed until the bill arrives.
Addressing these visibility gaps requires more than tools; it demands a strategic approach to cloud cost management.
THE ROLE OF INTERNAL TALENT IN CLOUD COST MANAGEMENT
Effective cloud cost management isn’t just about having tools—it’s about having people who know how to use them. Cloud dashboards, alerts, and analytics must be properly configured, monitored, and acted upon. This often requires internal talent with specialized skills, and for those organizations still building their cloud expertise, these disciplines may not exist in-house.
Cost optimization analysts are professionals who focus on identifying cost inefficiencies and recommending optimizations. Their skills extend far beyond traditional IT cost analysis and budget forecasting.
Cloud architects include experts who design environments with cost control in mind, ensuring scalability without overprovisioning. Candidates with the right background are often difficult to attract and retain due to heavy competition across nearly every business sector.
FinOps practitioners are individuals with expertise in bridging IT and finance to manage cloud budgets and align spending with business goals. A NetApp survey found that 96% of enterprise teams believe FinOps is important to the success of their organization’s cloud strategy but only 9% say they have a mature FinOps practice.
Unfortunately, building this talent takes time, and the reliance on external consultants or third-party tools can lead to long-term dependencies and additional costs.
THE ROLE OF INTERNAL TALENT IN CLOUD COST MANAGEMENT
To address visibility gaps and ensure efficient cost control, organizations should adopt the following best practices:
- Centralize Cloud Governance: Establish a single source of truth for cloud billing and resource provisioning to prevent shadow IT and siloed spending.
- Invest in FinOps: Implement a FinOps framework to align cloud spending with business priorities and create accountability across teams.
- Regular Audits and Optimization: Conduct regular reviews of cloud environments to identify underutilized resources, misconfigurations, and cost spikes.
- Leverage Hybrid Strategies: Consider hybrid cloud solutions that combine the flexibility of the cloud with the predictability of on-premises costs.
- Stay Current with Tools: Continuously evaluate new cost management features from cloud providers to avoid overinvesting in third-party solutions.
PROTECT WHAT POWERS YOUR BUSINESS
At CyberNorth, we understand that cloud cost management is about more than avoiding surprises—it’s about protecting what powers your business. By combining expert guidance with proven strategies, we help organizations gain visibility, optimize costs, and align their cloud investments with business objectives.
Don’t let hidden costs undermine your cloud strategy. Contact CyberNorth today to ensure your cloud environment is efficient, transparent, and ready for the future.
