5 CFO Tips for Managing Cloud Spend

CFO Tips for Managing Cloud Spend

Understanding cloud spend can be complex: it’s hard to track, difficult to allocate, and can grow seemingly unchecked. CFOs need visibility into cloud costs, as well as the ability to forecast accurately, drive accountability and establish governance guidelines. Here are five tips to help CFOs regain control of cloud spend.

1. Allocate budget by department.No two departments spend the same amount in the cloud, so talk to each one to determine who is spending what. Use this information to divide up your total cloud budget and allocate accordingly.

2. Understand your spend.It is important to recognize who is spending what, on both a functional and an individual level. Some workers are “cloud-happy” –spinning up instances and forgetting to shut them down. Use reports that show consolidated cost data, so you can see if it’s in line with projections.

3. Drive accountability.Once you understand departmental and individual spend, engage with key stakeholders to drive and maintain accountability. Don’t take a one-and-done approach – check in regularly. The faster you grow, the more frequent these check-ins should be. Establish governance policies to continuously ensure that no one is drifting from the plan.

4. Automate the process.Most cloud service users manually create the reports outlined in #2 by exporting data into spreadsheets, which can take hours to scrub. A cloud management platform with automated cost reports will save valuable time.

5. Have a basic understanding of your cloud infrastructure.Every cloud provider has flexible pricing structures. Having a working knowledge of your infrastructure will help you project future spend and secure substantial discounts by taking advantage of your cloud provider’s cost saving tools.

For more advice on managing cloud spend, read our blog on the three cloud cost reports every CFO

should be looking at:

https://www.cloudhealthtech.com/content/three-cloud-cost-reports-

every-cfo-should-be-looking