As cloud computing opens up new possibilities for higher education, many institutions are adopting hybrid cloud models, blending internal and cloud-based systems to manage IT services. These systems handle everything from recordkeeping and administrative tasks to the delivery of online content for both in-person and remote learning. However, as more IT infrastructure moves to the cloud, managing cloud costs becomes a top priority for educational institutions.
According to Flexera, 89% of organizations are now using multiple cloud services, with 73% leveraging hybrid cloud models. Despite these advancements, 58% of organizations feel their cloud costs are too high, and 82% struggle with properly managing these expenses.
Steps for Cloud Cost Reduction
- Anticipate Cost Increases: The first step in reducing cloud costs is to anticipate potential cost increases when moving to the cloud. Organizations often find that network and internet bandwidth needs to be expanded, and additional security services like Secure Access Service Edge (SASE) must be procured. By presenting these costs upfront, IT leaders can set realistic budgets and track potential savings more accurately.
- Audit Cloud Usage: Many institutions face a proliferation of cloud services as faculty, staff, and students adopt new tools independently. This often leads to redundant or underused resources. Regular audits can help eliminate duplication and deprovision unused services, ensuring institutions only pay for what they actively use.
- Optimize Cloud Storage and Processing: Institutions often forget to deprovision cloud storage or processing resources after they’re no longer in use, leading to unnecessary expenses. IT teams should monitor and track these resources to eliminate idle costs.
- Purge Unnecessary Data: Outdated or obsolete data stored in the cloud adds to expenses. Regular data audits can help identify excess data that should be purged to optimize storage costs.
Opportunities for Cloud Cost Optimization
Cloud computing provides the advantage of paying only for what you use, making it easier to eliminate dormant assets like in-house storage and processing. Paige Johnson, vice president of education marketing at Microsoft, emphasizes the importance of eliminating redundant infrastructure and leveraging existing license agreements to achieve savings.
IT leaders can also optimize costs by:
- Training IT Staff: Ensuring that IT personnel are proficient with the resource management tools offered by cloud providers helps optimize cloud environments without requiring additional hires.
- Using Cloud Monitoring Tools: Cloud providers offer monitoring tools to help manage security, uptime, and performance. These tools enable IT teams to fine-tune applications for optimal performance at the lowest cost.
Regaining Control Over Cloud Costs
Cloud bills can often be as complex as telecommunications bills, making it difficult to track expenses accurately. IT and finance teams should work together to understand cloud billing and use cost analysis tools provided by cloud vendors. By maintaining a clear picture of cloud expenses, institutions can better align cloud services with their overall goals, eliminate surplus costs, and improve financial management.
As higher education institutions increasingly rely on the cloud, CIOs and CFOs must focus on cost control and optimization. By understanding cloud costs upfront, auditing usage, and taking advantage of available tools, institutions can manage their cloud investments efficiently and ensure long-term success.
