As more higher education institutions adopt cloud computing, managing cloud costs has become a top priority. While cloud technology offers significant benefits for delivering IT services—ranging from administration to online learning—its adoption brings new challenges in cost control. According to Flexera, 58% of organizations feel their cloud costs are too high, and 82% are uncertain about their ability to manage spending.
To help CIOs and IT leaders effectively manage cloud expenses, here are key strategies:
1. Anticipate Cost Increases Before Moving to the Cloud
The first step in managing cloud costs is understanding that costs will rise initially. Institutions must budget for added expenses like increasing network bandwidth, security services such as secure access service edge (SASE), and more. By presenting these transitional costs to decision-makers early on, institutions can set a realistic cloud budget baseline for future cost optimization.
2. Audit User Subscriptions and Redundant Services
Often, cloud-based services—especially Software as a Service (SaaS)—are independently adopted by faculty and staff without IT’s knowledge. This can lead to unnecessary service duplications and unused resources. Regularly auditing and tracking cloud services can help eliminate redundancies and underused subscriptions, saving money.
3. Identify Dormant Cloud Resources
Unused cloud resources, such as provisioned but idle servers or storage, can incur ongoing costs. IT departments should audit for these dormant assets and ensure proper deprovisioning to avoid unnecessary charges.
4. Optimize Cloud Usage
One of the advantages of cloud computing is the ability to pay for only what you use. By eliminating in-house infrastructure and redundant services, institutions can cut costs. Institutions can also leverage long-term vendor relationships or license agreements for further savings.
5. Invest in Cloud Training for IT Staff
Training IT staff on the resource management tools provided by cloud vendors is critical for efficient cost management. Well-trained teams can fine-tune applications for performance and cost-effectiveness without having to hire new staff, thereby retaining institutional knowledge while expanding cloud expertise.
6. Use Cloud Cost Analysis Tools
Cloud bills are often as complex as telecommunications bills. To regain control over these costs, institutions should use cost analysis tools offered by cloud providers. These tools can help IT leaders and finance teams identify surplus costs and eliminate unnecessary expenditures.
7. Collaborate with Stakeholders
Successful cloud cost management requires collaboration between IT, finance departments, and cloud vendors. Stakeholder collaboration helps ensure that cloud expenditures align with the institution’s business goals and that cost control remains a central focus.
By understanding and addressing cloud cost complexities, higher education institutions can optimize their cloud usage, reduce surplus spending, and ensure their investments support the broader mission of delivering high-quality education.
