Cloud computing promised businesses greater agility and cost savings through a pay-as-you-go model. However, as organizations migrate and mature in the cloud, many are finding that while performance has improved, costs have gone out of control. From hidden fees to underutilized resources, cloud cost management has emerged as a top concern for IT leaders.
This growing challenge presents a significant opportunity for Managed Service Providers (MSPs) to deliver valuable solutions that address the escalating costs of cloud infrastructure while maintaining its benefits.
So why is the cloud getting so expensive, and what can MSPs do to help their clients regain control?
The Growing Cloud Cost Challenge
The migration to cloud services has accelerated dramatically in recent years. While this shift brings undeniable advantages in flexibility and scalability, it has also created financial challenges that many organizations weren’t fully prepared to handle:
- Lack of Visibility: Organizations migrate to the cloud without clear usage tracking plans. Without proper tagging, policies, or analytics, it’s nearly impossible to identify who’s consuming resources and why. This leads directly to resource sprawl, redundant services, and unexpected bills.
- Over-Provisioning: The ease of spinning up new cloud instances often results in forgotten or underutilized resources. Teams frequently over-provision to prevent performance issues, resulting in payment for idle or underused capacity.
- Lack of FinOps Culture: Cloud cost management requires organizational collaboration, not just technical solutions. Many companies haven’t adopted a “FinOps” approach where finance, operations, and IT work together to proactively manage cloud spending.
- Complex Pricing Models: Cloud providers use intricate pricing structures with numerous variables. Egress fees, reserved instances, spot pricing, and tiered storage create a complex landscape that makes forecasting and optimizing spend challenging for most teams.
How MSPs Can Help Bring Order to the Chaos
This is where Managed Services Providers (MSPs), like ThoughtStorm, can play a critical role. By partnering with a knowledgeable MSP, businesses can get the support and guidance they need to take control of their cloud costs.
1. Cloud Cost Audits and Optimization
MSPs can perform detailed audits to uncover waste, right size resources, and suggest alternative services or configurations that offer better value for money.
2. Governance and Policy Implementation
A good MSP will help implement cost controls, like automation rules, budgets, and tagging strategies, to ensure future spending is transparent and accountable.
3. Tools and Reporting
MSPs often provide dashboards and reports that make monitoring costs in real time easy, identifying trends, and setting alerts when spending exceeds thresholds.
4. Expertise in Multi-Cloud Environments
Many businesses are now operating in hybrid or multi-cloud environments. MSPs bring cross-platform expertise, helping you optimize spend across AWS, Azure, Google Cloud, and private cloud environments.
5. Ongoing FinOps Support
A modern MSP doesn’t just “set and forget.” They work with your teams continuously to create a culture of cost awareness and accountability, offering FinOps best practices tailored to your business.
Building a Cloud Cost Optimization Practice
For MSPs looking to help clients with cloud cost management, the following approaches can be effective:
- Initial assessment – Provide a comprehensive cloud cost assessment that identifies immediate savings opportunities as a way to demonstrate value.
- Ongoing monitoring – Implement continuous cost monitoring tools that alert clients to unexpected spending increases and track optimization progress.
- Regular optimization reviews – Schedule regular reviews of the cloud environment to identify new optimization opportunities as usage patterns evolve.
- Educational workshops – Help client teams develop cost-consciousness through targeted training on cloud cost management principles.
The Next Steps
As businesses continue to increase their cloud adoption, the complexity of managing these environments will also grow. MSPs with specialized expertise in cloud cost optimization can deliver significant value to clients while building recurring revenue streams.
By focusing on this growing pain point, MSPs can position themselves as strategic partners rather than just technical support providers, helping clients maximize the value of their cloud investments while keeping costs under control.
Contact Noman Ahmed at [email protected] to learn more and schedule a free consultation!
