Since technology usage is often an organization’s highest expenditure after personnel costs, effectively forecasting cloud spend is vital to planning, negotiating, and achieving sustainable economies of scale as you grow and mature your business on the cloud. So, what can you can do to more accurately predict future cloud costs? In particular, how can you forecast your AWS spend for the next month, quarter, or year? By John Klacynski.
The first blog in the series focuses on the best practices you can implement to improve financial predictability:
- Increase cross-functional collaboration
- Perform driver-based forecasting
- Establish governance and accountability
Product teams are now empowered to create annual, quarterly, monthly, or even daily budgets depending on business needs. These reports give product teams the ability to spot anomalies early and take timely action to prevent cost or usage overage, or inefficient utilization or resource coverage of your Reserved Instances and Savings Plans. Thanks to tools like AWS Budgets, which lets you set custom budgets, alerts, and triggered actions related to exceeding or falling below desired thresholds, you can build a decentralized cloud spend forecast. Good read!
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