Estimated reading time: 3 minutes, 3 seconds

The coronavirus pandemic has altered the strategies of many companies, including their spending. This change has tipped the scale in favor of remote technologies, that are now being adopted massively as work turns from office to working from home. With the revenues of many businesses now suffering from the virus, many organizations are trying their best to limit costs as much as possible. This has seen most of them opting for remote work solutions, changing shifts, and putting some staff on unpaid leave to reduce the cost of business. With all these, the cloud appears to be seeing an increase in expenditure as the acquisition of cloud-based solutions increases. Cost is always a major driver for many migrations, but most companies poorly understand it in the beginning.

For startups, it is okay for them to see the value of cloud when they have used non in the past, but when they are still using old systems and legacy software, finding out the potential cost of moving to the cloud is not that easy. However, with the speed of modern business and the rapid response to the coronavirus pandemic, that is aimed at enabling millions of employees to work remotely, it is now clear that living in the world without cloud technology will not be easy in the modern era.

No time in history has exposed many industries than what we are experiencing today. The pandemic has shown the need for IT resources, that are always available led by the cloud. Even with the virus affecting most operations, the cloud has continued to show the reason why people are finding it useful for businesses. As the damage of coronavirus continues affecting office-based operations in different companies, cloud computing is turning out to be the refuge that these businesses look for at such a time of need. Companies are now relying heavily on technology to keep going. According to a report by Flexera, more than 20 percent of companies spend more than $1 million every month on the cloud. This is expected to double in the next 12 months, where projections found that companies will spend up to 47% on average to grow cloud. The report by Flexera based on a survey of 750 decision-makers and users also point out that companies are 23% over the budget. The respondents, however, noted that they are wasting 30% of their cloud expenditure.

Even with the pressure from the coronavirus, companies must devise a way of managing their cloud expenditure. There is a need for a balance between responding to the effects of the pandemic and keeping the expenditure reasonable. Although spending on all other IT categories will go down this year due to the suspension of operations, cloud technologies will still make the most. Companies will need a way of supporting their on-premise resources and improve the working experience of remote employees. The problem, however, is what is needed, and for how long since the time that the pandemic is expected to be over is not known. However, companies must use data from mid-March up to now and project what is required and what is not. Also, this information can help the forecast of what goes up and what will go down.

With the costs going up, companies must employ new tactics to stay on top of the expenses, most of that are unpredictable. Despite the cost management being challenging, as shown by Flexera because of the complexity and difficulty in usage forecasting, businesses should consider monitoring their spending usage and spending daily. They should also ensure that unused workloads are taken down to reduce the cost of operations in such a time when spending needs to be limited as much as possible.

Read 226 times
Rate this item
(0 votes)
Tagged under
Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

Find his portfolio here and his personal bio here

Website: scottkoegler.me/

Visit other PMG Sites:

click me
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.
Ok Decline