Cloud

Cloud Cost Management Tools: The Good, The Bad, and The Alternative

Posted on by Tim Timrawi
Cloud Cost Management Tools
06
Aug

 

Managing cloud costs has become a critical task for businesses of all sizes. With the increasing complexity and scale of cloud environments, the need for efficient cloud cost management tools is more pressing than ever. The reality is that while such tools can lower cloud spend costs by identifying usage inefficiencies, they come with their own challenges and costs.

However, the benefits of paying for cloud cost management tools can be worth the additional complexity and service charges. 64% of enterprise-size companies find their cloud financial management to be effective and that it’s boosted their revenue. It’s still unclear if smaller sized businesses, that don’t spend millions each year on cloud costs, can glean the same benefits.

“Deciding if cloud management tools are worth the investment requires careful consideration. It’s essential to research and understand both the benefits and the potential drawbacks before signing up for these services.”

– Tim Timrawi, CEO, Sharktech

In this blog, we will explore the essentials of cloud cost management tools, their pros and cons, and why they might not always be the best solution.

What you’ll find in this article:

  • What are cloud cost management tools?
  • Who uses cloud optimization tools?
  • Examples of the best cloud cost management tools to consider
  • The pros and cons of cloud cost management tools
  • Is there a better way to control cloud costs?

What Are Cloud Cost Management Tools?

Cloud cost management tools are designed to help businesses monitor, manage, and optimize their cloud spend management. Considering that 70% of companies aren’t fully clear on how much they spend on cloud costs, having tools that help overcome this blindspot is of great value.

With cloud cost management tools, companies can see how they use the cloud. They can be used to identify:

  • Usage patterns and trends
  • Resources being underutilized, idle, or overutilized
  • Unexpected shifts in cloud spend
  • Business areas that use the cloud the most (or the least)
  • How billing is determined
  • Other helpful usage metrics

Data gathered from these tools can be used to plan business strategies and forecast budgets, identify cloud wastage and specify areas to cut back on, and build a clearer picture of their cloud costs.

Who Uses Cloud Cost Optimization Tools?

Cloud cost optimization tools are utilized by a variety of organizations, from startups to large enterprises. Modern hyperscalers’ billing and client usage reports tend to be convoluted, unpredictable, and hard to tabulate. Without the visibility and information needed to accurately interpret and understand cloud costs, it can be difficult to gain control of a cloud spending budget.

In fact, a recent study determined that 54% of companies believe their primary source of cloud waste is a lack of visibility into cloud usage. Cloud cost tools provide companies with the information they need to gain detailed insights into their cloud spending, identify inefficiencies, and make informed decisions to optimize resource usage and control overall costs.

However, using these tools isn’t as simple as you might think. 62% of companies need multiple tools to get a global view of their cloud costs. With the current cloud landscape, it’s not surprising that the cloud cost software market has a CAGR rate of over 23% and is on track to be worth more than $13 billion by 2030.

Examples of the Best Cloud Cost Management Tools

As cloud environments grow in cost and complexity, various tools are available to help businesses monitor, manage, and optimize their cloud spending.

Below are five of the best cloud cost management tools available in today’s market:

1. CloudHealth by VMware Tanzu

  • Provides comprehensive tools for managing, analyzing, and optimizing cloud infrastructure and spending.
  • Supports multi-cloud environments and offers features like showback and chargeback to enhance cost accountability.
  • Includes cost visibility across various clouds and rightsizing recommendations​​.

2. Apptio Cloudability

  • A financial management tool that helps monitor, report, and analyze cloud costs.
  • Offers budgeting, forecasting, and rightsizing capabilities.
  • Integrates with cloud monitoring tools like PageDuty and DataDog for more in-depth insights​​.

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3. CloudCheckr

  • Provides end-to-end cloud management, focusing on cost optimization, resource allocation, and security.
  • Generates recommendations for rightsizing and snapshot cleanups.
  • Offers automation features for resizing and modifying reserved instances.

4. Flexera Cloud Cost Management

  • Helps improve visibility, allocation, and efficiency of cloud spending at scale.
  • Offers actionable recommendations, budget controls, and cost policies.
  • Supports multi-cloud environments, providing robust cost analysis and forecasting tools​​.

5. Densify

  • Leverages machine learning to optimize cloud resources, providing cost-saving opportunities and methods for reducing cloud computing charges.
  • Supports single-cloud, hybrid-cloud, and multi-cloud environments.
  • Provides insightful guidance, risk assessment, and extensive reporting tools​​.

Pros and Cons of Cloud Cost Management Tools

Cloud cost management tools offer a range of benefits and challenges for businesses looking to gain better control over their cloud usage. While they provide valuable insights and help streamline resource allocation, they also come with their own set of complexities and potential drawbacks.

Pros and Cons of Cloud Cost Software
Pro: Improved Visibility and Transparency
Provides detailed insights into cloud usage and spending, allowing businesses to see exactly where their money is going and identify any inefficiencies or wasteful spending		 Con: Additional Costs
Implementing cloud cost management tools can be expensive, adding another layer of costs on top of existing cloud expenditures
Pro: Cost Optimization
Helps identify opportunities for cost savings by recommending actions such as rightsizing instances, terminating idle resources, and optimizing reserved instances.		 Cons: Complexity and Learning Curve
These tools can be complex to set up and use, requiring time and expertise to fully understand and integrate into existing systems.
Pros: Better Budget Management
Features like budgeting, forecasting, and cost allocation enable organizations to better manage their cloud budgets and avoid unexpected expenses.		 Cons: Potential for Limited Integration
Not all tools integrate seamlessly with every cloud service provider or existing IT infrastructure, which can limit their effectiveness and create additional challenges.
Pros: Automation of Cost-Saving Actions
Many tools offer automation capabilities, such as automatically shutting down non-production resources during off-hours or resizing instances based on utilization patterns.		 Cons: Over-Reliance on Tools
There is a risk of becoming too reliant on automated recommendations and actions, which can lead to suboptimal decisions if the tool’s algorithms are not perfectly aligned with the organization’s specific needs and usage patterns.
Pros: Enhanced Accountability
Tools with showback and chargeback features increase accountability by attributing costs to specific departments or projects, helping organizations understand who is driving up costs and why.		 Cons: Data Privacy and Security Concerns
Using third-party tools to manage cloud costs can raise concerns about data privacy and security, especially if sensitive financial and usage data is involved.

Is There A Better Way to Control Cloud Costs?

Finding a balance between cost and performance in cloud services is challenging. While hyperscalers offer robust solutions, they also come with high costs, complexities, and poor visibility. It seems that until leading cloud providers change how they deliver their products and services, businesses will need to make compromises or invest in cloud management tools.

However, that’s not the only thing businesses should consider. There are alternative providers that offer cloud services with a focus on affordability, transparency, and ease of use. These alternatives often provide more straightforward pricing models, reducing the complexities and hidden costs typically associated with large cloud providers.

Additionally, they emphasize customer support and flexibility, enabling businesses to have control over their cloud environments without the need for extensive management tools. This approach not only helps in managing costs more effectively but also ensures that businesses can scale and adapt their cloud usage as needed without unnecessary constraints.

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The Better Alternative: Sharktech Cloud

To truly take control of cloud costs and regain sovereignty over your cloud infrastructure, look no further than Sharktech. We’re a reliable alternative to today’s hyped-up hyperscalers. We have decades of experience in business internet services, and we’re trusted by over 1,000 clients across 72 countries.

Shifting to Sharktech helps companies reduce their cloud costs by at least 50%. Moreover, we eliminate the frustrations of poor visibility; we’re fully transparent about your usage and billing invoices. This means your need for cloud cost management tools can also be eliminated.

Instead of spending more on management tools to lower your cloud spending costs, consider spending less on cloud services. You’ll get more control over your costs and your cloud.

Contact us today to learn more.