32% of Cloud Spend is Wasted

Cloud computing and storage is the most convenient and efficient data management option. It is commonplace to see businesses and individuals moving critical infrastructure ‘to the cloud.’ Clouding is reshaping how enterprises conduct operations, which became more pronounced due to the global pandemic of 2020. Global cloud spend increased by 33% in 2022, showing that getting this expense under control for your business is paramount. 

Cloud computing minimizes the need for local storage and hard disks, storing digital infrastructure in a secure, encrypted location that an internet connection can only access. It has become a worldwide trend for on-site, hybrid, and remote operations.

Beyond its usability and accessibility, it is flexible and scalable for different purposes. Due to its architecture and complexity, many business executives do not pay attention to what they spend or waste on cloud computing.

According to a recent survey, the average business only utilizes 68% of its cloud expenditure. This leaves about 32% of cloud spend wasted. This means one-third of cloud spending is wasted, with an average of 13% over budget.

The surprising aspect of the report is that cloud computing is relatively easy to predict as it is based on utility-based pricing. You only get to subscribe for an allotted cloud space for your digital assets and business infrastructures.

However, executives are not spending time monitoring their cloud spending to ensure that it is commensurate with their needs.

At Expense To Profit, we explore how businesses and corporate organizations can improve their bottom line by reducing their monthly and yearly overhead costs—one of our recent articles covered Why You Need to Reevaluate Your IT Department.

So, how do you manage your business cloud computing to ensure you are spending less? We explore some strategic options below:

Migrate to the Cloud in Small Stages

Cloud computing is the new normal. So, it is commonplace to see businesses migrating their operations, data, and workflow to the cloud. The problem with digital migration is that executives integrate it immediately, not in stages.

This often overwhelms your IT and engineering team, giving them less time to strategize and seamlessly incorporate your system into the cloud. Also, it provides less time to ascertain which space is required to house the business assets. This often leads to spending more for less.

Thus, giving your tech guys enough time to migrate your systems gradually to the cloud is essential. It will give them enough time to inspect, monitor, and fix any issues within your infrastructure. It will also allow them to calculate what space is needed in the cloud before paying for it.

Define the Cloud Waste Problem

You need to define where the cloud overspending problem resides. It is usually the first step to outlining the causes and contributing factors. You need to equip your DevOps and IT team with tools that will give them more visibility and insight into your cloud usage.

This will enable them to ascertain where the cloud waste happens. It should be structured from processes, workflows, departments, groups, and personnel.

Promote a Cloud-Efficient Culture

Another way to curb enormous cloud spending is to develop a cloud-efficient culture. This should be a holistic, top-to-bottom process. You should encourage employees, for instance, to only implement the tools and resources needed to do their jobs. Ensure that your workers shut off cloud services and resources when it is not in use.

Your DevOps team also needs to take time off from their schedule to analyze and identify better ways of efficiently handling cloud computing. This will imbibe a culture of implementing trends to manage cloud storage.

Conduct Regular Assessments

Beyond identifying the source of the cloud waste problem in your digital infrastructure, you should cultivate a habit of organizing regular assessments.

First, you need to identify all the IT operations, workflows, departments, or processes that are cloud-dependent. Next, you will ascertain which functions or departments are vital to your business operations.

After which, you can determine how much cloud computing a process or department is allotted to what they need. You can discuss resizing cloud storage to reduce waste with your IT team.

Set Realistic Goals and Track Progress

Regular assessments will reveal the excesses in your cloud spending. With the data and insight, you and your IT team can set realistic goals before your next cloud subscription and track your progress along the way.

Remember that unusual operations and sudden influx in business operations that change your goals. However, your total spending should be reduced if a third of your spending is wasted.


As more businesses continue with remote or hybrid work environments analyzing cloud needs and spending has become a significant expense. You need to ensure your organization will not be hampered by insufficient resources, but like any other expense, you must ensure it is under control. Organizing a cloud computing analysis for your business may appear herculean at first. But it will be beneficial in the long run.

Expense to Profit is a cost-reduction agency designed to help small and large businesses improve their profit margins by reducing overhead expenses. Our strategies are industry-proven and tailored to your business needs.

Reach out to us today for a free consultation and expense reduction analysis.

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Marc Freedman

Marc Freedman

To help you achieve your company's financial growth goals, Marc serves as our Chief Cost Advisor, providing advice to client management teams. He is highly regarded as an expert in his field, and he frequently collaborates with and contributes to other spend consultants to develop and implement cutting-edge strategies for their respective clients.

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