4 Steps to Properly Track Your Cloud Expenses

If your cloud bill is the second-largest line item after payroll, but you still can’t explain exactly what you’re paying for, you aren’t running a lean operation. You’re paying a significant and ever-expanding growth tax.

For a business owner, cloud tracking isn’t about technical metrics like CPU usage or latency; it’s about margin preservation. It is the difference between scaling your profit and simply scaling your provider’s revenue. If you want to stop the end-of-month heart attack, you need to turn technical voodoo into a manageable business asset.

Demand a Cost-per-Value Metric

Stop asking your team what the total cloud bill is and start asking: What is our cloud cost per unit of value? Whether that unit is an active user, a transaction, or a completed order, find out what one costs.

As you scale, your cost-per-user should stay flat or decrease, so If your cloud spend is growing faster than your revenue, your architecture is broken.

Tracking this metric allows you to see if you are actually becoming more profitable as you grow, or if you are just renting your own margins back from your provider.

Eliminate Zombie Resources through Departmental Tagging

In the physical world, if you had a leak in your warehouse costing you $200 a day, you’d fix it in an hour. In the cloud, these leaks are “zombie” resources; test environments or data volumes that developers spun up and forgot to turn off. You are paying for those digital ghosts every second they exist.

To stop the bleed, you must hold your team to a business standard. Every dollar spent must have a neighborhood it lives in, so you should tag all resources by department or project.

The Cleanup Report

Demand a monthly report that identifies idle resources. If you can't tell which department is driving the bill, you can't hold anyone accountable.

Enforce the 24-Hour Spike Rule

Relying on a monthly invoice is a financial suicide mission. In a modern cloud environment, a single coding error can trigger autoscaling that scales your bill into a five-figure mistake over a weekend.

• Real-time alerts - Configure your tracking tools to alert a human immediately if spend jumps by more than 15 percent in a 24-hour window.
• Stop the black box - Think of your cloud like an office building. If you are paying for a 50-person office but only five people are showing up, you need to know today, not when the rent check is due next month.

Cloud tracking is a continuous process, not a one-time project. As your business changes, your organization’s digital needs do as well. Without constant visibility, waste will grow back like weeds in a garden.

To talk to one of our knowledgeable professionals about cloud tracking, give us a call at 020 8626 4485.