Timely visibility and monitoring of the budget is one of the pillars of Cloud Government. This tool allows companies on five continents to implement cloud technology, avoiding cost overruns in their operations.
Accessing the cloud is an irreversible dynamic for the global productive park. The new rules of the game imposed by the health crisis caused by Covid 19 generated an increase in the use of the remote work model and the future trend, according to some international thermometers, is that of an almost total immersion in this emerging technology of the Fourth Industrial Revolution.
Obstacles to Migrating to the Cloud
However, making the migration of companies to the cloud on the five continents a successful process still requires jumping several obstacles. The main one corresponds to the costs that this dynamic demands and that have been increasing year after year. According to Gartner, investment in services in this technology reached $257.5 billion in 2020 and this year is expected to rise to $304.9 billion.
Cloud Technology will represent 14% of IT spending in 2024
According to the same international consulting firm, cloud technology will represent 14 percent of IT spending in 2024, which means that companies’ investments will continue to rise in this field. However, how to ensure that, in a context in which the pandemic caused the greatest contraction of the global economy since the Second World War, companies can finance the insertion and/or expansion of this key technology for their operation and development.
What is Cloud Governance?
The answer lies in the concept called Cloud Governance. Defined as a model based on concepts similar to IT Governance, such as the implementation of technology to monitor, enforce, operate, and automate these corporate policies, this has among its many areas that correspond to financial control.
According to Leonardo Suárez, CEO of Clouxter, “Accessing cloud technology is an imperative at the present, but achieving it is not an easy task to achieve for many companies in the world from a financial perspective. Therefore, it is necessary to start with planning that includes these costs and this is possible through Cloud Governance.”
Cloud Governance, the cornerstone of costs in any organization
It suggests that in a scenario in which it is not easy to have visibility over the behavior of current costs and to project them, it is advisable to use this tool, considered the “cornerstone of costs in any organization.” The reason is that it provides updated information, a factor that results, among other aspects, in the creation of budgets that are closer to reality and the continuous supervision of said dynamics.
This tool, among many other aspects, contributes to budget management, to the extent that it includes actions such as the development and implementation of budget controls and controls to manage and guarantee continuous access. In essence, this results in savings in configuring and governing the cloud at scale.
Ricardo González, Chief Technology Officer of Clouxter, considers that the use of mechanisms such as Cloud Governance brings with it other financial benefits for the operation of any company. “Factors such as access management and security flow smoothly resulting in a smaller injection of resources. “The opposite would happen if standards in these fields are not guaranteed.”Ricardo González, CTO of Clouxter
He also adds that organizations have the challenge of balancing the needs of teams in building while remaining agile and growing while having centralized governments. This balance allows organizations to effectively enable services, configure the cloud at scale, provision resources, and operate them, maintaining agility and control.
As a consequence of cost optimization, companies can introduce and/or strengthen cloud technology and therefore reduce the risks of cost overruns and take hits to their financial operation.
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At Clouxter we establish a Cloud Governance model adjusted to the needs of organizations, allowing them to maintain greater control in terms of security, costs, and compliance of their resources deployed in the cloud.