The fundamental advantage of using cloud services to deliver IT resources needed to support daily business operations is the flexibility they allow: on-demand applications and instant infrastructure that can be ordered, provisioned, and delivered in minutes without the delays often involved in submitting equivalent requests to internal IT departments or waiting for suitable on-premise architecture to be implemented and configured.
But that convenience comes at a cost. By making it so easy for various stakeholders – from IT personnel down to line of business managers, partner systems integrators and even individual employees – to commission their own services with little or no central management, it can be equally difficult to keep track of who is spending what and where.
SPENDING IS DIFFICULT TO CONTROL
“If account control is dispersed across a company, cloud spend may be recorded in cost centers unrelated to IT,” wrote analyst David Wright in a research report by Gartner earlier this year. “It can take time to uncover all spend points and implement a cooperative governance model. Without coordination, these dispersed and often underutilized environments can easily rack up excessive monthly charges.”