Posted on March 3, 2023
Estimated reading time 4 minutes
Ahead of a looming recession, tech firms have begun a wave of redundancies to cut costs, and there’s a worry that it’s only the beginning. With inflation reaching multi-decade highs in the UK and overseas, tough choices lie ahead for every sector of the economy.
Although it’s far from a silver bullet, cloud cost control measures can effectively reduce overheads and free up capital for other areas in your business. This article outlines how using cloud cost management tools for the modern workplace helps you do more with less on Azure this year. Read on to find out more.
Why 2023 is the year to consider cloud cost management
Businesses are battling a raft of global challenges driving up expenditure. Just some of the pressing issues include:
The U.S. Labor Department reported that year-on-year consumer price inflation hit a 40-year high of 9.1% in June 2022. Elsewhere, the story is the same, with most global economies struggling with inflation rates in excess of 5%.
While central banks have taken action, it’s still unclear whether we’re past the peak. In the UK, the Bank of England expects the problem to linger until at least mid-2023.
2. Energy market volatility
While energy costs are hitting everyone alike, businesses have been left out of many national support packages meaning they’re bearing the brunt of volatility in global energy markets. What’s more, remote working practices – if even possible within some business models – are only so effective at reducing the enduring cost of wholesale gas prices.
4. The battle for talent
Finally, rising expectations around working conditions and a global talent shortage have created a highly competitive labour market. While the shift is good news for employees, it’s forced some businesses to adjust their operations. Oddly, it seems that the labour market will remain strong into 2023 despite the economic downturn, meaning firms need to find ways to attract and retain talent as their revenue dwindles.
What do you stand to save with an Azure cloud cost management initiative?
Microsoft’s cost management tools offer a reliable and effective way to reduce cloud expenditure across your organisation. Currently, 18-40% of on-premises servers sit idle, meaning that (even for businesses already in the cloud) ongoing optimisation is vital to reduce expenditure creep.
By tailoring your cloud environment to your needs, you can simplify your workload and consolidate licences in core solutions like Microsoft 365, Defender, and more. You can even minimise your network attack surface area by establishing a pure-play cloud environment that offers more visibility over your data.
Data from Forrester shows that Azure’s cost management tools can help you save up to 34% on your average annual cloud spend and reduce staff management efforts by around 15%. What’s more, a fully optimised Azure cloud environment can reduce third-party spending by a further 15%, improve IT productivity by 30% and lower your risk of data breaches by 80%.
Therefore, Microsoft’s cost management tools allow a range of potential savings and new availability of capital across your organisation for you to invest according to your business’s needs. Excitingly, savings from various Azure optimisation measures can reach $2.5 million in otherwise wasted capital across a three-year period.
However, the potential savings from cloud cost management are even higher for specific Azure solutions. For example, you can save up to 65% over standard PAYG pricing when you migrate Windows & SQL server licences with Azure Hybrid Benefit. Additionally, you can drive further savings via cloud automation tools. For instance, when tailored to your business’s needs, Azure’s AI-enabled cybersecurity tools can help you generate a +200% ROI while also minimising the risk of data breaches.
Combined, regular cloud cost management can help your business become more resilient and agile and ensure your business can respond to shifting market demands faster. Azure optimisations also have the added benefit of reducing your carbon footprint since Azure is a highly efficient and sustainable cloud platform. This means that your business doesn’t have to sacrifice its net-zero ideals while navigating the forthcoming recession.
How to optimise your cloud expenditure
When weighing different external partners to support your cloud optimisation, choose a reputable partner with a validated track record of success. For example, Microsoft offers various certifications to evidence which solution providers are more experienced than others in the market.
These certifications ensure that providers work within Microsoft’s own best practices (like the Well-Architected Framework) and offer a range of benefits, like early access to cutting-edge technologies and training. As a result, your business can access leading IT support and the latest cloud-native tools while saving money at the same time when working with highly decorated solution providers.
Do more with less on Azure with expert cloud support Atech
Atech is a leading provider of cloud migration and optimisation services. To date, we’ve migrated or refactored over 10,000 servers in Azure, giving us unique insight into cloud cost management challenges across different industries.
In addition to our Solutions Partner designation from Microsoft in Azure Infrastructure, we have a dedicated specialism in Infra and Database migration, along with nearly every other qualification that Microsoft offers. As a result, we’re at the forefront of optimising cloud environments for our customer’s needs using the latest tools and best practices.
Whether you need a lean cloud environment to enable your business goals, a robust cybersecurity strategy, or a combination of both to truly empower your business, we can help.
To learn more about our services and solutions, get in touch today.