Gartner Research

Cost Optimization Secrets: Plan and Manage Cloud Services for 14% Savings, on Average

Published: 15 March 2016

ID: G00299793

Analyst(s): Stewart Buchanan

Summary

Examine how other organizations are sourcing cloud services to optimize costs — it's not as easy as it sounds. Even after a successful implementation, sourcing and vendor management leaders must address a new set of challenges to contain overspending on cloud services and sustain cost savings.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Quantify Real Savings by Planning How Cloud Will Save Money
    • 31% Savings in Capital and Cash
    • 26% Savings From Replacing Perpetual Licenses With Possibly Perpetual Cloud Subscription Costs
    • 15% Savings From Staff Reduction
    • 31% Savings From Elasticity — Being Able to Turn Services On or Off
  • Cut Business Operating Costs With the Cloud
  • Plan to Manage Cloud Service Costs
    • Plan Switching Costs
    • Manage Vendor Contracts
    • Manage Demand to Contain Costs

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Log In

Purchase this Document

To purchase this document, you will need to register or sign in above

Register Now

Become a client

Learn how to access this content as a Gartner client.