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

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