Cloud services have revolutionised the way businesses operate, offering a wide array of solutions that allow seamless access to applications, storage, and infrastructure without the need for local hardware or software.
It also provides a great way to access tools and software that could be prohibitively expensive otherwise.
While the flexibility and scalability of cloud services bring significant advantages, they also pose a challenge for businesses: ensuring you’re not paying for overlapping services that perform the same function.
To help you stay on top of your cloud services payments, let’s take a look at what cloud services are, give you examples of popular services that you may already be using, and discuss how you can monitor for and avoid paying twice for the same capabilities.
What Are Cloud Services?
Cloud services refer to a range of computing resources—such as storage, processing power, software, and infrastructure—delivered over the internet. Instead of investing in physical servers, storage devices, or software licences, businesses can subscribe to cloud-based services that provide these resources on a pay-as-you-go or subscription basis.
These services fall into three main categories:
- Infrastructure as a Service (IaaS)
Provides virtualised computing resources over the internet. Examples include Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
- Platform as a Service (PaaS)
Offers a platform allowing developers to build applications without managing the underlying infrastructure. Examples include Heroku, Red Hat OpenShift, and Salesforce Platform.
- Software as a Service (SaaS)
Delivers software applications via the cloud, meaning there’s no need to install anything on local machines. Popular examples include Microsoft 365, Google Workspace, and Dropbox.
These cloud services offer scalability, flexibility, and reduced upfront costs, making them attractive to businesses of all sizes.
However, their rapid development and expansion can also lead to inefficiencies, particularly if businesses aren’t vigilant about managing what they’re paying for.
The Risk of Overlapping Cloud Services
Cloud services change frequently, with new features and offerings being added regularly. A service you purchase today might expand in six months to include functionality that overlaps with another service you already pay for.
This overlap can be subtle, and it’s easy to miss, leading to situations where businesses can unknowingly pay for two services that do much the same thing.
For example, many companies subscribe to both Dropbox for file storage and Google Workspace for document management and collaboration.
However, Google Workspace already includes Google Drive, which provides similar storage capabilities. If not carefully monitored, the business might be paying twice for file storage.
Another common scenario involves businesses paying for separate virtual meeting tools, such as Zoom and Microsoft Teams, even though Microsoft Teams already includes video conferencing as part of its broader collaboration platform.
How to Monitor Overlaps in Cloud Services
Keeping track of cloud service subscriptions is essential to ensure your business is not wasting money on redundant tools. Here are a few steps you can take:
- Conduct Regular Audits
Perform regular audits of your cloud subscriptions. List all the services your business is using and the functionalities they provide. This will help you identify overlaps in services. Make sure to include all departments in your audit, as teams may have subscribed to services that overlap with company-wide solutions.
- Use Centralised Cloud Management Tools
Many cloud providers offer management dashboards that allow businesses to track their subscriptions. For example, AWS has the AWS Cost Explorer, which gives detailed insights into your cloud usage, and Microsoft Azure provides a Cost Management tool for the same purpose.
Third-party cloud management platforms, like CloudCheckr or CloudHealth, can also help you keep tabs on your cloud expenses and identify areas of redundancy.
- Monitor New Features and Updates
Cloud service providers frequently update their offerings, adding new features that might make other services unnecessary. Make it a point to monitor these updates closely to ensure you’re not paying for additional services that your main provider has already integrated into its solution.
- Maintain a Cloud Service Renewal Calendar
Cloud services are often billed annually or monthly, and renewals can easily slip through the cracks. Maintaining a calendar of renewals helps you reassess your cloud subscriptions before they’re renewed automatically. This ensures you can cancel redundant services or renegotiate contracts for better pricing.
How to Prevent Overlapping Services
Once you’ve identified where overlaps exist, the next step is to eliminate them. Here are a few tips on how to do that effectively:
Consolidate Vendors Where Possible
If a single cloud provider offers a range of services that meet your needs, it may be more efficient to consolidate your tools under one provider. For example, if you’re using both Google Workspace and Zoom, but your needs for meetings can be handled by Google Meet (included in Workspace), you can cancel Zoom and save on costs.
Negotiate with Vendors
Cloud service providers want to retain your business, and if you’re a loyal customer, they may offer you better deals or bundle additional services at a discount. Regularly contact your vendors to negotiate and explore how to optimise your subscription.
Train Staff on Available Tools
Sometimes, overlaps occur because employees are unaware of the full range of tools available within a service they already use. By providing training and ensuring teams know how to use the full functionality of existing cloud tools, you can prevent unnecessary subscriptions to additional services.
Cloud services offer numerous advantages for businesses, but without careful management, they can also result in unnecessary expenses due to overlapping functionality.
To ensure your business isn’t paying twice for the same service, conduct regular audits, use centralised cloud management tools, and monitor new updates and features from your vendors.
You can also consult with IT experts who will be able to assess not only what services you already have in place, but also identify any overlaps, guide you on how to lean down services – and costs – and ultimately make your business cloud-services efficient.
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