It turns out Cloud Expense Management (CEM) isn’t as easy as you thought – or, at least, it wasn’t this month for some Amazon Web Services (AWS) customers.
Organizations everywhere are experiencing AWS billing errors for the cloud services they consume. In some cases, businesses report charges two or three times higher than their normal rates! While we don’t know exactly how many have been affected by these mistakes yet – or what caused the issue in the first place – one thing is certain: it’s never been more important to have cloud expense management expertise under your belt.
The Value of a CEM Vendor
For many companies, September’s AWS billing errors would have never been uncovered without the help of a CEM vendor. Now more than ever, you need a third-party cloud expert to monitor these technologies and the charges they create if you’re not already using one.
Beyond unexpected scenarios like this one, the value these partners deliver will only continue to grow. Hyoun Park, CEO and chief analyst of Amalgam Insights, believes cloud spend could triple in as little as five years – meaning organizations managing these costs alone will soon be overwhelmed by the data and complexity this technology promises to create.
Furthermore, most executives and business leaders don’t understand the intricacies involved in today’s CEM. These AWS billing errors are simply the most recent example of issues that are overlooked more often than you might think.
While the industry’s billing processes have traditionally been straightforward, the explosion of cloud products and services – as well as the myriad of pricing and discount options they bring – will overwhelm daily workflows and add more and more complexity going forward.
Considering the bulk of cloud billing error detection efforts are left to individuals, it’s only a matter of time until mistakes are made for most enterprises. A CEM vendor provides tremendous help in avoiding these issues, however, through dedicated teams of expense management auditors and experts. After all, without their help you’re essentially trusting Amazon to manage its own invoices and bills for you…
In addition to eliminating this conflict of interest and the potential for a single point of failure, outside expertise delivers tangible business value by moving the burden of cloud services billing off the shoulders of your strategic internal resources. Instead, cloud management and optimization professionals handle error avoidance, identification, and reconciliation tasks so your technology management teams can get back to doing the work that truly matters.
Don’t Be Another AWS Billing Errors Example
Outsourced CEM provider tools establish a proactive management approach through automated alerts, error detection services, and cost validation solutions to ensure AWS billing errors don’t derail your bottom line. Plus, you’re not that partner’s only customer – they know what a good rate and adequate services consumption looks like for your industry, organization size, use case, etc. to optimize spend and save money upfront, too.
This incident highlights the value of a CEM vendor’s expertise. Without their help, it can be impossible for you to manage cloud billing processes, establish usage thresholds, and ensure mistakes are caught and corrected as early as possible.
Are you sure your cloud services initiative has what it takes to avoid tomorrow’s headlines? If not, we’ve got the perfect tool to help – check out AOTMP® University’s Managing Vendor Performance & Accountability Course today!