Cloud Total Cost of Ownership

Bring financial accountability to the total cost of running cloud and AI

The Whole Cloud Cost Story

Cloud costs don’t end with your monthly AWS, Azure, and GCP bills. Monthly invoices only represent a part of the cloud cost story.

To measure cloud program TCO, cloud leaders need to bring direct, indirect, and shared cloud costs together, then allocate them back to the business by team, product, or application. This establishes financial accountability and a fully-burdened unit cost measurement, one that shows whether rising cloud costs reflect accelerating innovation and profitability or inefficiencies that need to be addressed.

Typical customer outcomes with IBM Cloudability

30%

reduction in cloud unit costs

100%

allocation of multi-cloud program costs

90%

commitment coverage

Stock image of a group meeting

Common Cloud Total Cost of Ownership Challenges:

  • Understanding what contributes to the total cost of cloud-based applications and services
  • Determining fully loaded unit costs for an app or product
  • Allocating direct and shared cloud costs back to teams
  • Calculating which cloud apps and AI initiatives are returning the most value

Cloud Total Cost of Ownership Solutions Help You

Bring direct and indirect costs together to determine the total cost of your cloud program.

Assign cloud program spend to teams in a way that makes sense for your business.

Establish accountability across teams and improve planning with greater visibility into cloud program costs.

IBM Cloudability TotalCost: Capture & Allocate Total Cloud Program Spend

Cloud costs don’t end at your monthly AWS, Azure, and GCP bills. Get visibility into everything that contributes to your total cloud program spend, including:

  • Observability solutions that help ensure operational and security integrity across a fleet of VMs
  • Specialized cloud technologies, including CDNs and serverless data warehouses
  • Labor and additional vendors like IBM and Oracle

Typical Customer Outcomes

100%

Allocation of cloud program costs

30%

Reduction in unit costs

Develop unit economics to measure profitability

Mapping AWS, Azure, and GCP Services to a Standard Taxonomy

With significant investment in public cloud solutions, you need a better way to compare cloud costs and improve your ROI. However, cloud costs are complex and variable; it is challenging to classify costs and produce actionable technology cost analytics. Enter FinOps!

Download the Cloud ATUM poster to learn FinOps best practices.

  • 92% allocation of cloud costs within 3 months of implementation
  • Improved cost transparency and financial accountability

Read the case study