Cloud computing costs vary greatly between different services and vendors. While the majority of organizations can accurately estimate the costs of setting up and maintaining their own IT infrastructure, many cannot accurately estimate the costs of shifting their operations to the cloud.
Cloud computing offers greater flexibility and often an improvement in efficiency. Cloud-based on-demand resources enable organizations to quickly scale up and down, and automation capabilities provide a higher level of efficiency. However, many organizations express uncertainty as to how to accurately estimate the costs of dynamic (and often ephemeral) cloud resources.
To properly estimate, control, and optimize cloud computing costs, organizations need to understand the parameters that impact costs, assess their needs, design a strategic plan, and continuously monitor and optimize usage and billing. To help organizations gain control over costs, cloud vendors offer several pricing models and cost management and optimization tools. There are also third-party tools that can help optimize cloud costs.