Cloud cost management can be challenging due to factors like over-provisioning, unallocated resources, and hidden costs. Companies can address these challenges by implementing performance monitoring and cloud management tools to identify and eliminate over-provisioned resources. Regularly auditing and removing unused virtual server infrastructure and obsolete snapshots also helps. Additionally, using cost calculators and cloud cost management platforms to track and optimize expenditures is crucial. Leveraging strategies like IP leasing can further reduce upfront and ongoing costs.