As more and more organizations continue to embrace cloud technology, CFOs and CIOs are grappling with an existential cloud question. How can they truly realize the value of the cloud? In life and business, many benefits of the cloud are intangible. While you can measure aspects like scalability, agility, flexibility, and speed, the major benefit of the cloud lies in enabling innovation. In this article, David Drai talks about ways you can use artificial intelligence to reduce cloud costs at Transforming Data With Intelligence.
Benefits of Using Artificial Intelligence with the Cloud
Implementing artificial intelligence (AI) tools can boost productivity and operational efficiency, and improve customer experience by automating processes and tasks. As organizations shift to the cloud for all their virtual IT needs, a lesser-known benefit of AI is that it can reduce cloud costs. Gartner estimates that cloud computing will account for 14 percent of enterprise IT spending in 2024, up from 9 percent in 2020. The cost of shifting to the cloud will increase following the COVID-19 pandemic. You can reduce cloud computing costs in two ways: by automatically detecting cost spikes and glitches and forecasting future cloud costs.
Increase in Cost
Spikes in cost usually occur when someone makes a mistake using queries or utilizes a cloud resource at a higher price. According to Gartner, companies that fail to recognize their mistakes in cloud adoption will experience a 20- to 50-percent increase in costs.
Another factor fueling cost is increasing queries to cloud-based data services. For example, some charges are based on requests with Google Cloud Platform’s (GCP) BigQuery database. A typical GCP bill is $115,000 per month, but daily BigQuery queries can drive up the cost by thousands of dollars.
Estimating Future Costs
The use of AI can allow enterprises to forecast the future costs of different cloud services. AI-based solutions can help businesses better manage their overall cloud spending by analyzing factors that drive costs. In a forecast using AI-based algorithms, companies can determine how much each cloud service will consume in the coming month, incorporating historical data and trends in current usage.
Implementing Artificial Intelligence (AI)
Software-as-a-service apps billed by consumption, including dynamic billing applications such as Slack, are candidates for AI. Companies may shy away from AI because they do not understand its capabilities or due to past failures with AI. But AI can help reduce cloud costs and give you the most value from your cloud services.
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