In 2018, consumption of public cloud services in Norway was just under NOK 10 billion. Next year, Statista estimates that consumption will reach NOK 30 billion.
Rolf Frydenberg. Photo: Manag-E Nordic
If we assume that 20 percent of spending is wasted, this means that Norwegian public and private institutions may waste more than NOK 6 billion next year. Many experts claim that cloud loss is actually 30 to 50 percent, not 20 percent.
The country’s financial departments are constantly receiving invoices that each seem small and questionable. Because invoices today are a constant stream of small transactions, many Norwegian companies lose sight of the big picture. The overall cost gets high quickly.
In the past, servers represented a huge investment worth several hundred thousand kroner. The amount that automatically sparked the discussion. but today? A thousand a day? You can quickly use this in a regular Norwegian business without it causing a stir, even if in less than three years it will exceed a million!
It’s time to clean up. Or rather: let machines do it for us
The consequence? Service offers that disappear because there is no money for more. They have already been used in cloud waste.
The general manager has a lot of balls to keep track of. The range of IT services is large for the average Norwegian business. We have one app for almost every problem.
It is possible to track this manually. At least if the developer department consists of a few people. But what when the number rises to 20? Or 200? Complexity has become a beast. If one person does the cleaning, the task will simply be prohibitive.
It’s time to clean up. Or rather: let machines do it for us. They have the ability to track complex IT systems that far exceed our human capabilities. Software that makes the most of every penny a company spends on cloud services. Yesterday’s fun ends. FinOps correlates with the flow of cost data coming from different cloud providers, providing an overview – and indicating measures that can be taken.
In addition to saving society billions of tax kroner, the advantage is that we will have more time to do our work. Greater opportunities to create services and offers that people need.
Rolf Frydenberg
General Manager at Manag-E
“Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst.”
