The cloud has transformed how small and medium-sized businesses (SMBs) operate, delivering unmatched flexibility, scalability, and security—along with substantial cost-saving opportunities.
Yet, despite its many advantages, the cloud can quickly turn into an unexpected financial burden when not managed effectively. Many businesses unknowingly overspend on cloud services due to improper management, lack of strategy, or a simple misunderstanding of how cloud pricing works. Working with an inexperienced partner can worsen these issues and lead to even higher costs.
The good news? These pitfalls are avoidable. In this blog, we’ll highlight 3 common cloud cost management mistakes SMBs make with cloud services and share strategies to help you maximize your investment.
1. Failing to Decommission Unused Resources and Streamline Data Storage
Many businesses leave unused resources running in the cloud without realizing how much they’re paying for them. Whether it’s servers from legacy systems, outdated applications, or inactive accounts, failing to remove these assets can result in significant wasted spending. A thorough review of your cloud infrastructure can uncover these hidden expenses and eliminate unnecessary costs.
Beyond unused servers or applications, data storage is another area where SMBs waste money. Businesses frequently store all their data in high-cost, top-tier storage tiers—even files that haven’t been accessed in years. Over time, this adds up significantly, especially for organizations that generate large amounts of data but rarely use portions of it.
Solution:
Start by conducting regular audits of your cloud environment to identify and decommission unused resources. Use automated tools or partner with experts who can pinpoint underutilized assets to ensure you’re not paying for infrastructure that no longer serves your business.
For data storage, review and categorize your files based on their usage patterns. Move infrequently accessed data to lower-cost archive tiers that are specifically designed for long-term storage. By taking a more proactive approach to data management, you can avoid paying premium prices for files that are rarely touched.
2. Neglecting Power Management
Many SMBs operate during standard business hours, such as 8 AM to 6 PM, but keep their cloud infrastructure running 24/7. This leads to businesses paying full-time costs for infrastructure that’s only used part-time. For companies with workloads that drop significantly during evenings, weekends, or holidays, the financial impact of this oversight can be substantial.
Modern cloud platforms, including Microsoft Azure, provide power management tools that allow businesses to automate the scaling down of resources during off-hours. However, many SMBs are unaware of these tools or don’t implement them effectively.
Solution:
Evaluate your business’s workload patterns and identify times when infrastructure usage is low. Then, leverage power management solutions to reduce or shut down unnecessary resources during those periods. For example, non-essential servers or applications can be powered off overnight and reactivated during work hours. By matching your resource consumption to your actual operating hours, you can significantly lower your cloud costs.
3. Inefficient License Optimization
If you’re already using Microsoft 365 for email, collaboration, and other business functions, you may be missing out on opportunities to reduce your cloud spend. Many SMBs don’t realize that Microsoft 365 includes licensing benefits that integrate seamlessly with Microsoft Azure. For example, some workloads that run in Azure can utilize existing Microsoft 365 licenses, saving businesses the cost of purchasing additional licenses.
Unfortunately, businesses often overlook these benefits, resulting in double-paying for licensing or infrastructure. This is especially true for companies who don’t fully understand how Microsoft’s licensing ecosystem works.
Solution:
Work with an experienced partner to analyze your existing licenses and identify areas where you can optimize. An experienced team can help you understand how to take advantage of Microsoft’s built-in licensing incentives, ensuring you’re not paying twice for the same functionality. By aligning your licensing strategy with your cloud usage, you can unlock significant savings while continuing to leverage the full power of Microsoft Azure.
Avoid Inexperienced Providers: The Biggest Cloud Cost Management Mistake
All the above mistakes can often be traced back to one root cause: working with an inexperienced provider. When a provider lacks the expertise to properly design, implement, and manage cloud environments, SMBs end up paying the price
An inexperienced provider may set up your environment with default configurations, improperly size your infrastructure, or overlook key opportunities to optimize costs. Without a clear cloud cost management strategy, your environment could quickly become misaligned with your needs, leading to higher-than-necessary costs.
The cloud is also constantly evolving, with new cost-saving tools and licensing incentives introduced regularly. If your provider isn’t staying up to date, you risk falling behind and overpaying for an inefficient setup.
Why CBIZ?
Partnering with an experienced provider can make all the difference. At CBIZ, we specialize in helping SMBs optimize their cloud investments with expertise you can trust.
As a Microsoft Solutions Partner for Azure Infrastructure, we bring advanced certifications and decades of experience to the table. Our approach ensures your cloud environment is designed for maximum efficiency, cost savings, and long-term success.
Our team continuously optimizes your cloud setup, utilizing the latest tools, strategies, and incentives to deliver measurable results and a strong return on investment.
Ready to maximize your spend with effective cloud cost management? Contact us today, and let CBIZ guide you to a smarter, more cost-effective cloud environment.
