The UK Government Has a Warning About Cloud Spending

February 1, 2024By Ben Bonadies

Cloud storage has become an indispensable part of business operations, so much so that, rather than discourage their use altogether, the UK government has issued a stern warning about the perils of uncontrolled cloud spending. The official guidance emphasizes the need for organizations, especially those in regulated industries like healthcare, to exercise caution and implement robust strategies for managing their cloud expenditures. The government's blunt statement on cloud services leaves no room for misinterpretation: "Be flexible in how you budget for cloud services, monitor your spending, and design your applications to take advantage of the cloud cost model." It's a stark admission that building a comprehensive picture of ongoing cloud spend is no easy task, one that could mean the difference between financial survival and succumbing to the chaos of 'bill shock.'

The Root of the Problem: Storage Fees 

The grim reality is that hidden fees are getting so out of hand that the UK government feels a responsibility to warn consumers of their potential danger, much like they do with cigarettes. The obscurity surrounding data egress and API calls makes budget planning an exercise in futility. Hidden fees aren’t just lurking; they’re actively ambushing budgets and dismantling financial stability.  

Picture this: fixed budgets clashing with the unpredictability of cloud costs. The result? A financial battleground where managing complexity is like navigating a minefield blindfolded. Cut through the fog and face the harsh truth – unpredictable cloud costs are not just a nuisance; they are a destructive force undermining the very foundations of business stability. 

When Wasabi conducted its 2023 Global Cloud Storage Index, the most shocking results came from respondents’ cloud spending. We learned that 48% of customers’ storage bills were going towards storage fees and, in cases where organizations went over their allotted cloud budget, the causes were all related to unexpected fees for data access, retrieval, and replication.  

This research backs up the UK government’s concern about unpredictable and uncontrolled cloud fees. They’re taking up nearly half of an organization’s cloud storage bill and they’re the cause of budget excesses. It’s time to stand up to them for good. 

Combating Excessive Storage Fees 

To navigate this challenging terrain successfully, organizations must not only embrace cost optimization strategies but also foster a culture of continuous monitoring and adaptability in the face of ever-evolving cloud dynamics. Choose a cloud storage provider with flat rate pricing, without egress or API requests. Keeping costs predictable is the best way to avoid “bill shock.” 

The only thing you can do now is learn the most you possibly can on how to avoid being left for dead by the unpredictable bills. Luckily for you… we are holding our own webinar where you will hear from Yusuf Mangera, Technical Architect at Imperial College Healthcare NHS Trust on how Wasabi Cloud Storage has empowered them to adopt cloud solutions with 100% cost predictability.  

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