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We recently worked with a company that had been purchased out of administration. The main reason the company had gone into administration was that it couldn’t generate enough revenue to cover its Cloud costs. An extreme example, but most companies are overspending on cloud. The good news? This is a fixable problem.

A number of factors are combining to make technology costs increase rapidly, and this is happening at a time when organisations are facing other cost pressures. We lay out what is going on to make software application and cloud services costs rise - including vendor actions, Shadow IT and the increasing use of AI, plus what you can do about it.

Organisations are increasingly dependent on technology, and most of that technology now lives in the cloud. Unlike on-premise software, if a cloud software vendor disappears, so can the software. How big a risk is this? What can you do about it?

Everyone’s moving their IT to the cloud, right? Maybe not. It appears some organisations are moving off cloud services and onto hardware that they own. Is this a real phenomenon or is it a narrative that hardware vendors and other interested parties are pushing? The amount of cost savings being quoted by some companies that have moved off cloud suggest it is real. Could it make sense for your organisation to start running more of its applications on its own infrastructure?

Shrinkflation is where the buyer pays the same while seeing the value delivered shrink. Coined as a term relating to confectionery and other household goods, shrinkflation also very much applies to software, and it is impacting businesses significantly. In this post we lay out how shrinkflation and other pricing tactics raise costs, and what you can do about it.

Shadow AI is the use of AI technology by employees without their organisation's knowledge. While it has clear potential benefits, it also comes with a range of novel risks, so organisations need to put governance in place around the use of AI.

Software costs are rising, which affects all organisations. Smaller businesses don't have the resources to manage their IT costs in general and Cloud costs in particular, so they risk having their bottom line being hit particularly hard.

Shadow IT is a term used to describe technology that an organisation may not be aware of. This can be as much of an issue for the Finance function as it is for IT.

Cloud computing was meant to reduce costs. It's not working out that way, and you should take action.

AI promises cost reductions but requires substantial investment, with the average new AI initiative costing $1.5 million. Ensuring existing software isn't wasteful is crucial, as 30% of SaaS spending is often redundant. Costimised can help identify and cut these excess costs

Despite Cloud promises, IT spending has surged due to pandemic-driven digital adoption and AI investments. Decentralized SaaS purchases lead to 30% waste. Costimised can help identify and reduce these excess costs