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Clouds are costly, more so with AI

“AI will be the best or worst thing ever for humanity. We have to get it right.” - Andrew Ng, AI educator and cofounder of Coursera Rethink...

“AI will be the best or worst thing ever for humanity. We have to get it right.” - Andrew Ng, AI educator and cofounder of Coursera

Rethinking "Cloud Finops"

Over the past decade, most companies have invested heavily in not just primarily building their own hardware infra, but renting out "clouds". Today, companies are shifting from traditional cost control to a more strategic view of cloud spending. As companies' AI workloads rise steadily, the search is on for more efficiencies. The focus is on trying that cloud infrastructure delivers sustained business value.

Hybrid cloud optimization

Companies now blend on-premises and cloud systems to match workload needs and cost patterns. It is clear that automation and AI can optimize infrastructure and improve savings. To reduce waste, a holistic approach that unifies tools and processes is being adopted.

Cloud adoption shaped by readiness

Different companies have their own approaches to cloud maturity and preparedness. Some decide to stay on-premises (on prem) or move to cloud depending on security, application behaviour and costs. The objective is finding the right balance for each business model, which can vary from use case to use case.

How to manage costs

Finance teams struggle when cloud expenses lack clarity, due to complicated jargon. Hidden charges, idle resources and approval delays often complicate budgets. There clearly is the need for better cost alerts, lifecycle governance and collaboration between IT and finance to control runaway usage. In the AI-first era where companies pursue AI innovation, they must keep cloud performance aligned with budgets. Leaders note that outcomes improve when teams adopt a disciplined mindset, track consumption closely and use cloud resources only where they add measurable value.

Summary

Cloud finops is evolving into a disciplined practice that blends automation, financial rigour and workload awareness. Organisations are learning to balance cloud agility with cost responsibility while preparing for increasingly AI driven demands.

Food for thought

Are companies truly ready for the cloud costs that large scale AI adoption will create?

AI concept to learn: Cloud Finops

Cloud finops is the practice of managing and optimising cloud spending through shared responsibility across technology and finance teams. It helps organisations gain visibility into usage patterns, avoid unnecessary costs and align cloud investments with business goals.

Cloud computing costs structure

[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]

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