Cloud Spend vs. Budget
Actual cloud infrastructure spend as a percentage of approved cloud budget
What is Cloud Spend vs. Budget?
Cloud spend versus budget compares actual spending on cloud services with the amount budgeted. It shows whether cloud costs are under control.
Cloud costs can grow fast and unpredictably because of how services are consumed, so close tracking is essential.
How this KPI is measured
- Function
- Information Technology
- Sub-function
- IT Cost Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- Financial control
- Unit
- %
- Measurement frequency
- Monthly
- Formula
- (Actual cloud spend / Budgeted cloud spend) × 100
How to calculate it
Divide actual cloud spend by budgeted cloud spend, and multiply by 100.
For example, if actual spend was 130,000 against a budget of 120,000, the result is about 108%.
Break spend down by team, service and project using tagging, so cost can be assigned to those responsible, and look at trends during the month, not only at the end.
Where it is used
Controlling cloud cost
Spot overspend early.
Holding teams accountable
Show who uses what.
Planning budgets
Forecast growth.
How to improve it
Tips and common mistakes
- Tagging is essential for accountability.
- Watch for forgotten resources.
- Forecast with growth in mind.
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