Chapter 9. AI and Automation for Cloud Cost Management
It’s hard to overstate how important cloud environments and effective cloud cost management strategies are to modern organizations. In 2025, companies worldwide will spend an astonishing $723.4 billion on public cloud services, according to Gartner projections. This represents a significant jump from $595.7 billion in 2024. Cloud environments and services have become central to modern software delivery, and cloud spending has become a substantial line item in IT budgets.
Managing these growing costs has become a complex problem. Recent industry estimates suggest that 30% of cloud spending is wasted. The reasons are numerous: organizations often provision more cloud resources than they actually need, leading to unused or underutilized instances and forgotten services, which still incur costs.
In this chapter, we’ll jump into the thorny problem of cloud cost management. We’ll look at how practices have evolved from the early days of cloud computing, giving rise to the discipline of FinOps (financial operations). Since carbon footprint and cloud cost management are interconnected, we’ll look into how cloud cost management leads to environmental sustainability initiatives.
We’ll also explore how AI-powered solutions are addressing the challenges of unpredictable spending, time-consuming optimization tasks, and the complexities of multicloud governance. We will look at specific AI-driven strategies for optimizing cloud resources, ...
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