Cloud Strategy  ·  Cost Management

How to Identify (and Stop) Cloud Sprawl

Multicloud strategies are becoming the new normal — but working across multiple providers isn't a risk-free strategy. Here's how to spot cloud sprawl before it drains your budget, and the governance practices that keep it in check.

David W. Lucky · CloudScale Advisory · 4 min read
Multicloud Cloud Cost Optimization Governance Azure & AWS
A note on sourcing: This post revisits content originally published on Medium in 2021 as part of the Cloud Computing Management publication. The governance principles around multicloud sprawl remain just as relevant today.

It's no secret in this day and age: multicloud strategies are becoming the new normal for organizations that utilize public cloud services. In fact, at least 85% of enterprises that have undergone a digital and IT transformation now operate in a multicloud environment — and that number is expected to continue growing.

But while working with multiple cloud providers has several benefits — increased flexibility, protection against vendor lock-in, and a more tailored approach to your business, among others — it's not a risk-free strategy. Enter: cloud sprawl.

Cloud sprawl occurs when an organization fails to properly monitor and manage individual cloud instances. This can result in several issues ranging from poor documentation, insecure and non-compliant environments, lack of expertise or oversight, and unnecessary and costly spending. And for many businesses, going over budget and controlling spend is a critical challenge in the cloud.

85%
of enterprises that have undergone digital transformation now operate multicloud
3
common warning signs that cloud sprawl is creeping into your environment
$0
is what forgotten, unmonitored workloads should cost — but rarely do

What does cloud sprawl look like?

Cloud sprawl may look different depending on your organization, as it can appear in a number of ways. Three common signs of cloud sprawl include:

01
Poor communication
When various departments throughout a business begin using several different clouds without proper intra-business communication. This lack of visibility can lead to cloud instances that don't properly work together due to incompatibility issues or inconsistent data across an organization.
02
Rogue or redundant services
If different individuals can procure services without proper documentation, governance, and planning, companies end up with rogue or redundant environments — for example, a marketing team hiring a third-party developer to build a campaign on AWS while the company primarily runs production on Azure. The result: unused accounts, duplicate spend, and administrative, compliance, and security headaches.
03
Overuse
When businesses don't properly monitor their use of public cloud computing resources. Forgotten workloads left running overnight (or longer) become costly and prevent proper budget planning. As has been said, the cloud can scale faster than your budget.
Microsoft Azure Cost Management + Billing cost analysis dashboard showing accumulated cloud spend by service, location, and account

How can a business manage cloud sprawl?

The first step to managing cloud sprawl is identifying that it's happening. By performing regular company-wide audits of your cloud environment, you may recognize early-warning patterns that display the creeping of cloud sprawl into your business.

Create a centralized cloud strategy and record

To prevent the proliferation of cloud use and spending across departments, businesses must build a company-wide cloud strategy that includes all stakeholders. The cloud strategy should include policies on using and managing the cloud, migrations, and user controls and access. Automation of the right tools is recommended as part of a holistic strategy to containing potential sprawl. Services such as AWS Control Tower allow administrators to set up proper guardrails. Azure Governance provides tools and services to set up and maintain control with custom policies using Azure Blueprints, Azure Cost Management for monitoring cloud subscriptions, and much more.

Any and all cloud usage or costs should be recorded in a centralized location to prevent silos between departments. This allows everyone to understand how their use of cloud technology fits into the larger picture of the organization and makes clear if duplicate resources are being unnecessarily paid for multiple times by different parts of the business.

Partner with a managed cloud services provider

Constantly monitoring and managing the cloud throughout a business can be a time-consuming and expensive ongoing process. While cloud sprawl can lead to out-of-control spending, the effort required to rein it in may feel even more cumbersome. By working with a cloud management provider, your business can enlist the help of third-party experts to receive insights, tooling, recommendations, and support on how to effectively and affordably deploy a multicloud strategy.

Cloud sprawl is a governance problem before it's a cost problem. The businesses that get ahead of it treat visibility and accountability as day-one requirements, not a cleanup exercise after the bill arrives.

Your cloud environment isn't doomed to sprawl

The good news is cloud sprawl is not an inevitable side effect of implementing a multicloud strategy. With proper planning and strategic cloud adoption and migration practices, it can be avoided from the start. Starting with the right guardrails and following that up with regular audits and diligent monitoring with the proper tooling is foundational. Widespread communication and an overarching cloud strategy within an organization are critical components needed to ensure cloud success. Working with a managed cloud services provider is a further asset in helping your business tackle sprawl and reap the full benefits of a multicloud environment, without burning holes in your budget.

Wrangling multicloud sprawl and cost visibility?

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DL
David W. Lucky
Founder, CloudScale Advisory
15+ years bridging technical complexity and business value across cloud, AI, and enterprise ecosystems. Focused on helping companies sharpen positioning, accelerate GTM execution, and build partner ecosystems that drive growth.