Glossary

Cloud Cost Optimization

What is Cloud Cost Optimization?


Cloud cost optimization refers to the process of reducing and optimizing cloud spending, while ensuring optimal resource utilization and maintaining desired performance levels. It ultimately involves managing cloud costs without compromising business objectives or user experience.

What is Cloud Cost Optimization?


Cloud cost optimization refers to the process of reducing and optimizing cloud spending, while ensuring optimal resource utilization and maintaining desired performance levels. It ultimately involves managing cloud costs without compromising business objectives or user experience.

Related Definitions

Maverick Buying

What is maverick buying?


Maverick spending, also known as rogue spending, can be defined as any purchasing that takes place within an organization, outside of an established procurement process.


In the context of SaaS, maverick spending refers to the acquisition of cloud-based software solutions that are purchased unbeknownst to the finance, IT or procurement teams, and in a way that does not comply with the organization’s formal IT procurement process — and so may not be approved, vetted, or appropriately documented.

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Break Clause

What is a break clause?


A break clause refers to a provision within a SaaS agreement that allows either the customer or the SaaS provider to terminate the contract before the end of the initial term. A break clause will typically set out the conditions or requirements that must be met for either party to exercise their right to terminate an agreement early. For example, a break clause can enable users to cancel their subscription if they are dissatisfied with the service.

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Multi-Tenancy Environment

What is a multi-tenancy environment?


In cloud computing, a multi-tenancy environment refers to a situation where multiple users, also referred to as tenants, share the same physical infrastructure and resources. These resources, such as computing power, memory and storage are dynamically allocated based on the needs of each tenant. Each tenant’s data is, however, stored in separate databases to ensure both privacy and security.

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Reduction Clause

What is a reduction clause?


A reduction clause refers to a provision in a software agreement that allows customers to reduce the number of licenses or users covered by their subscription during the term of an agreement. This provides customers with flexibility to adjust their plan to meet evolving business needs, while avoiding paying for licenses or users they no longer require or needing to terminate the contract. The specific terms and requirements of a reduction clause may vary depending on the SaaS provider and the subscription agreement, for example it may be subject to a minimum number of licenses or users.

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Tail Spend

What is tail spend?


Tail spend refers to the unmanaged purchases made within an organization that fail to pass through an official procurement process. On account of their low value, the costs incurred by these purchases are seldom monitored by financing teams as they are generally too small to be deemed “strategic”. The problem, however, is that they can make up as much as 20% of a business’ total spend.

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Auto-Scaling

What is auto-scaling?


Auto-scaling refers to the automatic adjustment of cloud computing resources based on an organization’s current demand and workload. It dynamically adjusts the allocation of resources to match the evolving requirements of an application or system without the need for manual intervention.


There are a number of benefits to using auto-scaling, the first being cost efficiency. By ensuring that resources are scaled up or down as and when needed, organizations can avoid over-provisioning and subsequently reduce unnecessary expenses. It also helps maintain consistent performance levels by automatically adding resources during peak demand periods.

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