Jun 12 2025
Cloud

Cloud Cost Analysis and Cloud Cost Management Tools for K–12 Schools

Solutions ranging from external support to cost management software can help maximize educational technology resources while optimizing spending.

Schools are increasingly turning to cloud technology, evidenced by the projected growth of the K–12 cloud computing market, which is expected to reach more than $51 billion through 2028, according to Technavio.

Some K–12 organizations may be interested in the potential cost savings of the cloud compared with on-premises systems. However, the associated storage, licensing and other cloud-based fees can affect what schools ultimately spend.

A cloud cost analysis can help them identify the most effective configuration.

When South Carolina’s Florence 1 Schools began investigating an increase in its cloud use as a way to reduce tech expenses four years ago, the district examined its computing, storage and network needs, says IT Security Officer William Freeman.

Click the banner for K–12 cloud trends in the CDW Cloud Computing Research Report.

 

While the district was previously maintaining a sizable data center that incurred ongoing chiller system and backup generator costs, Florence 1 Schools has since transitioned to pay-as-you-go pricing and just two onsite racks.

“If we want to do something that needs a lot of GPU and CPU power, I don’t need to purchase a farm of servers,” Freeman says. “I rent those. If it only takes me five minutes, that’s all I pay for. I can spin them up, do the work and spin them back down.”

How Cloud Cost Analysis Differs From Cloud Cost Management

Cloud cost analysis involves assessing the expenses incurred by schools’ use of the cloud and IT infrastructure. K–12 IT teams can use cloud cost management tools in tandem with cloud cost analysis to optimize and control their expenditures.

For example, school leaders may examine what they’ve paid for hardware infrastructure elements, their virtual machine-related costs and data transfer patterns, such as the amount of information moving between cloud resources, including the corresponding cost.

After reviewing their expenses, they might choose to adopt a different pricing model or move additional items to the cloud from on-premises storage. Cloud cost management software can help organizations continue to track their usage.

DON’T MISS: How did Indianapolis Public Schools make the leap to the cloud?

Cloud Spend Management Tools and Expertise From Vendors

Several cloud service providers offer resources that can assist schools with cloud cost analysis and cloud cost management. Microsoft Azure’s cost analysis feature can help organizations monitor and assess their monthly bills, and IBM’s online calculator gauges pricing for the IBM Cloud product configurations.

Florence 1 Schools used online cost analysis tools from Amazon Web Services (AWS) to evaluate its cloud-related spending for the next three to five years.

“I can see if I were to move this over, here is what my monthly spend looks like,” Deputy Superintendent Kyle Jones says. “That helps the end user make those decisions.”

The AWS team members who’ve provided guidance throughout the district’s cloud journey are happy to hop on calls to offer support, Freeman says.

“We ran into a stumbling block: Part of our financial system depended on Microsoft SQL Server for the back end,” he says. “AWS was able to pull in an expert who had a breadth of esoteric knowledge. Without that, we wouldn't have been able to go as fast or full as we needed to.”

States Provide Cloud Management Approaches for Schools

Two educational technology initiatives in Michigan have also used AWS cloud spending management tools and insight to pinpoint expenses.

Michigan’s MiGreatDataLake project, stemming from a $13.5 million Michigan Department of Education grant, involves the creation of a platform to collect, analyze and share educational data from multiple school districts with the goal of facilitating operational efficiency and personalized student learning opportunities.

LEARN MORE: School leaders reveal what life is like in the cloud.

Meanwhile, a $31.6 million Michigan Department of Education grant awarded to the Kalamazoo Regional Education Service Agency is funding the MiCloud program. The program will provide a centralized, secure cloud hosting option for K–12 districts, says Tammy Evans, MiCH IT director at the Michigan Association of Intermediate School Administrators.

Districts can have Microsoft- and AWS-certified solution architects review their current cloud infrastructure and design customized migration and implementation plans, which the districts can manage or engage KRESA’s MiCloud team to install and maintain.

Michigan schools can also consider the cybersecurity benefits of these opportunities, such as enhanced disaster recovery capabilities. CoSN’s 2025 State of EdTech District Leadership report reveals that 34% of K–12 districts have experienced a cyberattack-related cloud service disruption.

“We’ve seen an enormous increase on attacks on education entities,” Evans says.

34%

The percentage of K–12 districts that experienced a cyberattack-related cloud service disruption

Source: CoSN, 2025 State of EdTech District Leadership, May 2025

With AWS’ assistance, project organizers were able to outline potentially low-cost cloud management, Evans says. “If you want to do something very specific — not migrate an entire environment, but maybe put your backups up there — you can plug it into the cost modeler. That really helped guide our thinking around what to consider.”

By the school year’s start, Evans expects the MiGreatDataLake proof of concept to be established and 185 of the state’s nearly 900 districts to be onboarded to MiCloud.

Evans says AWS’ input has been integral.

“Building an environment to post a statewide system is a longer-range planning process,” she says. “They have concepts of these technologies and support structures, so the implementation is expedited.”

UP NEXT: Cloud-based solutions enable an online school to expand and advance.

Gugurat/Getty Images
Close

New AI Research From CDW

See how IT leaders are tackling AI opportunities and challenges.