How cloud software companies can cut costs without impacting on quality

When evaluating the value of any business, one of the most important factors is the cost of goods sold (COGS). To put that another way, for every pound that a business makes, how much does it cost to deliver?For a traditional business, there are many ways to minimise costs. A company could optimise its supply chain, find cheaper raw materials, or negotiate better rates with its suppliers.But in the age of the cloud, a digital company’s costs might grow 10 times overnight as a result of a sudden increase in traffic volume, or a one-line configuration change. For every surprise event, a cloud company’s profit margin can be significantly eroded.As a result, keeping on top of COGS is a key focus area for any digital company. Here are some tips for reducing your costs and improving your bottom line.