What is the goal of budget forecasting in Oracle Cloud?

The primary objective of budget forecasting in Oracle Cloud is to predict future financial requirements for cloud services. This involves analyzing current and historical data to estimate the costs associated with upcoming periods, which enables organizations to plan their budgets more effectively. Accurate budget forecasting ensures that businesses can allocate the necessary resources to manage their cloud spending and prepare for any financial commitments they may need to meet.

By focusing on predicting future costs, budget forecasting helps organizations avoid unexpected financial strains and allows for proactive decision-making regarding cloud resource allocation and investment. This capability is crucial in dynamic cloud environments, where usage patterns and associated costs can fluctuate significantly.

Identifying underperforming services, evaluating historical spending trends, and negotiating better rates with cloud providers are important but secondary activities that can stem from the insights gained through effective budget forecasting. However, they are not the central purpose of budget forecasting itself. Instead, they serve as actions that may follow after the forecasting process has laid the groundwork for informed financial management.