Data has become the lifeblood of modern business — but for a growing number of Australian organisations, the cost of processing that data is climbing at an alarming rate. Storage, compute, and inefficient pipelines are all combining to create an increasingly expensive problem.

Axle Pellegrino, a data specialist at Novon, has worked across banking, energy and logistics — and she sees the same pattern repeatedly. “The sheer volume of data being collected continues to grow exponentially. Organisations are generating vast amounts of transactional data, customer insights and IoT streams. As the data increases, so do the costs associated with storing and processing it.”

Where the Money Goes

Beyond raw volume, inefficient data architectures are amplifying the problem.

“Many companies are running redundant or overly complex data pipelines, unnecessarily moving the same datasets across multiple cloud environments,” Axle explains. “That racks up costs quickly, especially on platforms like AWS, Azure and Google Cloud, where every query, transformation and data movement comes with a price tag.”

Data sprawl is another silent driver of spend. “A lot of organisations don’t actually know what data they have or where it’s stored. That results in duplication and unnecessary expense,” she notes. “Businesses also tend to design data solutions without considering their actual use cases — which leads to inflated, inefficient systems.”

Strategies for Cost Control

Get Visibility First

“Many organisations don’t track their data-related spending effectively because the costs are hidden in cloud bills or scattered across departments,” Axle says. “A thorough data cost audit is a crucial first step.” Without visibility, optimisation is guesswork.

Optimise Your Pipelines

“Businesses should eliminate redundant processes, reduce unnecessary data movement and refine their queries,” Axle advises. “Cutting duplication of frequently run or expensive queries can significantly reduce costs with minimal impact on performance.”

Practise Lean Data Management

“Many organisations are storing and managing enormous data warehouses when only a fraction of the data is actually needed for analysis or operations. Reducing those large datasets to smaller, more focused sets can take a real chunk out of waste and cost.”

Review Software and Licensing

“Licensing reviews are crucial, particularly for tools that charge per seat. Many businesses overpay for software that isn’t being fully used. Regularly reviewing and optimising licences is a straightforward way to cut costs.”

Reconsider Real-Time Where It Isn’t Needed

“Many businesses process data in real-time when batch processing would be more cost-effective. If immediate insights aren’t essential, transitioning to batch can significantly reduce costs without compromising analytical value.”

How Novon Helps

Novon helps Australian companies take back control of their data spend through smarter architecture, lean data management and optimised processing — reducing cost while maximising the value pulled out of the data itself.

“In an era where data is both a vital resource and a significant expense, mastering data management is key to business success,” Axle concludes.

About the Author

Axle Pellegrino is a Senior Business Intelligence Consultant at Novon, specialising in data strategy, analytics and BI solutions. With 13 years of experience across banking, energy and logistics, she has helped businesses optimise their data ecosystems, improve reporting efficiency and reduce unnecessary processing costs. Axle has a track record of rescuing critical projects by quickly assessing data challenges and delivering scalable, cost-effective solutions.