The cloud is an asset for organizations that offers unlimited scalability at lower costs with the available resources. Efficient cloud service providers charge customers for only the resources they order, whether they use it or not. In a recent survey report, Gartner estimated that more than 70% of cloud costs are wasted. By employing some cloud cost optimization Reduce your cloud spending by 47% with E2E Cloudpractices, these wastes can be minimized.
- What is Cloud Cost Optimization?
Cloud cost optimization is the process of reducing costs on the cloud by pointing out the mismanaged resources for eliminating waste, reserving capacity, and using appropriate sized computing services for better scalability. Migration to the cloud for speed and agility to the cloud platforms may be the root cause for hefty monthly bills of your company. Being a CFO, every company owner should take this into account and look for the best way to optimize cloud costs for an ultimate cost-effective infrastructure.
- Cloud Waste
Along with achieving agility, the lack of defined processes and control can cause cloud waste with servers running when not in use, during the night, and on weekends. Other reasons can be oversized databases, optimized servers, and disused storage volumes in the cloud.
2.1 Some Worrisome Cloud Wastage Figures
We had a glimpse of the cloud wastage with some cloud practices in the organizations above. Let us have a look at the big picture with real findings of 2016 when the IaaS market worth was $23B:
- 66% spend on public cloud IaaS is on computing resources such as servers, VMs, and cloud instances.
- Only 46% of enterprises track and go for correctly sized resources
- Non-production processes such as development, testing, QA amount to 44% of cloud resources spend
- 31% of companies watch unused storage volumes
A rough calculation suggests that companies can save up to $6 billion with public cloud cost optimization.
- How CFOs can Opt for Cloud Cost Optimization?
CFOs can approach their IT and Infrastructure teams to install appropriate tools and policies to optimize cloud costs in the following ways:
Take a look at the existing environment where with a single dashboard view, multiple accounts, regions, and cloud providers can be accessed. Also, look for unused or unattached resources. It can be when an administrator may spin up an interim server for a function and forget to delete it. Or in another case, the administrator may not remove storage attached to the instances. These frequent happenings in IT departments can raise cloud costs and will include charges for resources once purchased but not used any longer. A CFO must identify those unused resources and remove them completely.
- Identify Idle Resources
After identifying unused resources, the very next step is to label idle resources. An idle computing resource may have 1-5% CPU use. Thus, it’s a major waste on the enterprise cloud bill. A CFO is required to recognize such instances and consolidate computing jobs into fewer instances as a key cloud cost optimization strategy. In the data centers, it’s often strenuous, costly, and ineffectual to add new resources in the data center. Using the cloud instead for autoscaling, load balancing, and on-demand functions will scale up the computing power manifolds.
iii. Go for right size Computing Services
Analyzing the right size computing services and modifying them to is advisable. It’s difficult to size instances with more than 1.7 million possible combinations. There can be options from server size, database, memory-optimized servers, graphics, storage capacity, throughput, and many more. Right-sizing can reduce cloud costs and can help in achieving peak performance from the resources CFOs have bought for their company.
Heatmaps are visual tools that show peaks and valleys in computing demand and are important cloud cost optimization mechanisms. The values obtained can be helpful for CFOs in knowing the start and stop times and can help in reducing costs. Heatmaps can state whether servers can be shut down on non-operating weekends. Another option is to optimize cloud costs by leveraging SaaS tools aimed at a single purpose.
- Consider Multi-Cloud
To avoid vendor lock-in, multi-cloud solutions are preferable. This strategy can increase cloud availability as well as uptime as the organizations may risk losing humongous discounts with a single cloud vendor. For instance, it is mindful of making a spend of $1 million on multiple vendors rather than sticking to one to get a versatile set of services. CFOs can save money with a multi-cloud strategy as the administrative hassles of switching between different platforms can be reduced, heavy network and traffic pay between clouds will be eliminated too.
With cloud cost optimisation, a greater amount of savings along with the best performance can be achieved, harnessing the potential of the cloud. The ultimate cloud prospects can ensure security, compliance, and cost management, helping in optimisation workloads and alerting CFOs of any vulnerabilities.
We hope we were able to suggest some practical and useful ways for cloud cost optimisation, which should be navigated to reduce spends and result in higher turnovers in coming months. Cloud cost optimization has a flair for re-architecting a business completely.
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