5 Ways to Optimize Your Cloud Costs Efficiently
Cloud computing is one of the fastest growing technologies in the world. Not just the multinationals, but even small and medium companies are adopting cloud computing rapidly, owning to its vast array of benefits. According to Statista, the global spending on cloud IT infrastructure is expected to reach nearly $100 billion by 2023.
One of the primary benefits of cloud computing is cost savings, especially on in-house IT infrastructure. However, not many organizations see the expected cost savings in reality.
As most cloud computing vendors will charge you for the resources you have ordered, not the ones you are using, you will need to optimize your cloud computing costs. It will help you get the most out of every penny you spend on cloud computing and also increase your efficiency.
Here are a few tips that will help you optimize your cloud computing costs efficiently.
1. Track Your Actual Consumption
The easiest way to optimize your cloud computing costs is to track your actual consumption. As an IT Company in Westfield, MA, we always ask our customers to take this approach. It involves checking your consumption and improving your efficiency to ensure no cloud resources are wasted.
In other words, you don’t have to compromise on your performance or scalability. However, you do need to recognize computing areas that are overconsuming and under delivering. So, the process is also called rightsizing your cloud computing network.
Contrary to popular belief, rightsizing is not a one-time deal. To reduce costs and increase efficiency, you will need to keep rightsizing periodically.
You can take a variety of steps to determine your actual consumption. For example, you can check for forgotten services that were turned on at some point, but are no longer in use. You can also identify unattached storage volumes and unused load balancers and NAT gateways.
Once the retention period has expired, you can rotate the logs to save your computing costs. Make sure you have a dedicated person or personnel to check your actual consumption. Also, create a rightsizing schedule. You can do it every month or every two months, or at any suitable time.
2. Use Heat Maps to Find Start and Stop Times
In most cloud computing environments, you can find several non-production instances like testing, developing, User Acceptance Testing (UAT), and Quality Assurance (QA). You don’t have to keep running these instances 24/7 as the respective teams will not be working round the clock.
Instead, if you create a schedule for On/Off or Start/Stop times for the same, you can save considerable costs of running these instances. If you have set work hours, you can schedule the timings accordingly for each instance.
Alternatively, you can use heat maps to identify the peak in computing demand for these instances and set the Start/Stop timings accordingly. For example, heat map analysis can tell you when your developers need the development servers. You can shut down the respective instances if there is no demand, say on a weekend or outside of work hours (overnight).
You can always turn on an instance in case of emergencies. If possible, you can use automation to schedule On/Off timings for instances. It will eliminate the human error, increasing the cost cutting efficiency further.
3. Try Multi-Cloud Solutions
Most people use multi-cloud solutions to avoid vendor lock-in. However, cost savings just is one of the many advantages of choosing multiple cloud service providers. It also helps you build a custom cloud computing environment that caters to your unique business needs, which one vendor often can’t provide.
As you have multiple options, you can prioritize how much and where to spend your money. For example, while you can use one vendor for your core and more secure work, your seasonal, small, and less secure tasks can be handled on a different cloud that offers lower rates for short-term instances.
However, don’t go overboard with multi-cloud options. Handling multiple clouds and their integration can be a demanding process. Also, some service providers offer volume discounts. If you don’t reach the cut-off volume required to get these discounts, you are going to lose the chance to save money.
Always make sure to consider your computing requirements to determine if you need more than one cloud solution. Also, take the cost of handling network traffic between different cloud service providers and staff training into account when making this decision.
4. Set Financial Control Policies
When it comes to the cloud, most organizations continue to follow the financial policies designed for on-site or outdated IT infrastructure. Cloud computing, however, is a highly flexible IT infrastructure, which can expand or shrink over time. That’s why you need to set financial control policies suitable for this ever-changing work environment.
One way to ensure better cost management is to monitor the use of cloud-computing consumption per team. You can use a system of proper naming and tagging to identify how much cloud computing resources are getting consumed by each team.
You can offer incentives to the teams that can bring down their cloud consumption without compromising their productivity. It can help boost cloud computing best practices among your employees. This, in turn, will help increase work efficiency further.
5. Reduce Idle Resources
Another effective way to bring down your cloud computing costs that your managed service provider will suggest is to identify and consolidate idle resources. Idle computing resources continue to utilize the CPU memory, which can increase your cloud computing costs significantly.
You need to identify such instances and consolidate them to reduce the costs. Alternatively, you can also go serverless to avoid paying for idle applications. A cloud computing application based on serverless architecture incurs charges only for the time required to complete the task.
As a result, unlike a server-based solution, you don’t have to pay for computing overheads when it is idle. Also, you get billed per-100-millisecond rate, not per-second. So, it can result in significant cost savings over time. Some cloud computing service providers also offer discounts and free usage for their serverless cloud solutions.
As you can see, cloud computing is the future. However, to get the most out of your cloud applications, you will need to bring down your spending significantly. Hopefully, these five tips will help you plan your cost-cutting measures quickly and more efficiently. If you need further help with managing your cloud computing environments and bringing down costs, we can help you. Share your doubts and feedback in the comments section.
Marco is the owner and founder of NetLogix, Inc. a Managed IT Security Services firm that has been helping small businesses by providing an innovative and unique blend of managed IT services throughout New England with expertise in Insurance, Legal, Medical & Professional Services. Learn more about Marco and NetLogix here.