Control Your Cost with Cloud Optimization

With digital disruption rapidly changing the business landscape, more companies consider migrating operations to the cloud. The ability to use on-demand, scalable cloud models to achieve efficiency and business continuity, provides the impetus for organizations to accelerate their digital business transformation plans rapidly.

When businesses first opt for cloud migration, they usually start by setting up a few used cases to gauge the process. The initially used cases generate value, prompting the business to go full-scale into cloud resources, scaling up for transformational results. And this is where they experience an escalation in costs. The adoption process is split between the finance department, which wants to control cloud spending, and application owners, who are unwilling to consider resource reduction for their apps.

Irrespective of whether you have recently migrated to the cloud or have been cloud-enabled for a while, managing costs is one of today’s most pressing and debilitating cloud adoption challenges. As a result, enterprises are now looking at ways of cloud optimization for cost control to ensure that the process merit is not lost.

Cloud optimization and cost

Put simply, cloud optimization refers to the process of analyzing and configuring the allocation of cloud resources to maximize performance and minimize waste. When workload performance and compliance are correctly and continually balanced against the best-fit infrastructure in real-time, cost benefits can be realized and efficiency achieved.

Realizing cost reduction in non-cloud vs. cloud environment

Every organization wants to save money. But the way cost reduction is managed and efficiency is measured in a non-cloud environment differs significantly from a cloud implementation. In an on-premises network, costs are primarily related to hardware assets – several servers installed and people required to maintain them. If the company is looking to purchase additional equipment, what are the expected returns from new applications to cover these costs?

In the cloud environment, usage efficiency drives cost and how well the company has adopted the cloud network. How effectively is the organization’s use of shared resources? And is the organization modifying workflow schedules for optimal use of the cloud and taking advantage of downtime during non-peak periods?

Essential cloud optimization techniques for cost control
  • Measuring and monitoring: Adopting cloud service among businesses has led to the emergence of real-time cloud monitoring tools that keep an eye on resource utilization, application performance, and hardware issues. A holistic approach with end-to-end visibility into application performance is key to achieving cloud optimization.
  1. Measuring and monitoring allow alerts to be built into the networks, which notify teams when the real-time performance values do not conform with the user-defined baseline values—identifying the root cause of issues and automating corrective actions.
  1. Planning for capacity effectively by matching usage to storage class with ML and deriving the benefit of auto-scaling.
  • Right-sizing your instances: Cloud computing resources are costly, so you minimize infrastructure-related spending. However, if savings on the resources result in performance issues or downtime, then the exercise is futile. Maneuvering between reducing expenditure and keeping performance acceptable is the correct sizing problem. There are two ways to help with right-sizing instances –
  1. Cloud hosting should be able to run containers with granular resource allocation. The smaller the resource increase, the better. This helps select the required instance size and minimize over or under-allocation.
  1. Leverage modern cloud infrastructure where unutilized/idle resources are returned to the shared pool and not charged separately. This approach allows you to enjoy higher scaling limits and handle workload spikes incurring optimal costs.
  • Increasing elasticity: Elasticity refers to a cloud’s ability to expand or compress the infrastructural resources on a sudden-up automatically and down in the requirement so that the workload can be managed efficiently. At each point in time, the available resources are matched to the current demand as closely as possible, minimizing infrastructural cost significantly.

With cloud usage continuing to accelerate, the need to save on cloud costs has become more critical than ever. The uncertainties of the current business environment make cost optimization an urgent priority for nearly every company. Cloud cost management is not just an operational concern or merely about “cost reduction”; it’s a value-driven strategic move. Talk to our experts today for more information on how we can help you gain cost control through cloud optimization.

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