Cloud cost optimization is the process of minimizing resources without impacting performance and scalability of workloads within the cloud. Cloud cost best practices are rooted in determining methods to eliminate costs by identifying unwanted resources and scaling services accurately. There are many external factors including inflation and a changing labor market that force businesses to restructure financial priorities.Though many models of cloud computing offer flexible payment structures and pay-as-you go methods, cloud cost optimization strategies will allow businesses to tighten their grip on controlling resources. Additionally, cloud cost optimization tips will also highlight if the amount of resources being used are in alignment with the infrastructure and business goals of an organization.The following are strategies that will help run applications in the cloud at lower costs.
1. Eliminate Resources
One of the most simple, yet effective cloud cost-saving strategies is to eliminate resources that are not fully benefiting a business. For example, users may allocate a service to a workload that is temporary. Once the project is complete, the service may not be eliminated instantly by an administrator, resulting in unwanted costs for the organization.
A solution would be to examine the cloud infrastructure and look for servers that are no longer needed within the environment if they aren’t serving business needs. Cloud cost optimization strategies are not just about eliminating spending but also ensuring that costs are in alignment with an organization’s objectives. If a particular server or project is no longer serving a business, eliminating this resource will be beneficial as it enhances cloud infrastructure optimization.This can be accomplished through routine scanning and testing to identify resources that are idle.
2. Rightsize Services
Rightsizing services is allocating cloud resources depending on the workload. By allocating resources, rightsizing allows users to analyze services and adjust them to the appropriate size depending on the needs of a business. By evaluating each service task and modifying the size until it matches a specific need, cloud computing services will maximize capacity at the lowest possible cost, resulting in cloud cost reduction.
In addition, many businesses rely on vendors to deploy cloud resources when they do not understand operational goals. The solution to this problem is to develop rightsizing approaches that are customized to your business, strengthening cloud resource optimization. Customized approaches develop transparency by creating a clear view of what resources are needed for your specific cloud infrastructure. Rightsizing services will also assist with analyzing the volume of certain metrics that are being used and can inform business decision makers to either upgrade or terminate specific services.
3. Create A Budget
Develop a clear budget between engineers, product managers, and other team members in regard to utilizing cloud computing services by setting a monthly budget rather than an arbitrary number. Building a culture that is rooted in transparency and cost awareness will also influence how users utilize cloud services.
Cloud computing platforms may have some small incremental changes when it comes to pricing. However, users should keep an eye out for any unexpected spikes that may impact cloud spend optimization and overall spending. A solution here would be implementing an alert when cloud computing costs are going over the budget. Detecting the root of these large increases and analyzing the cause can also ensure that overspending on this particular factor will not occur again, allowing for stronger cloud cost control.
5. Select Accurate Storage Options
Organizations need to consider many factors when selecting an appropriate storage option. Performance, security needs, and cost requirements are all components that should be taken into consideration when selecting an appropriate storage model. Selecting a storage tier that is user-friendly and is also aligned with a budget is critical to cloud cost efficiency. Storage tiers that are underused should also be removed for cloud cost reduction purposes.
6. Use Reserve Instances (RI’s)
If an organization is using resources for a specific amount of time, consider purchasing a cloud cost optimization tool, such as a reserved instance. These are prepaid services that are discounted and are similar to saving plans that are ideal for steady workloads that have a clear timeline. When purchasing an RI, the organization selects the type, a region and a time frame that may vary depending on the purchase.
7. Manage Software License Costs
Software licenses can often have high costs and monitoring them can be challenging in regard to cloud cost management. There are often forgotten fees that are associated with licenses and many organizations face the risk of paying for licenses that they have stopped using. Conducting a thorough software audit will not only help you to understand what software is being used within the business, but it will also demonstrate what software is critical and what licenses are no longer needed.
8. Define Clear Metrics
Highlight what metrics are most important to your organization. Metrics, such as, performance, availability, and cost can also help to create reports and dashboards that outline activity in the cloud. Major cloud providers have a process whereby metrics are tagged which allow an organization to create a detailed report that provides insight on cloud cost analysis. These reports should be used to track spending as they outline trending patterns in regard to finances.
9. Schedule Cloud Services
It is common for organizations to have services that are idle and not being used during certain times of the day. Reduce spending by scheduling services during specific time slots in order for them to be fully used. A duty scheduler tag can be used, and the scheduled services will then be implemented. Leveraging a heatmap can also help to establish when services are being underused in order to determine an effective scheduling arrangement.
SADA, an organization that serves as a cloud consultant and helps other businesses in their own cloud journey, recognizes how effective this strategy can be. SADA’s Director of Customer FinOps, Rich Hoyer, states that “Of these strategies, we have found that scheduling cloud services’ runtimes are often one of the largest overlooked savings opportunities we encounter. Specifically, non-production workloads, such as testing, development, etc., are commonly left running full-time, 24/7, instead of being scheduled to run only when used. The potential savings of running those workloads only during business hours are often surprisingly large, and they can usually be realized via simple automation and modest revisions to maintenance schedules. The first step is to analyze exactly what is being spent on these resources during the hours they sit idle. The number is often large enough to quickly motivate the implementation of a workload scheduling regime!”