For businesses leveraging cloud technology, cost optimizations should be a priority. Cloud computing helps organizations boost flexibility, increase agility, improve performance, and provide endless opportunities for cost optimization and scalability. Users of cloud service providers like Google Cloud, AWS, and Azure should understand the ways to cloud cost optimization. In this article, we'll discuss why cloud cost optimization should be a business priority.
What is cloud cost optimization?
Cloud cost optimization is a practice of reducing the overall cloud expense of a business by right-sizing computing services, identifying mismanaged resources, reserving capacity for high discounts, and eliminating waste. It provides ways to execute applications in the cloud, leveraging cloud services cost-efficiently and providing value to businesses at the lowest possible cost. Cost optimization should be a priority for every organization as it helps maximize business benefits by optimizing their cloud spending.
Here are some of the most common reasons why cloud cost optimization is a business priority.
- Rightsize the computing resources efficiently
AWS cloud support and many other cloud providers offer various instance types suited for different workloads. AWS offers savings plans and reserved instances, allowing users to pay upfront and thus reduce cost. Azure has reserved user discounts, and Google Cloud Platform offers committed user discounts. There are multiple cases where application managers and developers choose incorrect instance sizes and suboptimal instance families, leading to oversized instances. Make sure that your company chooses the right cloud storage that aligns well and is a right fit based on your business requirements.
- Improves employees productivity and performance
When engineers or developers do not need to deal with a lot of features to optimize, they can easily focus on their main role. Implementing cloud cost optimization can free up the DevOps teams from constantly putting out fires, taking much of their time. Cloud optimization lets you spend most of the time and skills on the right task to mitigate risks and ensure that your services and applications perform well in the cloud.
- Provides deep insights and visibility
A robust cloud cost optimization strategy affects the overall business performance by bringing more visibility. Cloud expenditures are structured and monitored efficiently to detect unused resources and scale the cost ratio for your business. Cloud cost optimization discovers the underutilized features, resources, and mismanaged tools. Deep insights and visibility reduce unnecessary cloud costs while optimizing cloud utilization. Cloud cost optimization does not only reduce cost but also balance between cost and performance.
- Allocate budget efficiently
Cloud cost optimization eliminates the major roadblocks, such as untagged costs, shared resources, etc. It gives a cohesive view and accurate information about business units, cost centers, products, and roles. With such robust financial information, it becomes easier for organizations to map their budget and resources accurately. It gives businesses the power to analyze billing data and the ability to chargeback by managing resources efficiently.
Best practices implementation
Cloud cost optimization provides businesses to apply best practices, such as security, visibility, and accountability. A good cloud optimization process gives organizations the ability to reduce resource wastage, identify risks, plan future strategies efficiently, reduce spending on the cloud, and forecast costs and resource requirements.
Cloud cost optimization is not a process that can happen overnight. However, it can be introduced and optimized over time. Cloud computing has a lot of potentials, but organizations should pay attention to cost optimization to take full advantage. It's not a complicated task but requires a disciplined approach to establish good rightsizing habits and drive insights and action using analytics to lower cloud costs.