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The Principles of Mastering Cloud Cost Optimization

Posted by Marbenz Antonio on October 13, 2022

Cloud Cost Optimization: The Ultimate Guide to Economize Your Cloud Spend - WebFreen

Why is it difficult to manage cloud cost?

Most businesses claim that flexibility and agility are the main forces behind cloud cost computing.

To put it another way, it enables you to quickly supply and de-provision resources by business requirements. The church doesn’t need to be finished in time for Sunday. Once in the cloud, almost 80% of businesses report having received bills that were two to three times more than expected. While the cloud promises that you only pay for what you use, in actuality you only pay for what you provision. The big and unexpected bills are brought on by the difference between allocation and use.

Cost is not the only difficulty. Although most organizations identify cost as their biggest challenge in operating a public cloud environment, performance and cost are actually inseparably connected. Moving all applications to the smallest instance type would be the best course of action if an organization were only interested in cost optimization; however, no one is ready to accept the performance cost.

Cost and performance are linked in the cloud more than before.

Enterprise IT teams are under a great deal of pressure as a result of digital transformation and the rush to the cloud. While cloud technology tackles a long-standing problem—that dynamic application demand surpasses static infrastructure supply—matching demand and supply in real-time across many metrics and dimensions takes more determinations than a person can make.

Estates for hybrid clouds are very complex. For EC2 instances alone, there are millions of configuration options. AWS offers 212 other goods and services, and Microsoft advertises more than 600 Azure services (as of May 2020). The typical IT team simply cannot handle this level of complexity, and as a result, many businesses that launched digital transformation efforts with great anticipation find that innovation stalls while the IT team battles to keep the lights on.

The looping cloud cost-reduction war-room ritual

The CFO of your company has just received a sizable cloud bill on the seventh of the month. Again, much earlier than anticipated or budgeted for, it has achieved an all-time high, as it has many times before.

Sounds familiar?

Almost every organization we are introduced to tells us the same tale. Sometimes the CIO must appear before the board and request a budget increase, but normally a committee is formed beforehand with the goal of lowering the bill. Most often, a portion of a newly formed “cloud governance” team as well as a few finance experts make up the team, which typically includes top cloud architects. In order to address the problem of cloud bills gone wrong, these top talents have been removed from their day jobs.

They grab a meeting space and make contact with the nearby pizza delivery person. To attempt and find ways to lower the amount, they lay out the hundreds of pages of their spreadsheets or cloud bills on the desk. They then make an effort to connect this data with data they get from several monitoring systems and discussions with application owners.

A few days later, a list of suggestions for reducing the cost to the desired level is given. These include suggestions for what components may be deleted, what should be rightsized, what might benefit from cheaper storage, what RIs should be bought, and more.

The majority of the advice is then followed, and the cloud charges gradually start to go down. Everyone feels relieved, and everything returns to normal. The team is separated, and everyone returns to their regular employment.

It’s the seventh day of the month once more, and the cloud bills are starting to rise slowly. It is a never-ending “break-fix” loop for cost optimization when the CFO phones, the team is reassembled, a new objective is set, a conference room is taken over, and pizza delivery begins.

Breaking the loop

So how do we escape this loop? by addressing the root cause rather than the symptom?

Cloud bills continue to rise as a result of our failure to consistently guarantee that the estate is optimized and our relapse into problematic behaviors.

The capacity to be flexible and nimble is increased by cloud platforms, but how can you fully benefit from them without drowning in onerous cloud costs?

Cloud environments are continuously optimized by assisting people in concentrating on what they do best—develop, create, and innovate—and letting software manage the complex resource and cost considerations. The rate of innovation is increasing, and cloud costs are constantly under control.

The principles of cost optimization

By continually ensuring that apps are receiving exactly the resources they require to meet their SLAs, as cost-effectively as possible, you can take advantage of the cloud’s promise that you only pay for what you use and keep the environment optimized.

To do that, the following core principle and skills are necessary:

  1. Multidimensional rightsizing with awareness of applications: Recognize which applications, whether they are running on IaaS, containers, or other services, use which underlying computing, storage, and network resources.
  2. Vertical and horizontal scale decisions in real-time: Recognize application SLAs and make sure resources are used as efficiently and effectively as possible while staying within the business’s defined constraints and policies.
  3. Identify unused resources and delete or suspend them: Always remove unnecessary items from the estate.
  4. Use the appropriate price models for your workloads: RIs, promo SKUs, spot instances, etc.
  5. Align with work cycles: Workloads should be scheduled to be suspended to ensure that while people aren’t utilizing them, they aren’t also paying for them.
  6. Automation and workflows: Instead of sporadic attempts, automate the actions and integrate optimization into the deployment and daily operation of estate management using real-time or schedules that meet changing windows. The best method for workloads requiring strict change control is approval workflow.

Here at CourseMonster, we know how hard it may be to find the right time and funds for training. We provide effective training programs that enable you to select the training option that best meets the demands of your company.

For more information, please get in touch with one of our course advisers today or contact us at training@coursemonster.com

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