Cloud Cost Optimization – Four Strategies to Manage Cloud Spending

Cloud Cost Optimization – Four Strategies to Manage Cloud
Cloud computing expenses can escalate in a variety of ways over time, but by being proactive about managing investments, organizations can prevent costly surprises and instead, focus on providing the features that users need.

According to the Gartner research “6 Ways Cloud Migration Costs Go Off the Rails,” 60% of cloud expenses of all infrastructure and operations leaders will surpass their budget by 2024. Businesses want to get the most bang for their buck when it comes to cloud expenditures, therefore optimizing cloud service costs is critical to maximizing their return on investment.

Here are four strategies that businesses may take to reduce cloud infrastructure expenditures.

Leverage cloud data lifecycle policies

What if enterprise data needs to be stored in a standard storage class at times but not at others? Data lifecycle policies can help here. Businesses can build policies that automatically migrate data from one storage class to another on most major public clouds. These policies help save money by ensuring that data is not kept in a higher-cost class for longer than necessary.

If, for example, there is log data that is initially needed to be kept accessible in case teams need to refer to it for troubleshooting purposes, lifecycle policies are a wonderful approach to reduce cloud storage costs. A lifecycle policy can be leveraged to automatically shift logs to a lower-cost tier as they get older and less likely to be needed.

Don’t save any more data than is absolutely necessary

Businesses can reduce cloud storage costs by only storing data in the cloud when it is absolutely necessary. Given how simple it is to upload data to the cloud—and how difficult it is to maintain track of it once it’s there—companies may unintentionally end up with bloated cloud environments full of data they no longer need or that should be relocated back on-premises.

Enterprises must ensure that they fully understand the architecture of their cloud storage strategy and that they know where their data is stored to protect themselves from risks like these. They can also mark data and make it easier to find by using the tagging features incorporated into most cloud storage systems. For example, if they need to store some data for a specific period of time for compliance reasons, they can label it with tags and then delete it once the required retention term has passed.

Also Read: Cloud Budgets 2022 – Four Strategies for Keeping the Cloud Spend Under Control

Ascertain that teams are responsible for their costs

Understanding how every department or team member interacts with the rest of the organization makes it easier to hold teams accountable for their cloud spending. Giving teams some context is one of the best ways to support efficient cloud utilization. It’s critical to assist them in understanding what resources they’re using and how they’re using them. This visibility encourages teams to be more efficient in their cloud usage. Otherwise, they’ll have no way of knowing if they’re using more than is necessary.

Nobody has an incentive to wisely use cloud resources. No one knows how their use compares to others if each team deploys into the same cluster without using tags, labels, or some other mechanism of tracking who is consuming particular resources. Furthermore, if everyone deploys to the same cluster, enterprises will struggle to find space for new projects without sacrificing old ones. Enterprises can better manage their overall expenditures by tracing resource utilization to specific teams and deployments.

Use third-party solutions

Cloud cost management tools from third parties can help businesses get the most out of their cloud investment. These solutions offer a single-screen view of the whole infrastructure, including multicloud deployment, and either provide or integrate with tools for more comprehensive resource provisioning control. They also keep track of prices in real time and send out alerts when infrastructure usage surpasses pre-determined thresholds.

Many of these platforms also include AI-powered tools for flagging cloud services that are over-provisioned based on previous consumption patterns, which can help companies detect and reduce wasteful spending.

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Prangya Pandab is an Associate Editor with OnDot Media. She is a seasoned journalist with almost seven years of experience in the business news sector. Before joining ODM, she was a journalist with CNBC-TV18 for four years. She also had a brief stint with an infrastructure finance company working for their communications and branding vertical.