In a nutshell, cloud cost saving strategies can go a long way in ensuring your resources are utilized more efficiently, resulting in cost savings, and realizing the full potential of the Cloud while achieving financial efficiency.
Let us now look at the top 5 strategies to help cut own your cloud costs. 
There are also downsides to this approach which must be considered. Multi-cloud deployments help you avoid vendor lock-in and increase availability, but they can be expensive. With a single vendor, you can leverage discounts with large-volume purchases. Switching between different cloud platforms can be challenging and might require additional training or support.
For AWS, tools like AWS Cost Explorer and AWS Billing can help you visualize and analyze your costs. The Cloud Billing Reports and Cost Control suite can offer similar visibility on Google Cloud.
You might be tempted to save idle resources for busy periods or traffic spikes. However, you can leverage cloud features like auto-scaling, load balancing, and on-demand options to scale up capacity as needed.
By adopting a well-crafted cloud cost-savings strategy, the costs that are saved can be utilized for innovation and growth.

  1. Leverage reserved instances and savings plans: Reserved instances are a viable option for workloads with consistent and predictable resource requirements. Organizations can commit to a specific usage volume over a definite period in exchange for reduced charges through choices like Reserved Instances (RIs) and Savings Plans. With a one- or three-year commitment to a certain instance type, RIs offer discounts that can significantly help companies achieve cloud cost savings.

With the help of cloud cost monitoring, organizations can effectively allocate cloud resources to enhance efficiency and reduce costs by adjusting instance sizes, utilizing reserved instances, and optimizing storage utilization.

  1. Utilize cloud cost visibility platforms: The first step towards optimizing your cloud costs is understanding where your money is being spent. With a clear view of your cloud spending, any optimization efforts are sure to be well-spent. Leveraging cloud cost monitoring tools can provide invaluable insights into your spending patterns and resource utilization.

As the adoption of cloud increases in an organization because of its undeniable benefits, it brings forth another concern – that of escalating costs. In the absence of a solid plan to tackle these rising costs, the economic value of the Cloud can remain a distant dream. Without proactive measures, dealing with the rising costs can significantly affect the return on investments, hence, in this article, we delve into a set of comprehensive strategies tailored around cloud cost savings. By implementing these strategies, your organization can better understand the cloud ecosystem and align costs with business objectives, without losing performance or agility.
An effective cloud cost optimization strategy can ensure that not only costs but other factors like security, accessibility, infrastructure, compliance, etc. are also optimized, making your Cloud systems much more robust.

  1. Invest in a Cloud FinOps solution: Modern Cloud FinOps solutions have the capabilities to provide holistic management of an organization’s cloud infrastructure including budget management, cloud cost visibility, trend analysis, security, etc. Cloud financial management systems are designed to help users save money. Although the upfront costs associated with such a system are high, the long-term cloud cost savings outweigh the investment costs by a significant margin. It helps the users get a clear view of how they can better manage the resources and avoid wastage.
  1. Identify idle and unutilized resources: Organizations sometimes provision temporary servers and resources for certain tasks. Ideally, they must be deprovisioned after the job is finished. However, because of oversight, these resources continue incurring costs. These practices result in inflated AWS or Azure bills that charge for resources the organization purchased but no longer uses. Organizations can identify unused and unattached resources and remove them to cut down unnecessary expenses.Likewise, idle resources can also add to your cloud expenditure and make a dent in your budget. You can achieve cloud cost optimization by finding and consolidating idle computing resources. Cloud providers charge for idle resources, even if they are not in use. You can optimize costs by identifying and merging these resources to reduce costs. For example, if your CPU utilization is 10% but the provider charges for 100%, you are wasting a significant amount of computing resources.

Importance of cloud cost savings strategies

  1. Opt for a multi-cloud strategy: Each cloud service provider offers a unique set of benefits with its own advantages and disadvantages. By leveraging services from multiple clouds, you can reap the benefits of each of them.

Additionally, savings plans don’t require companies to commit in prior and can enjoy discounts across a wider range of instance types, sizes, and regions, giving better freedom and flexibility.
By Aman Aggarwal
The critical advantage that the multi-cloud approach offers is the potential for cost-saving opportunities. Each cloud service provider has its pricing models and rates for specific services. By comparing them, you can select the most cost-effective service for each provider. Additionally, a multi-cloud strategy can support risk management, provide increased flexibility, and prevent vendor lock-in.
Risks and balance: Cloud cost optimization is an exercise of delicate balance. Focusing too much on cost optimization without considering other factors like security etc., your cloud infrastructure might be exposed to risks and vulnerabilities. Similarly, if you rely too heavily on reserved instances and savings plans, then you might be trapped in long-term commitments without any exit path. There has to be a fine balance between optimization and other considerations so that your performance, security, and scalability don’t take a hit.
As mentioned earlier, cloud cost savings strategies are crucial for an organization to achieve financial profitability. While scaling on the Cloud, costs can spiral out of control. A tightly knit cost-saving strategy is essential for a balance between cloud spending and the value it derives.

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