With cloud technology, organisations can leapfrog years of technological progress. About 70% of businesses already use cloud technology in some capacity. Businesses are using cloud technology to drive efficiency, enhance customer service, and reduce costs. But simply transitioning to the cloud doesn’t maximise cost savings. 70% of companies that move to the cloud are not aware of the hidden cloud costs. Reports reveal that organisations can save almost 35% of cloud costs. To derive maximum value from cloud services it is important to assess its cost-to-benefit ratio. Cloud computing is only beneficial to an organisation when its benefits outweigh the costs. An effective cloud cost optimization strategy can help organisations to maximise gains and reduce costs.
Here are the best practices for cloud cost optimization:
Monitor resource utilisation: Selecting incorrect instance sizes or letting cloud resources idle can take up unwanted space and inflate cloud costs. Users need to carefully select the right instance size based on the workload or business requirements and monitor resource utilisation.
Review and resize resources: Cloud computing gives organisations the flexibility to upscale or downscale resource allocations as per requirements. Reduce operational costs by only buying what you need instead of spending capital on spare capacity. Regular review helps ascertain usage and re-size as appropriate.
Switch off unused or unattached resources: Cloud customers pay for the resources they order, whether they utilise them or not. Often teams forget to turn off resources or remove storage attached to instances. An easy way to optimise cloud costs is to look for unused or unattached resources. A cloud cost optimization strategy should start by identifying unused and completely unattached resources and removing them.
Haptik, an enterprise conversational AI platform, saves at least 85% cost on EC2 instances using Elastigroup by Spot. Hapik uses many features on the Spot platform to improve performance while keeping costs down. This includes checking for idle resources like unused volumes, instances, etc., and releasing them to save costs.
MoEngage, an intelligent customer engagement platform, needed a comprehensive cloud monitoring solution to manage workloads. Real-time cloud optimizer Granulate suited MoEnage’s needs with a fully managed performance and cost optimization solution. Granulate’s plug-and-play solutions easily integrate with AWS services and in less than 5 minutes its agents were identifying bottlenecks and runtime levels. On activation, within seconds MoEngage was pleasantly surprised by the performance improvement they witnessed.
Deploying automation tools: Cloud technology companies offer cloud automation SaaS products that monitor and manage cloud platform services for organisations. By automating tasks such as backup, security, code deployment, resource allocation, they help with cloud cost optimization.
India’s largest learning platform, Unacademy had to deal with growing pains as its traffic skyrocketed resulting in a steadily escalating AWS bill. To keep cloud costs in check Unacademy used Spot, an industry-leading cloud monitoring and automation tool that has the potential to reduce cloud costs by 90%. Unacademy used Spot’s scheduled scaling tool to scale down during off-peak hours. According to Unacademy, Spot is ideal for fault-tolerant and resilient workloads. Using a strategic cloud cost optimization strategy, Unacademy was able to reduce cloud bills by 43%.
Comprehensive audits for clear insights: A comprehensive audit of utilisation patterns and workloads can help organisations assess requirements and gain control over cloud spend. Monetization platform for mobile publishers, Fyber turned to Granulate to help reduce cloud compute costs and increase application performance. Fyber experienced significant performance gains with a 17% reduction in the response time and 18% CPU utilisation all while dealing with 15% more throughput.
Cloud cost optimization does not have to be complicated. Choosing the right SaaS tools to help monitor operations can help lower cloud bills and enhance performance. If you are struggling with rising costs, our advisors can help you set up a robust cloud management strategy. Connect with us at siddhi@onnivation.in or through our website.
