Cloud Cost Optimization

Learn How to Optimize Your Cloud Infrastructure Costs

To reduce your cloud costs, you must first identify waste by uncovering inefficient use of cloud resources. Cloud cost optimization is not a once-and-done process, but you can immediately start saving money on your cloud infrastructure costs if you address seven key areas that account for the majority of wasted cloud spend and budget overruns.

Here’s how to cut cloud costs for immediate savings:

  1. Shut down idle or underutilized cloud instances
  2. Run dev instances only when needed (not 24x7)
  3. Leverage discount options
  4. Meet usage commitments
  5. Clean up unused storage
  6. Use less-expensive regions
  7. Upgrade from out-of-date instance families

To go beyond one-time fixes to monitor and fix inefficiencies on an ongoing basis, consider an automated cloud cost management and optimization solution that can help you:

  • Identify unused or underused cloud resources
  • Evaluate the most cost-effective regions and instance sizes
  • Identify the best discounting options based on your usage level
  • Manage your usage to leverage existing discounts
  • Implement budget controls to avoid surprises

The Challenge of Managing Cloud Costs

The value of cloud is in its on-demand nature, which frees up developers and IT to instantly gain access to resources to solve business problems. But at the same time, the lack of cloud cost optimization processes is resulting in significant waste in public cloud spend. RightScale has measured waste among enterprise cloud users and identified that, on average, 35 percent of cloud spend is wasted. This amounts to more than $10 billion in wasted cloud spend across just the top three public cloud providers (AWS, Microsoft Azure, and Google Cloud Platform).

cloud cost optimization

Best Practices for Cloud Cost Optimization

While the benefits of cloud are clear, the on-demand nature of cloud use often results in uncontrolled cloud costs, requiring a completely new approach to managing and optimizing spend. Legacy “pre-approval” processes used for on-premises data centers or outsourcing contracts can conflict with the “speed to market” benefits that cloud delivers. As a result, CIOs and enterprise IT organizations need to develop new approaches and processes to manage and optimize cloud costs.

In this video, we demonstrate key cloud cost management best practices using RightScale Optima, including how to:

  • Allocate cloud costs for showback and chargeback
  • Understand where your cloud spend is going
  • Reduce spend with cost savings recommendations
  • Set up reports and alerts to monitor costs

 

 

More Cloud Cost Optimization Resources