Cloud Cost Management

Understand How Much Cloud Is Costing You

Cloud cost management is the top cloud initiative for 2018, and yet enterprises are often unaware that they are wasting 35 percent of their cloud spend. Because control of cloud accounts is decentralized, many companies are challenged to pinpoint where waste is occurring and how to eliminate it on an ongoing basis. With RightScale Optima®, you can identify exactly how much you are spending and where and how you can eliminate waste.

Cloud Cost Management Wasted Cloud Spend

Cloud Cost Management

Key Areas Where You Can Cut Cloud Costs

Based on data from helping our customers optimize their cloud spend, we’ve found that:

  • Enterprises run instances 24x7: There is clear evidence that enterprises continue to run the majority of instances 24x7, which can be a source of waste. On average, we found only 31 percent variability between the highest and lowest number of instances running over a month. Enterprises should implement auto-scaling for production workloads as well as automated scheduling for development environments to run only during working hours or when needed.
  • Instances are over-provisioned: 39 percent of instance spend is on VMs that are running at under 40 percent of CPU and memory utilization, with the majority of those running under 20 percent utilization. This represents an opportunity to downsize and significantly reduce costs.
  • Enterprises don’t fully leverage discounts: Cloud providers offer discounts (AWS Reserved Instances, Azure Compute Pre-Purchase, Google Committed Use Discounts) for committing to certain usage levels. Among AWS users, we’ve found that only 19 percent of AWS instances are covered by Reserved Instances. Increasing Reserved Instance coverage will result in significant savings. RightScale advises customers on strategies for leveraging discounts, even when their instance usage may be changing.
  • Storage data is old: Many enterprises neglect to clean up storage that is no longer being used, resulting in 7 percent of all cloud spend wasted on unattached storage volumes and old snapshots.

“Cloud users are increasingly concerned about the money they might be wasting in their public cloud spending, but only a small percentage of them are doing something about it.”