Many companies use the cloud these days. “The cloud” means cloud computing. Different companies make computer system resources available, and businesses pay accordingly.
You can get computing power and data storage through the cloud. You don’t do any direct managing, though, which makes this prospect so attractive. Clouds can function over multiple locations, each one a data center.
You can access servers over the internet and not physically maintain them. So many companies like this model, but it can also get expensive. Let’s discuss how you might enact some cloud cost optimization strategies that can keep your overall operational costs down.
Use Spot or Reserved Instances
You can always use on-demand resource alternatives. Spot instances or reserved instances in AWS might sound appealing.
Many tech companies talk about and implement AWS cost optimization best practices. For example, you might say that you’ll use AWS going forward. You might make a one, two, or three-year commitment and save money that way.
By doing so, you’re effectively locking into that system for a while. You might feel that’s a smart strategy, though. If you decide that AWS meets your needs, why not commit to that system and pay less? You can use the reserved instances discount program that way and save significantly.
Set Up Autoscaling
You can also set up autoscaling. By doing so, you’re effectively automating your cloud cost optimizations. You might use something like Microsoft Azure. You can use it and scale up or down resources, depending on what your business entity needs.
When you configure autoscaling within your cloud setup, you can pay the right amount every time you access a resource and no more. This Azure cost optimization tactic works well, but some in the tech community don’t do it.
If you do this, you won’t overprovision, which should save some cash. You’ll only scale when necessary, and you won’t let usage spikes bother you.
Have Rigid Rules and Policies in Place
Sometimes, having specific policies in place can save you money with cloud optimization. Your whole enterprise can help you with cost governance if you enforce these policies daily.
You can set up allowed VMs. You can also restrict any supercomputer or expensive VM use. You can define allowed storage types your workers can create on an account. You can also block resource creation that you feel isn’t absolutely necessary.
You Can Pause Idle Clusters
Let’s say you’re using a cloud data warehouse. You should at least consider pausing idle clusters when you are not using them. Maybe you’re running AWS Redshift clusters. When you’re doing that, you’re paying for computer node use.
You pay for that even when you’re not actively using your clusters. That doesn’t make much sense. Within Redshift, there’s pause functionality. You can resume only when you need that cluster. In the meantime, you’re saving money.
Monitor Your Computer Resources and Right-Size Your Infrastructure
You can proactively audit your cloud usage at any time. When you do so, you’ll likely find some waste areas. You can review all your idle and active instance types. Once you can list those and when you’re using them, you can better cut any waste areas.
You can refine your spending patterns with your IT department’s help. You can also consolidate your computer functions so that you’re using fewer instances. You can right-size your cloud infrastructure so that you are only using exactly what your business needs and nothing that it doesn’t.
Watch and Review Your Cloud’s Usage
You should look at your cloud usage regularly and not assume you’re using the same resources all the time. Think about your cloud’s usage like a utility bill. You don’t spend the same each month with those, and your cloud usage has that same fluctuation.
Your needs changing might alter your cloud usage, or you might notice some seasonality if you have a “busy time” each year. If you have the proper analytics and insights in place, you can modify your cloud usage accordingly.
When you can identify unused resources, you can cut them from your plan. You can stop overspending, better predict issues down the road, and monitor the real-time dashboards that you get with the cloud computing you’ve set up. Even if you’re not all that tech-savvy, you can usually learn about your cloud usage without much difficulty.
In these ways, you can reduce costs and use that money elsewhere within your company’s infrastructure where you need it more.
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