In some cases, companies find that their monthly cloud bills are larger than anticipated. While they may be satisfied with the operational advantages of the cloud, most organizations would like to trim their costs while maintaining a high level of functionality. Fortunately, there are some tactics they can use to control the costs of cloud computing.
Tips to Control Cloud Costs
The following tips can help an organization save a considerable amount on its monthly cloud bill. Not all are appropriate for every company, but at least some of these methods should be available to any organization using cloud computing.
Practice capacity planning
Companies need to engage in effective capacity planning when considering cloud migration. They need to ensure they have enough capacity to address traffic fluctuations without spending unnecessarily on idle resources. The unique requirements of an organization need to be addressed when contracting for cloud instances. A company should have a good idea of the amount of resources it will consume before beginning negotiations with a cloud provider.
Effectively manage cloud resources
Related to the capacity planning done before moving to the cloud is the effective management of computing resources after the move is complete. Teams can easily provision new virtual machines to facilitate testing and development. They may be forgotten when their usefulness is done and continue to incur charges from the vendor even when idle.
Similar issues may be faced with software licenses. Companies need to remain vigilant and verify they are using the resources and licenses they pay for every month.
Select the right storage solutions
All major CSPs offer multiple storage tiers that address a company’s varying data access needs. More expensive options make information accessible on-demand when necessary while economical alternatives are available for long-term archiving of little-used data. Companies should evaluate their needs carefully and select a mix of cloud storage tiers that address requirements while controlling costs.
Use reserved instances intelligently
The flexibility that attracts many organizations to the cloud comes with a price. There are less expensive alternatives to on-demand computing and storage solutions. Major CSPs offer reserved instances that offer substantial discounts to companies that can make a long-term commitment when signing a contract.
When reserved instances fit with business objectives, they can offer a path to significant cost reductions. A potential issue with reserved instances is that companies may be locked into paying for excessive resources if requirements change. Taking an intelligent approach with reserved instances can save money while still enabling fluctuating requirements to be addressed effectively.
Control cloud sprawl
It’s easy for employees to contribute to cloud sprawl by using unapproved solutions offered by a CSP. In addition to the potential security vulnerabilities associated with this practice, the costs of these cloud resources are reflected in bigger bills than expected. Effective management should incorporate regular verifications of cloud bills to identify services that have been obtained outside of corporate approval channels so they can be eliminated.
Taking the measures discussed above can help companies control cloud computing costs. As an organization’s objectives or requirements evolve, they should regularly revisit these items to ensure they optimize their cloud spending.