The IT industry is faced with a lot of changes after the Covid 19 pandemic. Now, every company is migrating to the cloud because of its benefits. Cloud infrastructure is available to everyone, from small businesses to large enterprises. Since the whole idea of a business is to grow, it is important to plan what can happen once your company starts to grow. Meaning you will need to optimize cloud costs.
The objective of cloud cost optimization is to find ways of using the cloud to provide value to the business at the lowest possible cost, while utilizing cloud providers as efficiently as possible.
What is cloud cost optimization?
Cloud cost optimization ensures that the most appropriate and cost-efficient resources are allocated to each workload or application. The objective is to ensure that cloud investments meet the company’s requirements in terms of performance, cost, compliance and security.
Simply put, cloud cost optimization aims to lower your costs for cloud technology usage, so you only pay for what you use.
One of the advantages of using cloud computing is that it offers organizations unlimited options and lower costs. This is because it only charges for the resources you are using.
Optimization means having the same performance while reducing costs. And because cloud optimization is dynamic and changes happen rapidly, it’s important to have detailed analytics and automated tools for cloud cost optimization.
At Accrets, you may choose to pay on a periodic basis, as an operating expense. Which is a great advantage because your costs may be adjusted accordingly to cater to your needs and demands changes as your business grows. Sometimes you will no longer need the same services or you will need to renew or add new ones.
Most of cloud networking fees are applied based on the data you move, your geographical location or the services you are using.
Moving Data
There is typically a fee that public cloud providers charge when you move data in and out of the cloud. Many users are concerned with this unpredictable variable cost according to amount of data transmitted.
However, Accrets’ Private Cloud subscription does not charge separately for data uploads or downloads. We charge a fixed price rate based on bandwidth subscribed.
Transferring data between internal network zones can also attract cost charges in public clouds.
For Accrets Private Cloud, we do not charge for internal zone transfers within our cloud, which means you can enjoy unlimited Data Transfer within our cloud services without worrying about costs.
Geographical Location
Geographical location is a factor that should be considered when focusing on saving actual network costs. Different regions have different prices, therefore your company can be charged differently.
High-performance needs
Depending on your company’s needs, you may opt to use a cloud provider that offers access to a public cloud infrastructure that can be connected to your private cloud. This allows your company to optimize costs by residing regularly used computing resources on private cloud, while residing occasional burst workloads on public cloud.
With this hybrid cloud strategy, companies will have to consider cost optimized connections between their private cloud and public cloud resources,
Teridion provides high-security WAN connectivity solutions for such use case
Teridion’s WAN service is built on the networks of over 25 cloud providers worldwide. Including AWS, Microsoft Azure, Google Cloud Platform, IBM, and many others.
Teridion For Enterprise enables low-cost broadband access. By using deep learning capabilities to orchestrate the best route for maximum acceleration, minimal packet delivery latency, and packet loss mitigation. Teridion radically improves speed and throughput worldwide vs regular public Internet performance through their proven overlay network and WAN accelerator.
What are the best practices for managing cloud costs?
An effective cloud cost optimization strategy should aim to reduce overall spending by eliminating waste, identifying mismanaged resources and scaling services to the right size.
Following are some best practices for effective cloud cost optimization:
1. Know what resources you are not using
This is one of the easiest ways to optimize cloud costs effectively. Some of the common oversights that increase cloud costs are:
- Having a temporary server for a single-use and not turning it off after
- Not removing storage when a process finishes.
Identifying such problems can help reduce cloud costs and benefit any organization.
2. Spot non-active resources
Most of the time cloud providers charge for idle resources that are not being used at all the time but just stay idle. An example of this is CPU utilization. Your company can pay for 100% usage of operation, but you are only using 10% of what you paid. This is one of the classic cases of resources being wasted. It’s important you don’t let any idle resources in your system.
3. Using the right size for the resources
This process refers to the analysis of a computing service to determine the right size for your operation requests. With right-sizing tools, you optimize not only the server size but also elements like database, storage, graphics, memory, etc.
Conclusion
Investing in a cloud optimization strategy can help ensure that your migration to the cloud pays off almost right away and in the long run.
Optimizing cloud processes will help companies see more cloud benefits. Such as reducing cloud costs, improving engineers’ productivity and moving more processes to the cloud.
Cloud optimization enables teams to spot cost and price per unit, process, department, customer, segment, or product. Therefore, they can make cost-aware cloud utilization decisions in the future based on what they learn, rather than waiting for the finance department to decide what to do.
The goal of cloud optimization is to identify ways to eliminate unnecessary weight from your systems. In addition, you can use it to find the bare minimum cloud services you need. As a result, you can find a cheaper, faster and leaner way to accomplish the same goals.
Cloud optimization brings about a cultural shift that allows teams to make effective decisions based on their experience. This leads to an organization that has multiple teams that can utilize cloud resources.
