10 Reasons to Consider Cloud Cost Optimization Service
Many companies find cloud services incredibly profitable. Clouds offer numerous benefits, including eliminating the need to build, maintain, and secure a large-scale IT infrastructure. Businesses may also grow and modify their operations with such solutions.
Every year, the cloud services market expands at a rapid pace. Statista predicts this industry reaching 482 billion dollars in 2022, compared to cloud costs of 243 billion dollars in 2019. Companies have begun to consider all possible cloud cost optimization tools as expenses continue to rise.
We’ll talk about cloud cost optimization and why it’s so relevant in this article.
Cloud Optimization and Its Necessity for Businesses
Cloud optimization is the strategy of reducing cloud resource waste by assessing and allocating the computing power you need for specific cloud operations. However, resource management is not the only use of optimization.
Optimization will serve a specific objective for each company, such as lowering needless financial expenditures or enhancing corporate efficiency. Thorough cloud cost optimization strategies make it simple to spot flaws and manage resources as effectively as possible.
Unnecessary expenses in IT projects are not a new thing, and cloud solutions are no exception. Company owners claim that roughly 30% of their cloud budget is wasted. The reality is that the cloud necessitates administration to avoid scenarios when resources are purchased in excess. And according to Statista, managing cloud computing costs is one of the most prevalent problems among companies. As a result, cost optimization will not only affect the adoption of cloud services, but it will become a necessity.
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Why Businesses Choose Cloud Cost Optimization Services: 10 Reasons
Cloud spend optimization can significantly impact business development, and it’s not just about saving money. Companies choose these solutions for several more reasons. We’ll tell you all about them.
- Begin by saving money. It is the primary reason for cloud optimization. As we have already mentioned, companies waste a significant part of their budget since they don’t use all the cloud capacity. And thanks to optimization and careful analysis of the necessary resources, you can buy as much space as needed. Or you may hire cloud solution architect to help with your business processes setup.
- Quick scaling without needless expenses. Cloud services provide your company the flexibility to extend its operating capabilities at any moment. It works in the opposite direction as well. Businesses can also reduce cloud expenditures by selecting instances that best suit their current needs.
- Cloud optimization has a favorable impact on visibility. Visibility is one of the reasons why businesses may use a cloud cost optimization service. What does it imply? Visibility means comprehending the internal dynamics of the cloud architecture. Companies may assess how they use the cloud through optimization, and it also helps to identify frequently used tools. It is necessary to reserve the needed cloud capacities in advance.
- Companies are looking to increase productivity. The impact of cloud optimization on productivity is significant. It is a natural result of maximizing resource use while lowering financial expenditures.
- Use just what you need, and make most of it. AWS and Microsoft Azure, for example, have a lot of capabilities and are continually improving their products. However, you may not require all of the functionality listed. You can optimize cloud cost by deciding which tools your company does not utilize and only using what you need.
- Companies aspire to boost their engineers’ performance. Choosing only the tools, features, and solutions you need to operate your business is at the heart of cloud service optimization. You considerably aid the development team’s efforts by reducing redundant services. After all, network infrastructure engineer will concentrate on the essential tasks in this way.
- Reduce security risks. What is the danger it poses? The workflow will suffer if there is no proper cloud management. Employees may start using illegal software if cloud functionality is insufficient, putting your cybersecurity at risk. Instead, your workers won’t need third-party apps once the cloud has all the essential functionality.
- Companies are taking a serverless computing course. Many cloud service providers offer features that allow executing code in a serverless environment. We may consider serverless computing as an example of cloud optimization. It is especially relevant now that this technology is becoming more widespread.
- Businesses need to have a clear cloud management strategy. It is another reason why companies are turning to cloud cost optimization services. As a result of such solutions, work becomes as transparent as possible, making cloud management more efficient.
- Use services of several cloud providers. When a business uses multiple cloud environments, cost optimization is a must. When you compare pricing models and analyze the utilization of resources in each cloud, you may discover a medium ground in terms of cost-effectiveness and productivity.
Benefits of Cloud Cost Optimization
There are many reasons why companies are migrating to cloud services. And this is not surprising since the cost optimization cloud approach has many advantages. Here are the main ones:
- Significant savings;
- Correct and complete use of cloud resources;
- Transparent picture of all processes occurring in the cloud – visibility;
- Increase the productivity of engineers and business in general;
- Improving data security;
- Managing the cloud effortlessly;
- Opportunity to implement innovative solutions.
Strategies for Effective Cloud Cost Optimization
The answer to cloud management success isn’t merely getting rid of inefficient and idle resources. When deciding on the ideal strategy, you must consider your company’s demands. It’s essential since some businesses may need conventional solutions while others require more customization.
We’ll explain what to look for when it comes to cloud cost optimization.
- Step 1. Choose your vendors.
Bringing together parties and a professional team is essential for a comprehensive cloud optimization strategy. Product owners, managers, finance personnel, DevOps engineers, and, in certain situations, the cloud center of excellence are examples of such parties.
- Step 2. Select a pricing plan.
Cloud service providers typically give two payment options: allocation-based and consumption-based. In the first case, the supplier will withdraw payments regardless of whether you have utilized all the offered services. Another payment model, on the other hand, indicates that you pay only for the services used.
- Step 3. Define resources.
Cloud service providers present native tools that allow you to figure out what resources you’ll require. However, they may not be sufficient. Therefore, we advise companies to implement a tagging strategy for effective resource management.
- Step 4. Choose your governance model.
There are two types of governance models: in-the-way and on-the-side.
The first approach involves a centralized IT department controlling the cloud and keeping it invisible to other departments. On-the-side governance allows all employees to interact with and control cloud resources. The second approach is more flexible, while the first makes autonomy impossible.
- Step 5. Boost accountability.
Businesses can enhance accountability by providing employees with efficient reporting tools. For example, you can track how changes affect your company’s productivity, as well as the difference between projected and actual expenses.
- Step 6. Set up notifications for any anomalies.
This technique aims to automate some of the cloud-based activities. If your resources change unexpectedly, you can set up notifications.
- Step 7. Eliminate any resources that are no longer in use.
Each organization determines what resources are unnecessary for them. You may start deactivating such services or tools after the company has concluded it doesn’t require them in the cloud.
Cloud Optimization of the Most Popular Cloud Providers
If you’re interested in transferring your company to the cloud environment, you should look into the most common options.
AWS (Amazon Web Services)
It was established in 2006 as a subsidiary of Amazon that provides cloud computing services. You can access cloud resources for free for a term of 12 months or with a paid membership. An AWS cloud infrastructure architect can use more than 200 different services and numerous features. AWS cloud cost optimization provides various payment options, such as Reserved Instances and EC2 Spot Instances.
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It is a product of Microsoft launched in 2008. You may use the Microsoft.NET Framework, Visual Studio, and other tools to create applications here. Azure cloud cost optimization implies the use of Reserved Instances, which is an obligation to utilize a virtual machine for one or three years in exchange for a discount of up to 72%. Another Azure cost optimization tool is the company’s Pricing Calculator.
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IBM is a globally recognized company that not only produces computer hardware and software and provides a secure and open cloud for general use. The IBM cloud architecture is a next-generation hybrid cloud platform that supports sophisticated data processing and artificial intelligence.
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It is the world’s largest network equipment manufacturer, assisting businesses in connecting and tracking devices, securing and optimizing activities, and calculating data. It is noteworthy that even though the company offers many cloud services, it does not engage in the IaaS segment.
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It is primarily a CRM system that allows cloud database management. The main Salesforce cloud products as part of CRM include Sales Cloud, Service Cloud, and Marketing Cloud. As for the cloud service, where you can order a subscription, the company provides Database.com.
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It is a whole set of cloud services from technology giant Google, hosted in the same infrastructure as Google Search or YouTube. Any Google Cloud developer may apply management tools and services like computing, storage, data analysis, machine learning, etc. By establishing the needed number of resources, Google Cloud cost optimization is simple for implementation.
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Even though all of the organizations listed above provide cloud services, optimizing each of them needs the help of a professional with relevant experience. DevOps experts are the ideal candidates to put up such systems.
Your Cloud Cost Optimization Is in Good Hands with Mobilunity
We are a Ukrainian IT company with 11 years of experience completing successful projects for over 40+ companies in various countries. Two hundred of our dedicated employees strive to develop and keep up to date with the newest innovations.
Our team includes top DevOps specialists who know how to optimize cloud costs. And we can also offer to hire Azure developers who work part-time and can audit the existing cloud infrastructure. Our experts will, of course, prioritize your cloud services cost-effectiveness.