According to one study, costs for being in the cloud are the #1 challenge, even above security, being faced right now. The issue is highly concentrated in the enterprise market with over 80% saying it's their top priority versus only 47% of SMBs responding similarly. Flexera’s latest report says overruns are around 18% of the budget.
To make things worse, most are expecting that the overrun will grow to 20% in the next 12 months (that number includes the 18% already accounted for). Based on some estimates that could be as much as $97B in overspend (global cloud computing market in 2022 was roughly $483B).
While some may decide to simply adjust budgets to the "new norm", there are ways that you can help trim the spending.
Establishing clear policies regarding who can authorize cloud spending is essential. It's important to limit the number of people who can approve new resources or modifications to prevent unauthorized or excessive spending. Additionally, automated monitoring can help you track usage and spending patterns, allowing you to proactively identify potential cost overruns and take corrective action.
Automating resource retirement or de-scaling based on usage is a game changer for most organizations.
Utilize Multi-cloud Strategies
Leverage multiple cloud providers to take advantage of each provider's unique strengths and cost advantages. Each cloud provider has different pricing models, features, and services that cater to various use cases. By using a multi-cloud strategy, you can choose the best provider for your specific needs, potentially leading to cost savings and increased performance.
Regularly Optimize Your Infrastructure
Conduct periodic assessments to identify where your cloud spend is going and seek opportunities for optimization. This can include:
Right-sizing: Ensure that you are using the appropriate instance types and sizes for your workloads. Over-provisioning resources can lead to unnecessary spending, while under-provisioning can affect performance.
Reserved Instances and Savings Plans: Make use of reserved instances and savings plans where applicable. These can help you save money on long-term, predictable workloads.
Eliminate Unused Resources: Regularly review and decommission unused or underutilized resources to avoid paying for idle capacity.
Auto-scaling: Implement auto-scaling to dynamically adjust resources based on demand, helping you maintain a balance between performance and cost.
Re-architect for Cloud-native
If possible, re-architect your applications and infrastructure to be cloud-native. This can help you take full advantage of the cloud's scalability, elasticity, and performance, while also reducing costs. Some aspects of cloud-native architecture include:
Microservices: Break down monolithic applications into smaller, independent services, allowing for easier scaling and management.
Containerization: Utilize containers to package and deploy applications, enabling more efficient resource usage and faster deployment times.
Serverless: Leverage serverless architectures to minimize operational overhead and only pay for the computer resources you actually use.
By implementing these strategies, you can better manage your cloud infrastructure costs and ensure that you are optimizing your resources for both performance and budget.
Are you ready to optimize your cloud infrastructure and reduce your cloud spending? At Improving, we have a team of cloud architecture experts with a proven track record of helping businesses just like yours navigate the complexities of cloud cost management.
Don't wait any longer to start reaping the benefits of efficient cloud practices. Partner with Improving today and let us:
Implement and enforce robust policies to regulate your cloud spending.
Develop a tailored multi-cloud strategy to leverage the strengths of different providers and maximize cost savings.
Perform an assessment to identify areas of optimization and streamline your cloud infrastructure.
Re-architect your applications and infrastructure for cloud-native, taking full advantage of scalability, elasticity, and performance.
It's time to transform your cloud strategy and position your business for success. Reach out to us at Improving to schedule a consultation with our team of experts. Together, we can help you take control of your cloud spending, optimize your infrastructure, and drive your business forward.
Contact us to get started.