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Without a doubt, the cloud has revolutionized a multitude of industries by providing scalable access to every business’ computing resources. As the demand for cloud adoption and migration continues to surge, its own set of challenges has also been exposed.
According to a recent report by Anodot, almost half of global businesses (49%) find it difficult to control cloud costs. Additionally, 54% of respondents cited a lack of visibility into cloud usage as their primary source of cloud waste. What’s more, 44% of executives believe that their company wastes at least one-third of their annual cloud spend.
To say that cloud cost management is a critical concern for businesses is a mere understatement. However, with the right strategies, tools, and company culture in place, organizations can optimize their cloud spending and reap its benefits without breaking the bank.
Here are three ways businesses can manage and optimize their cloud costs:
Consider Multi-Cloud and Hybrid Cloud Models
Multi-cloud and hybrid cloud solutions are parts of every organization’s efforts in cloud cost optimization. Whether utilizing multiple cloud providers or combining private and public cloud resources, companies have seen greater flexibility, scalability, and cost-effectiveness in these models compared to single-cloud solutions. In fact, a recent survey shows that 89% of companies apply a multi-cloud model, and 80% use hybrid cloud, proving that these approaches are the de facto standard.
One hack most organizations do is by using less expensive cloud resources for non-critical workloads. Leaders can rely on budget-friendly cloud resources for development and testing environments, and utilize more expensive providers for mission-critical applications that would require high-performance computing resources. By combining both models, organizations can save costs while ensuring that the right cloud resources are allocated based on each workload’s weight and importance.
Invest in Cloud Cost Optimization Tools
More often than not, it’s best to rely on tools specifically designed to control one’s out-of-control cloud costs rather than manually taking matters into one’s hands. For one, these tools provide a wide range of features and functionalities that can help businesses identify critical areas of waste and optimize their cloud spending. Moreover, some of the common features of cloud cost optimization tools include cost reporting, usage analytics, and cost forecasting.
The prime benefit of cloud cost optimization tools is their ability to automate cloud cost management processes, saving businesses time and resources. From automatically identifying and terminating unused resources to reducing unnecessary costs, progressive leaders know that investing in these cutting-edge solutions is vital. A good example is nOps, which can decrease a company’s AWS costs by up to 50% on auto-pilot. This means the vendor does the heavy lifting, and organizations can carry on with their usual operations without disruptions.
The nOps platform offers two main advantages for its customers. Firstly, they can reduce their costs without any financial risk, by paying only for what they use. Secondly, nOps automatically pauses idle resources, allowing customers to use less. Moreover, it is fully automated and does not require any engineering effort from the company. They only have to pay if nOps saves them money.
Educate Employees
Ultimately, it’s paramount to involve an organization’s people in cloud cost optimization efforts. As a company’s biggest asset, the people play a crucial role in managing costs as they are the ones using cloud resources on a day-to-day basis. Hence, it is essential to educate employees about the importance of cost optimization and how they can contribute to managing cloud costs effectively.
Conducting training sessions and workshops that focus on cloud best practices is key. Leaders can cover a myriad of topics, such as how to monitor cloud usage, how to identify areas of waste, and how to optimize cloud resources for cost savings. By equipping employees with the necessary knowledge and skills, businesses can empower them to use cloud resources efficiently and contribute to cost optimization efforts. What’s more, implementing a company-wide culture of cost awareness is vital as it can foster a sense of responsibility among employees.
