Cloud Cost Optimization
Few fully realize the expected benefits and many challenges of cloud migration
Why is cloud optimization important
Cloud cost management is a challenge for most businesses. According to a survey by Flexera, 59% of organizations have exceeded their cloud budgets, and 42% of those cited unexpected costs as the reason. Given the prevalence of cloud over-spending, we have established a list of steps to take to get on top of cloud cost management:
- Rightsize computing capacity
- Switch to reserved instances
- Delete unwanted snapshots / auto-scaling
- Close down instances not in use
- Migrate to on-demand desktops
Rightsize computing capacity
We regularly see many virtual server instances running that are larger than required. By analyzing usage data and implementing automation tools, we are able to right-size instances to better match projected workloads. This results in significant cost savings without sacrificing performance.
Switch to reserved instances
We find many of our customers are paying a premium for the flexibility of on-demand data storage and cloud instances. By evaluating mid- to long-term needs, we can recommend reserved instances in many cases. A Reserved Instance is rented for a fixed duration at a discount on the base price of an on demand instance. Customers are able to switch to reserved instances and save up to 75% on their compute costs.
Delete unwanted snapshots and implementing auto-scaling
Many clients have unnecessary snapshots of virtual machines, utilizing storage space and adding to the monthly bill. We are able to reduce storage costs through a snapshot retention plan and automated removal of surplus / not required snapshots. Through auto-scaling, we allow the dynamic adjustment of computing resources based on demand. This improves performance and reduces costs by avoiding over-provisioning.
Close down instances when not in use
By performing a full usage review, we can identify instances required only during specific hours - for example during business hours. By implementing a schedule to automatically shut down non-critical instances while not in use, businesses are able to reduce computing costs by up to 30%. This is a simple yet effective way to optimize cloud usage and reduce costs.
Moving to on-demand desktops with auto-shutdown
We often find customer desktop services are contributing to their elevated cloud costs. Using virtual desktop infrastructure (VDI) that run continuously even when users are not actively using their desktops introduces additional financial burn cycles. On-demand desktops with auto-shutdown capabilities presents additional opportunities to reduce desktop services costs by up to 50%. This allows better alignment of costs with actual usage without sacrificing the flexibility and functionality users require.
According to a McKinsey report, around 80% of enterprises consider managing cloud spend a challenge. The ease of provisioning in the cloud means organizations move more quickly while cost management generally takes a back seat. As Flexera noted, organizations waste an average of about 35% of their cloud spend.
Floswitch can help you recoup this 35% while improving cloud performance. Let's get started.
Book a call today with one of our cloud optimization team
Each cloud deployment brings different challenges, however common issues exist across each that if tackled correctly, can deliver not only streamlined topology, but can form part of an effective cost reduction exercise.
Book some time for us to discuss your particular business need. We’ll work with you and your team to learn more about your project or team needs and match you to the perfect talent and resources.
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