Today, consumers decide the way how businesses strategize their products and services. While meeting their emerging needs is vital, striking the right balance between cost control and consumption is the cornerstone of continued success. The new technology paradigm is driving businesses to adopt cloud computing that unifies enterprise applications to achieve cost-optimized workflows. With the cloud, managing IT infrastructure becomes less of a hassle for enterprises with automated operations and pay-as-you-go pricing models.
This blog presents 4 best practices that can help your business yield maximum output from the cloud-based model.
Most businesses operating in the market are unsure about how to effectively manage their cloud spending. A report by Gartner shows that around 60% of cloud costs are wasted, which accounts for a staggering $14.1 billion annually. Cloud cost optimization or simply cloud management is the correct selection and allocation of resources to applications running on an enterprise system. This channels a streamlined workload that enables companies to maintain equilibrium between spending and improving the value of cloud tools to build a best-fit infrastructure.
With companies investing more and more in cloud computing, now is a good time to reassess your business priorities. When we talk about cutting on cloud waste, trading value for the sake of cost might not sound like a good idea. That being said, it is important to create the right balance between cost reduction and optimizing business value. Here are some effective ways to get started with cloud cost optimization.
Cloud-based services can offer a wide array of features that businesses can utilize. While creating resources and assigning them to applications can increase performance, the cost could get out of control quickly. Disengaging unattached resources no longer used by developers is one of the key metrics of cloud optimization. Keeping an eye on simple implications like unused cloud resources, and switching down services during off-hours can save a good amount of business costs.
Cloud service providers typically offer a free trial of services that can save you two to three weeks of business costs. Apart from that, most vendors also provide substantial discounts on purchasing commitment plans for more than one year. The promotional offers vary depending upon the size of the business, nature of services, the set of cloud features, operating market, and regional factors. These could come in quite handy for optimizing cloud costs, especially when you are looking to either scale up your existing infrastructure or plan a complete migration to the cloud.
Spot instances can offer great value for money when it comes to cloud spend optimization. A survey by IDC indicates that businesses can save nearly $4.85 million in 5 years by incorporating spot instances in their operating models. Enterprises could realize as much as 90% cost savings on cloud spending, enabling them to amplify performance for flexible applications. While spot instances are purpose-built to cater to the customer surge, they drive usage at a massive discount to businesses by offering them the excess capacity for a limited time.
However, as compared to on-demand instances, spot instances can terminate with a near-real-time warning, which can compromise reliability. If your business applications are not fault-tolerant, this could bring more harm than good, so choose wisely.
With the cloud, you decide when to scale up and when to downgrade your computing power. Automatic scaling allows enterprises to maximize throughput when the customer demand is high, and utilize lesser resources during times when engagement subsides. Scaling cloud computing makes the system prepared for any unforeseen spike that could provoke it to malfunction or crash. At the same time, intelligent scaling reduces cloud costs by moderating resources as a response to low demand. This ultimately maximizes business ROI since business applications perform effectively in a unified ecosystem.
In the age of high-end digitization, the cloud is flourishing and for all the right reasons. Given the amount of versatility and convenience it offers, companies are willing to explore new avenues in customer engagement and optimal resource utilization by adopting seamless cloud services. Paying the right amount of attention to your business needs and infrastructure can help you define the perfect cloud cost optimization strategy that can greatly accelerate business growth. While leveraging content delivery networks is important, compressing data is also essential to utilizing cloud storage effectively. It all boils down to how well you align your consumption pattern with scheduling the right instances.
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