Contrary to what most people believe, being in the ‘cloud’ does not mean that you are saving money. As a matter of fact, many companies are aiming to optimize cloud costs in 2022.
About 61% of companies planned to reduce cloud costs in 2021, according to a State of the Cloud report by Flexera. The report also revealed that 30% of the cloud spending of these companies goes to waste.
Similarly, a McKinsey report revealed that over 80% of companies are experiencing cloud cost optimization issues. In this article, you’ll discover the top cloud cost optimization issues that companies are facing and how to fix them.
What are Different Types of Cloud Computing Services?
Cloud computing services are classified into four broad categories, namely platform as a service (PaaS), infrastructure as a service (Iaas), software as a service (SaaS), and serverless.
Platform as a Service (PaaS)
These cloud computing services are designed to facilitate the development of web and mobile apps. PaaS provides the underlying infrastructure of databases, networks, storage, and servers to help developers quickly build all types of apps.
Infrastructure as a Service (IaaS)
IaaS provides IT infrastructure that includes storage, operating systems, virtual machines, and servers.
Software as a service (SaaS)
SaaS facilitates effective management and maintenance of the software application and underlying infrastructure. With SaaS, users can connect to the software application over the Internet with a web browser on their personal computer or phone.
Serverless computing overlaps with the platform as a service and focuses on app development without managing the underlying infrastructure. Serverless architectures only use resources when a specific function happens and are therefore highly scalable.
How to Deal with Cloud Cost Optimization Issues?
Cloud computing is used by thousands of tech-savvy businesses around the world, including
betFIRST casino that uses it for big data.
1. Getting Tempted by Startup Credits and Saving Plans.
Cloud computing providers offer impressive discounts to persuade customers to upgrade or opt for saving plans. As you have to commit to these plans for a few years, you won’t be able to meet your cloud cost reduction goals efficiently.
Similarly, many startups make the mistake of buying public cloud services with free credits. While they may feel like the credits are for free, they’ll end up paying the full amount for the credit in long-term usage.
Instead of opting for saving plans and reservations, use auto-scaling, resource scheduling, rightsizing, and other approaches to reduce cloud costs.
2. Delayed Execution of Automated Cloud Optimization
Cloud optimization significantly reduces businesses’ manual operations to select and assemble the right resources, configure virtual machines, create clusters, and so on.
The biggest reason for cloud cost waste is having more resources than what’s actually needed to facilitate the workloads. Companies can reduce dependence on over-provisioned resources by investing in rightsizing, customer monitoring, and cost management solutions, all of which help minimize cloud costs.
4. Inefficient Management of Demand Fluctuations
Cloud cost management solutions like automation provide many benefits, including reduced unnecessary expenses, efficient management of demand fluctuations, and freedom to choose app sizes and types.