Companies that have migrated their infrastructures to the cloud have realized the benefits of this solution but, along with that, faced a new challenge. Potential cost savings turn out to be imaginary if resources are misused. According to the 2021 report by Flexera, nearly a third of companies spend $12 million on cloud technologies, and organizations' cloud spending is growing by an average of 9-16% per year. In this article, we’ll figure out how to eliminate unnecessary expenses and reduce cloud costs.
The cloud is one of the best ways to build infrastructure and run a business. Participants in Accenture’s study noted that, by tapping into the cloud, they were able to reduce infrastructure costs in 45% of cases, increase operational efficiency in 53% of cases, and introduce new technologies (Big Data, IoT, ML) in 51% of cases.
Companies no longer have to buy expensive hardware or pay for setting up data centers. Computing operations are performed in the cloud instantly, data centers are regularly updated, and data is backed up.
Cloud security is trusted by about 74% of companies. Provider solutions include built-in mechanisms and sets of policies and technologies that improve data protection.
According to experts at Forbes, enterprises save between 30% and 50% by moving their infrastructures to the cloud. If so, why are the costs for cloud solutions increasing over time? According to data by FinOps, in 2020, $30 billion was spent on cloud computing in the US alone.
It's all about understanding the intricacies of cloud savings and the ways to achieve them. If a company has no DevOps specialists who know how to properly migrate infrastructure to the cloud and configure cloud cost management solutions, it won’t derive the benefits desired.
According to Flexera’s 2020 report, cloud cost reduction has become a priority for 73% of businesses. Organizations usually exceed their budget by an average of 23%.
How to inhibit the growth of cloud costs?
In order to see how much of your resources are spent on particular tasks, you need to control them - for example, by tagging cloud services.
Paying for cloud services means paying for the consumption of computing resources, starting and turning off machines automatically at a given time.
Paying for cloud services is usually usage-based. Some cloud service providers offer another payment option - a subscription for a specific period of time, which helps businesses save money if used correctly.
You don’t need to change your apps for using the above methods. Saving costs for the cloud is possible by adjusting the architecture and software code - for example, by using PaaS (Platform-as-a-Service), runtime and container management, and a serverless pay-per-execution environment instead of a virtual machine.
You can also use containers - small virtual machines. They contain microservices that are activated upon request and unloaded from virtual memory when no longer needed.
If a company wants to incorporate cloud cost reduction into its business plan, it should hire an expert on this subject - a DevOps Engineer. DevOps specialists plan, design, and implement cost-effective cloud infrastructure.
If a company has independently switched to the cloud, outsourcing DevOps experts will assess the costs for it and offer options for optimizing the budget.
Increasing profitability by reducing costs is an essential element of any business. This is achieved by moving infrastructure to the cloud. But a lack of time, hands, and experience leads to a loss of control over expenses. In order to maximize benefits, companies are advised to incorporate cloud cost reduction into their projects. Outsourcing DevOps specialists will ensure the efficient management of your cloud budget.