We have found that there commonly is a better option for enterprises adopting cloud formally. Or another approach would be to make it part of audit and finance, since they ultimately influence the size of next year’s budget? Or should it live within IT as a shared service? This could be an important benefit of IT as a shared service where the best practices can be applied at a macro level. On one side of the debate, should Cloud Cost Optimization be the responsibility of the budget holder? After all, it is their money being wasted…in theory, they will have the biggest motivation to aggressively drive out cost. Within an enterprise, where should the responsibility for Cloud Cost Optimization live? This is where the debate gets very interesting to our crew.
#Billings pro to cloud migrate professional#
At the end of the day, outside of hiring a managed service or professional service provider that actually executes the changes to optimize (typically costing you an additional 15% of your cloud spend…), a report can only help you identify what to do…not do it for you.įinding a home for Cloud Cost Optimization to thrive The bad news is that the enterprise has to be judicious and committed to making the changes. The good news is that most of the tools above will help you find most of these 5 areas. Focusing on optimizing compute while ignoring storage and network hidden costs.
Failure to continue innovating the application setĦ. Not leveraging Reserved or Spot Instances where possible Oversizing Resources (storage, memory, instance sizing) Unused Virtual Machines (VM) and Storageģ. Research finds several major causes that led to waste in cloud deployments:ġ. The irony is that clients routinely underestimate their waste.who routinely survey their waste at closer to 15-25%. On average, for every $1 that is spent on cloud, over 1/3 is thrown away… No, that is not a joke, and to our experience, it is not wrong either. Right Scale, in its “State of the Cloud” 2018 report routinely finds 40%-50% cloud expense waste in surveyed companies. While it can be much more fun and exciting to talk about refactoring an application using the latest "sexy" platform tools, the reality is that there is much to achieve from a good cost optimization program. The irony about these different approaches is that clients see Cloud Cost Optimization as someone else's job. For example, the market has several Cloud Cost Optimization tools developed by both the Cloud Provider (Amazon Trusted Advisor, Microsoft Cloudyn) and third party cloud management tools (CloudGenera, CloudHealth, CloudCheckr, HyperGrid, etc.). Through the analysis, they find mis-sized and mis-configured elements (typically compute), along with other areas of waste and suggest corrective actions that will directly reduce monthly cloud billings.Ĭloud Cost Optimization comes in several varieties and focus areas, each with unique pros and cons. Today, clients tend to focus on Cloud Cost Optimization through one or more tools, usually a service supported by a tool (or tools) analyzes one or more cloud tenants.
Exploring how many enterprises look to put their cloud spend on a diet after adopting the public cloud and finds that many fall into a common trap as they look to build and execute a Cloud Cost Optimization initiative. Is Cloud Cost Optimization the Next Fad Diet? By Etienne Gadient
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