Cloud cost optimisation: A comprehensive guide to its benefits

These days, efficiency is key for any successful business. As the demand for cloud computing rises, so do expenses associated with deploying and running applications in public clouds like AWS, Google Cloud Platform, and Microsoft Azure. Many organisations struggle to take full advantage of the benefits that cloud technology has to offer due to excessive spending on infrastructure costs. Yet there is an easy solution: optimising your cloud cost performance by using effective strategies and best practices. Read on to learn more about how you can reduce your organisation’s operating costs while still taking full advantage of the potential offered by cloud computing technology!

Introducing FinOps and What It Does

As technology continues to transform the business landscape, new processes and strategies are emerging to help companies streamline their operations and achieve greater efficiency. One such approach gaining traction in recent years is FinOps – a practice that seeks to optimize cloud spending by giving companies greater visibility into their usage and costs. Essentially, FinOps brings together finance and operations teams to collaborate on cost management, using a combination of automation tools, cloud analytics, and industry best practices to identify cost savings opportunities and drive better decision-making. By embracing FinOps, companies can not only reduce wasteful spending, but also improve their overall cloud performance, security, and compliance. It’s a win-win for businesses looking to maximise their cloud investments in an ever-changing technological landscape.

Cost Optimisation in the Cloud

Cost optimisation in the cloud is a crucial factor in the success of any organisation’s cloud computing strategy. The cloud offers numerous benefits such as flexibility, scalability, and accessibility, but costs can easily spiral out of control if not managed effectively. A well-thought-out cost optimisation plan can help organisations achieve significant savings while still taking advantage of all the cloud has to offer. Such a plan requires constant monitoring and analysis of cloud computing usage across the organisation to identify areas where optimisation can be achieved. By carefully monitoring consumption patterns, organisations can identify areas where they can scale back or switch to more cost-effective solutions. In the end, cost optimisation should not be seen as an onerous task, but rather as an opportunity to leverage the full benefits of cloud computing while controlling costs.

Benefits of Cloud Cost Optimisation

The cloud has revolutionized the way businesses operate, providing countless advantages, from flexibility and scalability to security and accessibility. However, with these benefits comes the inevitable cost. This is where cloud cost optimisation comes in – allowing organisations to effectively manage their cloud spend and reduce unnecessary expenses. By optimizing cloud costs, companies can unlock significant savings, freeing up resources to drive innovation and growth. The benefits of cloud cost optimisation are numerous, but perhaps the most compelling is the ability it offers businesses to stay competitive in an ever-changing market. By minimizing expenditure, companies can maintain or even increase their innovation budgets, allowing them to explore new opportunities and remain agile in the face of emerging technologies. Ultimately, cloud cost optimisation is an essential component of any modern business strategy, offering organisations the opportunity to maximise their cloud investment and drive long-term success.

Identifying Ways to Reduce Cloud Costs

Organisations looking to reduce their cloud costs need to focus on both short-term and long-term strategies. In the short term, companies should look to optimise their current usage by scaling back or switching to more cost-effective solutions where possible. Additionally, they should consider leveraging automation tools and analytics platforms to monitor and analyse usage patterns in order to identify opportunities for cost savings.

In the long term, companies should focus on developing a comprehensive cloud cost optimisation plan that covers all aspects of their infrastructure and usage. This plan should include best practices such as setting up alerts to monitor costs, assessing multiple pricing plans to identify the most cost-effective solution, and leveraging automation tools to reduce manual tasks. By taking these steps, organisations can develop a comprehensive cloud cost optimisation strategy that will ensure long-term savings and improved performance.

Analyzing Your Cloud Spend

The first step in any cost optimisation plan is to analyze your cloud spend. This involves carefully monitoring usage patterns and analysing costs over time. To do this, organisations should leverage the many analytics tools available, such as AWS Cost Explorer and Cloudability, to gain insights into their cloud usage and identify areas where costs can be reduced. Additionally, companies should look at setting up alerts that will notify them of changes or anomalies in their usage patterns so they can quickly take action if needed. By taking these steps, companies can gain a better understanding of their current cloud expenditure and determine which areas need attention to achieve maximum savings.

Automating & Streamlining Your FinOps Processes

Once the data is gathered, organisations can begin to automate and streamline their FinOps processes. Automation tools such as AWS Cloud Formation and Terraform can be used to quickly and easily provision resources, while analytics platforms such as Cloudability offer detailed insights into cloud usage patterns. Additionally, companies should look at leveraging machine learning technologies to further optimise their processes and drive more effective decision-making. By embracing automation and streamlining their FinOps processes, organisations can reduce costs, improve efficiency, and remain agile in an ever-changing technological landscape.

How can Appstrato help?

Appstrato has a history of cloud cost management; from as early as 2014 staff in Appstrato were working with Microsoft on a  global SPLA (cloud services)  programme. We understand the detail of how to ensure quick wins but also how to implement long-term governance and controls. Founder and Principal Consultant Steven Davison, along with his management team previously helped design the largest Microsoft cloud audit process at the time in Germany (2015). In 2020 Steven then went on to work on the world’s first FinOps Accredited Review platform with SoftwareONE using his previous process flow platform SAMSentry (formerly owned by Infraware).

Our approach is staged to ensure that our clients can benefit from the instant nature of cloud cost control but then also achieve long-term and sustainable cost controls. Our unique position of being purely independent means our goals are completely aligned and without conflict.