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Home » Cloud cost optimization – Steps to make note of – Part 1

Cloud cost optimization – Steps to make note of – Part 1

cloud cost optimization

Cloud cost optimization is a practice any organization should adopt to ensure they spend right on the cloud. We have discussed what are the benefits of cloud cost optimization in the past. Let’s see how to plan the same.  

Step 1:

Arm them 

Every cloud stakeholder should be armed with documents, tutorials, training, guidance, and tools to effectively handle the cloud environment. FinOps products should have the ability to provide graphical representation and reports on cloud usage. Reports should facilitate the stakeholders to dive deep into granular pod level, node level, business unit level, tag level usage, associated cost details, etc.  

For example, our product Cloud CADI offers reports and trend charts covering parameters like

·      CPU utilization

·      Memory

·      Disk Read

·      Disk Write

·      Storage Disk Read

·      Storage Disk Write

·      Network Received

·      Network Sent

·      Storage 

These reports should equip the cloud practitioners with the necessary cost information for effective decisions.

Step 2:

Herd them 

One of the major challenges the enterprises face is cross-functional transparency. There may be two app development teams developing two different cloud-native applications without knowing that they both use different monitoring tools that satisfy the same purpose. Procurement teams go with a vendor based on the options provided by the cloud teams and better negotiation with the vendor. They have little or no interest in the usage of the tools by diverse teams. 

It is crucial to identify these common requirements and consolidate the resources accordingly. 

Step 3:

Pivot on center 

Cloud management is a tricky process. Cloud involves the operations team, finance team, cloud engineers, cloud architects, the procurement team, LoB managers, C-suite executives, etc. conveying a different message. Requirements vary from time to time. Organizations should have a centralized cloud cost optimization/FinOps team to mitigate the differences. Any cloud financial decision like buying new licenses, renewal, going hybrid cloud, etc., before reaching the CXO’s office should pass through the FinOps team’s scan.

After a thorough scanning of real needs and expectations, costs and business value mapping should be carried out. Once it is acknowledged, it should reach the decision maker’s table for approval.  

Related Reading: FinOps principles

Step 4:

Retire the unclaimed 

There are resources that secretly weigh the cloud bills. Cloud practitioners set up auto-scaling to ensure enough capacity to face the traffic demands and improved cost management. Let’s consider Azure GPU machines. For high-end remote visualization, ML, and deep learning, GPU category, N-series virtual machines are ideal.  

They accommodate low latency, high-throughput network interface for graphics or video-intensive workloads. When the engineers miss out on calculating the right number of nodes and configure in excess, the organization ends up paying for these zombie nodes. 

For example,

Azure Instance NC12 with 1XK80 GPU offering 12 vCPUs costs $1.8 per hour. Consider 10 such instances counting 120 vCPUs configured but 5 left unused. At the end of the month, you need to pay $13140 instead of $6570 to Azure midst of no accountable benefits. 

It is hard to identify these nodes until you address these in the line items of lengthy cloud bills. For larger organizations handling several applications, identification and mitigation go out of manual efforts. Options left with us are to manually plan and closely watch the configuration process, identify the unclaimed assets, and retire (which is not always feasible) or to go with cloud cost optimization products.   

Step 5:

Don’t let it rest

Cloud cost optimization is not a one-time setup to build and leave aside. It is an ongoing process that is closely associated with business productivity and growth. When the organization scale, cloud dependency increases piling up the cloud resource volume to meet the growing demands. The need for faster delivery, customer experience, rapid innovations, and competition foster organizations to less worry about the selection, allocation, tracking, and costs of the cloud workloads. Generally, they lock in with the existing cloud vendors for easier procurement and support. 

Organizations tend to lose millions when they miss out on optimizing their new workloads along with the previous. Select a FinOps solution that runs along with your vision, each day dragging everything under one umbrella.

Let’s catch up with Part 2 soon. Keep optimizing. Cloud CADI is with you!