Written by Faisal Jamshed
Faisal is an experienced Account managers at KUWAITNET, primarily focusing on AWS.
The worldwide expenditure on public cloud is anticipated to exceed $679 billion by 2024 and is expected to grow up to $1 trillion by 2027. With this, the importance of cloud services is becoming increasingly significant. At KUWAITNET, we believe that cloud computing allows you to adjust the resources based on your actual usage and scale them up or down as necessary. Due to increased cloud usage and spending, 85% of large businesses intend to implement a multi-cloud strategy by 2024.
But effective cloud cost management is trickier than it first seems, as many developers have found out. Excessive, often unanticipated costs can result from unrestrained testing efforts, protracted engineering sessions, or aggressive product features. Therefore, using best practices for cloud cost optimization is the key to reaping the advantages of cloud computing while minimizing needless expenses. In this blog, we will share some essential strategies to prioritize resource allocation, financial responsibility, and governance.
Some of the best strategies for cloud cost optimization are:
If you haven't previously, start by creating a master AWS organization payer account. As an Advanced AWS Partner since 2014, KUWAITNET suggests creating a single source of truth for all cloud expenses for the business. This account should compile the spending data for each new account member. Maintaining different accounts may make it more difficult to trace cloud costs afterward.
Work on capturing context after that. From sources like VPC flow logs, CloudWatch, and CloudTrail, AWS creates a large amount of telemetry that provides insightful information about system behavior. It is up to your team to compile this data and connect it to invoicing details.
Lastly, keep an eye on your past spending. Turn on cost and use reporting so you may look at past spending trends and find any unusual expenses.
Understanding budgets and goals for each project is essential for effective cost control among all stakeholders. To determine cost requirements depending on packaging and delivery methods (e.g., organizational plans or free trials), engineering executives should work with CEOs and product leadership. Planning and development should take these requirements into consideration while weighing trade-offs with other goals like robustness and speed.
Encourage cost consciousness among all staff members and make it simple for them to comprehend and keep track of spending. This can be achieved by encouraging the development team to view and comprehend actual expenses by spreading awareness of cloud costs across the company. When making engineering decisions, always consider the cost. To simplify the interpretation of cost statistics, ensure that:
The cost information is current
It is put in perspective
It is measurable
"Illustration of cloud cost optimization strategies."
KUWAITNET believes certain metrics are essential for all the core members of the organization to know to optimize their cloud costs.
Unit Cost: Is it a cost per report or a cost per API call? Determining the return on investment (ROI) of your cloud investment requires an understanding of the factors impacting expenses and how unit costs impact your bottom line. It will help you decide how to charge consumers and allocate resources in the cloud. If there is a high return on unit cost, then spending much money in the cloud is not an issue.
Idle Cost: This is the system's base cost, or overall productivity when no consumers are utilizing it. Figuring up your idle cost makes it easier to decide if the work is worth the savings from architectural modifications.
Shared Infrastructure: Although shared systems can result in cost savings or engineering efficiencies, dividing expenses among several teams can be difficult. Big businesses must choose how to handle chargebacks or shared expenses.
Calculate Your Cost/Load Curve and Your Cost/Load Efficiency Curve: When you gain clients, do your unit expenses increase exponentially or at the same rate as your customer base? If your growth curve is exponential, the system can eventually cross a boundary and lose money. Recognizing this beforehand enables you to weigh your options for handling it.
Learn more about cloud cost optimization HERE.
The best tools to handle cloud cost optimization in 2024 are:
nOps is an AI-powered FinOps automation solution meant to assist AWS users in cutting their cloud costs by up to 50%. Under its no-risk business model, users only pay if they save money, with fees deducted from those savings.
Engineers may easily take action with simple integrations and automation thanks to nOps' customization possibilities, which can be tailored to meet preferred resources and tools. nOps has over $1.5 billion in cloud spending under its belt and is regarded as the best tool in G2's cloud cost management category.
Integrated with more than 70 AWS services, the AWS CloudWatch, is a powerful monitoring and observability tool. With its broad monitoring tools, it offers complete insights into performance, resource use, and operational health.
Personalized dashboards, alerts, notifications, automated resource scaling, and debugging and troubleshooting tools are just a few of CloudWatch's features. Although it works well in AWS setups, it can be difficult to set up properly, and because it is primarily focused on AWS, it may not be as useful in multi-cloud scenarios.
Densify optimizes Kubernetes resources and automatically configures cloud instances. KUWAITNET, a Premier Red Hat partner since 2004, provides dependable and efficient Kubernetes, container, hybrid cloud, and Linux technologies.
Densify excels in continuously matching cloud services and apps to the best cloud infrastructure by leveraging machine learning to analyze workload characteristics and cloud provider capabilities. It functions with hybrid and multi-cloud architectures and supports a range of cloud services.
You may efficiently control and optimize your cloud expenses by implementing these tactics and resources, guaranteeing that you take full advantage of cloud computing without going over budget.
Are you prepared to maximize your cloud costs and achieve increased productivity? In 2024, efficient cloud cost optimization will be both a strategic and technical requirement. Through the application of these best practices and the utilization of potent tools such as nOps, AWS CloudWatch, and Densify, enterprises can attain noteworthy cost reductions without compromising on performance and expandability.
Our specialty at KUWAITNET is guiding businesses with the challenges of cloud cost management. For a customized cloud cost optimization plan that supports your company objectives, get in touch with KUWAITNET right away!
1- Cloud Cost Optimization: 15 Best Practices to Reduce Your Cloud Bill
2- What is Cloud Cost Management?
4- Top 10 Cloud Service Providers in 2024
5- Why Choose a Multi-Cloud Strategy?
AWS, AWSSolutions, Cloud, CloudComputing, CloudCostManagement, CloudCostOptimization, CloudProviders, DigitalTransformation, Kuwaitnet,
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