Cloud has been a key solution for many businesses, thanks to its flexibility and agility. Yet, cloud costs are a factor that businesses need to consider carefully. As your business scales on cloud, it is imperative that you gain complete control over your cloud infrastructure to make sure that you don’t go over budget. But how do you do that? You can use different approaches to help manage your cloud costs like provisioning resources manually or using an auto scaling service. Here we will look at some of the best practices in the industry on how to manage your cloud infrastructure costs and how to get the most out of your cloud solution.
Take Control of Your Cloud costs to Maximize Savings
In today’s fast-paced business world, almost every organization has embraced cloud infrastructure to drive growth. However, balancing cost optimization and high performance in the cloud is a challenging task. While it’s essential to keep cloud costs in check, it’s equally important to ensure that your cloud setup delivers optimal performance.
Performance and price: why cloud?
Cloud computing has not only become a trend, but also an economical way to build, deploy and scale business applications, infrastructure, and data. Cloud infrastructure is especially appealing to companies that lack the financial means to purchase, construct, and upkeep their own hardware and software. The flexibility, scalability, and cost-savings of cloud have made it an attractive choice, especially for organizations that rely on IT. With the cloud, businesses are able to get moving faster, so that they can focus on their core business.
Here are the main reasons why businesses choose cloud computing–
- Performance: Cloud computing offers high-performance computing and storage resources that can be scaled up or down as needed to meet the changing needs of businesses. With the ability to access vast computing resources on demand, businesses can quickly and easily respond to changing business needs and support the growth of their operations.
- Cost-effectiveness: One of the key benefits of cloud computing is its cost effectiveness. With cloud computing, businesses can pay for only the resources they need, when they need them – which reduces capital expenditures and operational costs. Furthermore, cloud providers typically offer a range of pricing options, such as reserved instances and spot instances, that can help businesses optimize their spending.
- Flexibility: Cloud computing provides businesses with the flexibility to scale their operations as needed, without being limited by the constraints of on-premise infrastructure. This allows businesses to be agile and respond quickly to changing business needs, such as spikes in demand or the launch of new products or services.
The costs of on-site data centers, for example, go way beyond the price of the cloud servers you would need to get started. Indeed, the cost of operating a data center is much higher than the cost of maintaining a cloud infrastructure.
Cloud computing is generally more cost-effective compared to using on-site servers. From a financial standpoint, it makes a lot of sense to opt for cloud. It can fit into any budget, which is why it has become so popular.
Best practices for managing cloud infrastructure costs
Cost optimization is a crucial aspect of cloud infrastructure management as it helps businesses reduce their spending while maintaining the performance and reliability of their systems. The following are some strategies for cost optimization in cloud infrastructure –
Right-sizing resources: One of the biggest drivers of cost in the cloud is over-provisioning of resources. It’s crucial to periodically evaluate your resource utilization and adjust the size of your instances, storage volumes, and databases to align with your current requirements.
Use reserved instances: Another way to reduce costs is to purchase reserved instances. This allows you to reserve capacity for a specific period of time, usually one or three years, at a discounted rate compared to on-demand pricing.
Auto-scaling: Auto-scaling is a feature that automatically adjusts the number of instances you have running based on demand. This enables cost optimization by only incurring expenses for the resources required at a given time.
Use Spot/Preemptible VMs: These VMs are short lived instances that can be bought at a discounted rate. Using these can help you save significantly on your cloud infrastructure costs, especially for batch processing, flexible workloads, and fault-tolerant systems.
Utilize containerization: Containerization technology, such as Docker and Kubernetes, can help you optimize costs by allowing you to run multiple applications on a single host, reducing the number of instances you need to run.
Enable cost tracking: Monitoring your cloud infrastructure costs is crucial to cost optimization. Most cloud providers offer cost tracking and reporting tools to help you see how much you are spending, where your costs are coming from, and how you can optimize them.
Take advantage of free services: Most cloud providers offer a range of free services, such as storage, databases, and networking, that you can use to get started. Taking advantage of these free services can help you save money as you build out your cloud infrastructure.
GCP tools for optimizing cost
Google Cloud Platform (GCP) offers several tools to help you optimize your cloud costs and reduce your spending. Here are some of the key tools for cloud cost optimization on GCP:
- Cost Management and Billing: This tool provides a centralized view of your cloud spending, including detailed cost analysis, cost reports, and alerts for budget overages.
- Right-sizing: GCP’s Compute Engine offers tools to help you determine the optimal size for your virtual machines, based on their resource utilization. You can then adjust the size of your instances to match your actual needs and reduce waste.
- Sustained use discounts: GCP offers sustained use discounts that automatically apply to virtual machines that run continuously for a sustained period of time, reducing the cost of running these instances.
- Committed use contracts: This tool allows you to commit to using specific resources for a set period of time, in exchange for a lower, predictable cost.
- Preemptible virtual machines: GCP offers preemptible virtual machines, which can be terminated at any time, at a lower cost than on-demand instances. This can help you save on your costs for batch processing and other flexible workloads.
- Cost-effective storage options: GCP offers a range of cost-effective storage options, including regional and multi-regional storage, Coldline storage, and Archive storage, to help you optimize your storage costs based on your needs.
- Cost optimization recommendations: GCP’s AI-powered recommendations tool provides cost optimization recommendations based on your usage patterns, helping you identify areas where you can reduce your costs.
By using these tools, you can effectively manage your cloud costs on GCP and reduce your spending while maintaining the performance and reliability of your systems.
To summarize, cost optimization is a continuous process and requires a careful evaluation of your cloud infrastructure usage and needs. Get in touch with us to know more!