Diagnosis of Cloud Costs and Effective Optimization

The software industry considers incorporation of cloud as the foundation of stability in a company. Unfortunately, the transformation turns out to be a terrible one for some businesses. Forbes reveals that small businesses spend $120 thousand annually on cloud out of which one-third is wasted. Consequently, every enterprise with average spending is losing $40 thousand a year. The absence of cloud optimization strategy leads to this money evaporation.

Despite a staggering number of wasting resources, only 42% of cloud adopters optimize the spending (Forrester Research). Nevertheless, over 80% of businesses are employing multi-cloud strategy while 20% aim to double the spending in the upcoming two years.

The primary cause of failure is the inefficient utilization of the services. Most of the case studies of failed companies unveil that the businesses do not only lack the ability to optimize spending but also fail to identify the loopholes.

Identification of Cloud Inefficiencies

The first step toward solving any problem is to identify its type and degree. Inefficiency in cloud sprawls for various reasons. The services acquired through cloud make little sense if the utilization is not yielding sufficient results. Out of all, invisible costs are the most commonly occurring cloud problems.

Invisible costs

Unlike desktop applications, cloud-based software usually requires a subscription. Some packages offer unlimited acquisition of services in a given timeframe whereas others prefix the consumption of volume. In the latter case, unused machines consume data without returning productivity.

A task which is unnecessarily occupying a resource for an indefinite period reduces cloud performance optimization. The workers often keep such services despite performing tasks that do not require any of these systems. For instance, the existence of orphaned instances disallows the explicit exclusion and explicit import.

Unused machines may not always be the cause of invisible costs. Many enterprises are unable to use resources adequately. Consequently, they have to pay a two-tier cost. First, costs in the form of under-utilization of resources. Second, the costs emerged from payment of bills for the acquired services.

Automation Deficit

One of the primary reasons for incorporating cloud is to automate petty business operations. The top companies implement orchestration – an effective cloud optimization method to automate the activities of deployment and configuration of software. The absence or ineffective implementation of these techniques result in repetition of tasks and require frequent human intervention.

Many businesses acquire cloud optimization services but ignore the automation tools which serve as bridges to connect API. Automation is also significant when the administrator wants to perform tasks on private cloud through hybrid clouds.

The migration to a new environment and reconfiguration of applications requires coordination between teams. Usually, the struggling companies take the bottom-up approach where each team migrates independently. Consequently, the system carries fragmentation pushing the team members to repeat tasks which, otherwise, could have been done simultaneously.

Ineffective Workplace Infrastructure and Training

While cloud facilitates businesses in numerous ways, it also demands utmost demonstration of responsibility. Deficit of training allows the employees to recklessly spend the resources without considering the consequences. This is particularly the case with fledgling workers with no or little prior experience working with cloud.

The absence of a comprehensive business plan results in a substantial increase in costs. Besides, the migration to cloud may not optimize the operations because owners have not defined the objectives. One frequently occurring instance is the continuing of traditional infrastructure despite incorporating cloud. If the company does not redefine infrastructure which conforms to cloud, the costs are likely to hike.

Elimination of Cloud Inefficiencies

After successful diagnosis or before acquiring cloud services, businesses should consider following factors.

Setting the Granularity

While selecting cloud services, one should consider the instances with higher granularity. In essence, the smaller instances enable the owners to keep the costs in sight. Conversely, larger instances make cloud computing inflexible with less ability to scale up in future. Thus, it is wise to start with the smallest granularity and determine the inevitable services.

If business managers are aware of the invisible costs, the aggregate costs of cloud become predictable. This predictability follows from the fact that each machine has a fixed cost per hour.

Ensuring Productive Resource Acquisition

Resource acquisition should drive the motion toward achievement of primary objective of complementing the business needs. The procurement of virtual cores and cloud optimized storage are the most crucial decisions because entire set of operations relies on their effectiveness.

The administrators should also arrange to integrate various assets to increase productivity. For instance, a business may connect Zapier and Google Analytics simultaneously. The former allows automation to post on multiple social media accounts without losing personalization. Analytics tool, in the meantime, presents the insights about user engagement on content posted on social media.

Cloud computing enables IT companies to outsource staff from third-party agents. This ability eliminates the need to hire expert individuals for short-term engagements. They can simply outsource the task to the individuals with expertise outside the company. However, the cloud cost optimization may not bring the intended results when procurement of expertise is not an option.

Migration to the cloud should be flexible enough with auto scalability. The approach to incorporate a generic solution for a wide range of problems creates massive challenges.

Defining the Protocols

Business owners must develop a hierarchy of governance to identify the roles of each cloud services user. An undefined hierarchy leads to frequent data breaches. Companies lacking hierarchical model fail to penalize the breach since they lack the ability to identify the point of violation.

Using infrastructure as a code policy is essential which enables developers to deploy apps without needing admins’ intervention. IaC eliminates the dependence on network experts and minimizes repetition of operations.

The managers should ensure structured procurement for multiple order verifications. Moreover, they should also render a robust training system to familiarize each new employee.

Is your company among the 75% of participants who consider the optimization of cloud spending as the toughest challenge? Efficient optimization of cloud ensures that the managers can spend the saved time and money in other domains.

Contact us today so that we can diagnose the problem and optimize the cloud spending for you.