3 ways to temper sky-high cloud costs:
Rein in your budget with multi-cloud cost optimization

 In |

Reading Time: 3 minutes

Multi-cloud adoption and cloud application migrations are exploding.

According to Flexera’s 2022 State of the Cloud Report, 89% of organizations have a multi-cloud strategy, with 80% taking a hybrid cloud approach. The COVID-19 pandemic also led to enhanced cloud usage, as 66% of businesses admit their cloud usage is greater than anticipated this year.

Despite the mass embrace of cloud services, many companies still have trouble containing growing cloud costs. Per the report, 81% of businesses cite managing cloud spend as the top cloud challenge they face, with respondents estimating they waste 32% of their cloud spend. This will only get more difficult as cloud consumption grows.

Over the next 12 months, companies predict their cloud spend will increase 29%, making it even more imperative to nip these cost optimization struggles in the bud.

Here are three quick and easy ways your organization can reel in soaring cloud bills.

1. Address orphaned cloud resources

Virtual servers that are currently sitting idle, cloud resources connected to development sandbox experiments, and snapshots to disks that don’t exist anymore are all examples of orphaned or “zombie” cloud resources — and they could be eating away at your cloud budget.

It’s believed that as much as $2.6 billion in cloud spend is likely wasted annually on orphaned volumes and snapshots. To make matters worse, many organizations may not even know they’re running and paying for these orphaned resources.

If you want to get your cloud costs under control, shutting down or eliminating unused resources is a good place to start.

2. Implement scheduled suspension for non-production resources

Is your business running non-production resources in the cloud 24 hours a day, 365 days a year?

Certain resources like developing and testing don’t need to be running in the cloud nonstop. That’s one way to ensure your cloud bills skyrocket.

Instead, implement scheduled suspension for non-production workloads. You can even automate the process. That way, you’re not running resources when they’re not being used, thereby reducing your overall cloud spend.

3. Utilize cloud purchase discounts

Are you taking advantage of cloud purchase discounts?

Reserved instances, reservations, and volume discount plans can produce significant cloud savings if you’re willing to make a long-term commitment. However, this requires a bit more planning.

Our advice for optimal success is threefold: First, start small. This will enable you to learn more about volume discounts over time rather than making a big splash before you’re ready. Second, think about the big picture. Make your purchasing decisions with an eye toward strategic future planning. And third, review the fine print. Go back over your licensing terms, payment terms, and contracts with a fine-tooth comb. You may have overlooked some details that could save you money.

The road to mature FinOps practices

Many organizations today struggle to control their spiraling cloud costs. These three practices can help you gain relief in the short-term, but real cloud cost optimization requires a more strategic approach.

Such optimization can be achieved when you embrace more mature FinOps – the set of practices for leveraging the cloud cost efficiently. And we can help.

Check out our Cloud Cost Optimization ebook to learn more about reining in spiraling cloud costs and improving overall cloud management.