Cloud computing has transformed the business landscape, offering scalability, flexibility, and cost-effectiveness. However, one downside of cloud computing is cloud waste. Cloud waste occurs when organizations spend money on cloud services they need to utilize or optimize fully. Estimates suggest that organizations waste about 32% of cloud spending, causing budgetary concerns as expenses increase.

This statistic, however, also presents an opportunity. Optimizing cloud tools can reduce nearly a third of cloud spending. So, how can businesses minimize cloud waste and save money? Here are some effective strategies to consider.

Perform a Thorough Cloud Audit

Before you can implement any cost-saving measures, it’s crucial to understand your current cloud usage. A thorough cloud audit can help identify underutilized resources, overprovisioned instances, and unnecessary services. Utilize cloud management tools to generate reports and examine usage patterns, costs, and performance metrics. This initial evaluation lays the groundwork for effective waste reduction strategies.

Implement Right-Sizing Strategies

Right-sizing is the process of aligning your cloud resources with the actual demands of your workload. Many businesses need to be more productive, securing more user licenses or features than necessary, leading to increased costs and waste. Analyze your workload requirements and adjust instances accordingly using tools provided by your cloud service provider. This guarantees that you only spend on the resources you genuinely require.

Utilize Reserved Instances and Savings Plans

Cloud service providers propose cost-reduction alternatives such as Reserved Instances (RIs) and Savings Plans. These options allow businesses to commit to a certain amount of usage in exchange for lower rates. Utilizing these alternatives can substantially decrease your cloud expenses over time. Carefully examine your workload and usage trends, then choose the most economical reserved capacity or savings plan that aligns with your company’s long-term objectives.

Implement Automated Scaling Policies for Dynamic Workloads

Dynamic workloads require dynamic resource allocation. Automated scaling policies help your infrastructure adjust to demand, improving performance and avoiding overprovisioning during slow periods. The policies scale up or down as needed.

Cloud services such as AWS Auto Scaling and Azure Autoscale adjust resources automatically. This eliminates the need for manual changes and optimizes resource usage.

Manage and Optimize Storage

Storage costs can quickly increase, especially if you do not regularly review and archive data. It’s essential to determine how much storage you need. Setting up rules to automatically reduce unused data is crucial.

This can save money by transferring it to more affordable storage options. Consistently checking and removing unneeded data to clear up storage room space and taking an anticipatory stance towards storage administration can drastically cut down expenses related to data storage.

Plan Your Cloud Assets

Planning your cloud assets to operate only when required can substantially reduce costs. For instance, you can close non-essential environments such as development, testing, or staging during off-hours.

You can also decrease the size of your production environment when activity is slower. This can help save costs and optimize resources. Tools are available that can automate the scheduling of your cloud resources based on predefined rules and policies.

Remove Unused or Orphaned Cloud Resources

It’s common to overlook or fail to remove cloud resources that are no longer in use or required. These may encompass snapshots, backups, volumes, load balancers, IP addresses, and dormant accounts. Over time, these resources can pile up and lead to unwarranted expenses.

To prevent this, it’s advised to consistently review your cloud setup and remove any idle or abandoned assets. Cloud provider tools often assist in finding and eliminating these resources.

Eliminate Redundant Services

In many organizations, different departments might use similar services for the same purpose. For instance, the marketing team might use one task management app while the sales team uses another. By consolidating cloud resources and removing unnecessary tools, you can not only cut costs but also improve teamwork, data reporting, and integration across various departments.

Adopt Serverless Architecture

Serverless computing allows businesses to run applications without managing the underlying infrastructure. You only incur charges for the exact computing resources utilized by your operations. This approach eliminates the need for server provisioning and maintenance, reducing operational complexity and costs. Transitioning appropriate tasks to a serverless framework can enhance resource utilization and minimize cloud redundancy.

Book Your Cloud Optimization Assessment Now!

By using innovative strategies, you can reduce cloud waste and save money on your cloud expenses. Additionally, you can enhance operational efficiency and promote environmental sustainability.

If you need help managing your cloud expenses, our team of experts is here to help. Contact us today to schedule your assessment.