Are Your Public Cloud Computing Bills Too High?
Historically, IT executives were concerned with scalability, uptime and cost. Now with public cloud, scaling is easier and almost unlimited. With unlimited scaling, comes unlimited billing too. We learned that under-utilization and the need for concise capacity planning is more critical than ever.
You can overbuy server instances than needed and while most apps autoscale up nicely, they don't always give computing resources back to the public cloud when you no longer need extra compute. Do you need to chargeback resources to different departments? This is also a challenge.
Do you Use Any of these methods to manage cost?
- the public cloud interface,
- an elaborate spreadsheet or
- your monthly bill from the cloud vendor
If you've answered yes to any of these questions, chances are that you are drastically overspending. For workloads that are between $10,000 and $40,000 monthly, we usually see a 15-25% overspend. Once an environment exceeds $50,000 per month we can sometimes find up to 40% in overspend. It's akin to running your business without accounting software.
This overspend is usually a result of:
- Server Instance Families that are greater than the workload
- Not using Reserved Instances in certain aspects
- Billing anomalies that aren't caught until the end of the month
- Orphaned server or storage instances that are idle but being billed.
To help our clients deal with these cost overruns we've decided to partner with Cloudability and their True Cost platform. If you are managing your public cloud spend manually, you are missing out on massive cost saving opportunities. If you'd like to chat briefly about this, schedule an appointment with one of our cloud engineers.
The 3 Essential Phases to Getting Cloud Costs Under Control
Understanding your total cloud spend has to be done through the classification of costs based on teams, departments, projects and applications. Not only does this classification need to happen but the ability to drill into real time data is a must.
Cloud Resource Optimization
The sizes of cloud instances should be modeled and understood. Internal policies should support the notion of constantly analyzing usage and making decisions appropriate to long term cost savings. Full utilization of each instance is key.
Continuous Policy Automation
Driving higher utilization, spotting patterns and detecting unusual costs before a large bill comes your way is key to cost management. Cloud cost optimization can be made part of the culture when it's easy and not based on manual processes.