A Cloud Cost Management strategy allows you to understand your Cloud Computing bill. Many feel that the cloud will be cheaper but the real benefit is the ability to scale compute in small steps.
Learn more about the disadvantages of Cloud Computing in our video below which relates to how costs can quickly escalate.
The Cloud Cost Management Dilemma
The operations around deploying infrastructure are elaborate when examining the coordination and expertise required. Here’s a partial list of responsibilities:
- purchasing hardware & maintenance
- licensing software & maintenance
- server monitoring & management
- security monitoring & management
- network monitoring & management
- backup management
- disaster recovery and business continuity management
With that list, it’s easy to see why the cloud is so appealing but even in the cloud, you can easily overbuy capacity. Apps tend to scale up nicely but they don’t scale back down when you no longer need extra compute.
Do you use any of these methods to manage costs?
- the public cloud interface
- an elaborate spreadsheet
- your monthly bill from the cloud vendor along with some tags?
If you’ve answered yes to any of these questions, then the chances are that you are overspending.
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 add up drastically over the course of the month.
- Orphaned server or storage instances that are idle but being billed.
If you are managing your public cloud spend manually, you are missing out on cost-saving opportunities. You can also check out our ever-evolving What is Cloud Computing reference section which outlines the challenges behind the Cloud.