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March 1, 2023
9 min

Cloud Infrastructure Cost Optimization - A Quick Guide By DATAFOREST

March 1, 2023
9 min
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Unlocking the Potential of Cloud Infrastructure: Introduction to Cloud Cost Optimization

Adopting cloud technology to gain access to enterprise-level infrastructure and services offers numerous advantages for companies of all sizes. Nevertheless, users may urgently need to optimize their costs at some point. Failing to optimize cloud costs can quickly eat into the benefits provided by migrating to the cloud.

Cloud cost optimization is the process of identifying and implementing strategies to reduce spending related to the use of cloud services. It can use many strategies to optimize operational expenditures or involve using automation and orchestration tools. 

Let’s take a closer look at a straightforward example: customers of Microsoft Azure, Amazon Web Services or AWS, or Google Cloud pay for the resources they order whether they use them or not. So, can we make any estimate of the waste in 2023? According to the last Flexera’s Cloud Report, made in December of the preceding year, up to 32% of business cloud spending was wasted, and there is no reason to think it will be otherwise for the year 2023.

Cloud cost optimization is a set of actions for reducing cloud infrastructure expenses while maintaining the systems' performance and functionality. It is a comprehensive and challenging task that requires a level of expertise in both the analytical and technical aspects of cloud services. A DevOps practitioner is a specialist who combines the technical and analytical skills required in cloud technologies. Unlock the full potential of your data with the expert data solutions at DATAFOREST, the data engineering company that specializes in generating effective solutions for your business. Our professional team of advanced DevOps and other data specialists with more than 7 years of experience in cloud technologies will help you to optimize your cloud resources.

Cloud Infrastructure Cost Optimization

What Is Cloud Cost Optimization in Action: Explaining the Implementation

Let’s take a closer look at the process of cloud cost optimization. It is a multi-stage process with three conditional components.

Analysis: Cloud cost optimization strategies typically begin with a thorough analysis of the user’s current cloud resources usage and costs. The research stage usually comprises the monitoring of usage patterns, identifying high-spending areas, and determining where resources are wasted. 

Planning and Implementation: Once the analysis is complete, the organization needs to develop a plan and implement cost-saving measures (we will take an in-depth look at this stage later) using specific strategies and tools. This stage is mainly focused on increasing performance and impacting the areas of waste and inefficiency.

Monitoring: The third stage implements ongoing monitoring and management of cloud resources. This part contains tracking usage patterns, supervising implemented measures, and making adjustments as necessary. This vital third step ensures that the user can optimize its cloud resources continuously over time.

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The Importance of Cloud Cost Optimization

If you are still asking yourself why cloud cost optimization is important, here are some key points to consider. 

  • CCO can help companies reduce overall cloud infrastructure expenses, which will significantly impact the bottom line. 
  • By optimizing costs, companies can free up their budget to invest in other business areas, such as new product development or marketing. 
  • CCO can help companies to forecast better and manage their cloud resource costs Although the factor of reducing expenses can be significant for organizations with limited IT budgets, unnecessary waste spending is painful for companies of all sizes.

The challenge of CCO is that of finding the most efficient and cost-effective implementation possible. This can improve the overall performance and scalability of the cloud infrastructure. Consequently, implementing cost optimization strategies and practices can help companies to be more competitive by increasing cost efficiency. 

All of this is the core of cost awareness, the key to success in today’s fast-paced business environment. Want to stay ahead of the competition by implementing optimization strategies and practices? 

Discover how DATAFOREST, already one of the leading companies in the data science market, can help you achieve the maximum cost efficiency in your cloud infrastructure today.

Cloud Infrastructure Cost Optimization

Cloud Cost Optimization Roadmap: Best Strategies, Tactics, and Practices

Here are some strategies to keep in mind when creating a cloud cost management plan or program. 

The roadmap should consider the current state of an organization’s cloud infrastructure and set clear goals for cost optimization, such as reducing spending by a certain percentage or achieving a specific target.

  1. Cloud Native Design

Cloud-native cost optimization is an approach to building and running applications that are optimized for the cloud. The specific strategy and critical elements will depend on the particular cloud provider. For instance, here is a guide for design principles from Amazon. The best approach to optimizing cloud resources costs with key elements of cloud-native design will vary depending on cloud providers. However, common approaches for improving the design include implementing cost-saving strategies such as reserved and spot instances and auto-scaling; automation of resource management, understanding and leveraging the unique features of the particular cloud provider. Sometimes, the opposite approach is appropriate, building cloud-agnostic applications which are not tied to specific cloud service providers. This enables being able to choose the most cost-efficient provider at any given point in time.

Creating a well-organized cloud-native design creates great cost optimization opportunities; however, even with the best cloud resources, cost optimization may still be difficult. This task requires a comprehensive approach, considering all aspects of an issue. It is even hard to create a cost-efficient minimum viable product by yourself. 

At DATAFOREST, we are ready to offer you our extensive expertise to help you develop a comprehensive strategy that addresses all aspects of your cloud resources.

  1. Cost forecasting

Cost forecasting is the act of anticipating future expenses and making decisions to control costs. By analyzing past usage and costs, businesses can create accurate predictions and apply cost-saving measures before expenses spiral out of control. 

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Forecasting measures include the right capacity reservation volume, correct data storage reservation, using reservation volume discounts, choosing the best data center, and creating a consumption model.

  1. Monitoring

Constant cloud cost monitoring is a critical component of any strategy. By ongoing continuous monitoring of cloud infrastructure usage and cost, businesses can track spending and identify and address inefficiencies and overspending areas in real-time. This allows them to make adjustments and implement corrective measures as needed rather than waiting for a large bill at the end of the month. 

  1. Expenditures review

Billing and pricing review, as well as analyzing discounts or pricing models that may be available, remains a very efficient tool for making your cloud infrastructure more efficient.

Considering this, let’s move towards a small but valuable piece of advice. Create the habit of regularly increasing cost awareness and making your costs visible. Then, at some moment, you will catch yourself thinking that you do not need additional strategies to reduce your spending.

Red Flags and Signs that You Need Cloud Cost Optimization Managed Services Immediately

Sometimes it can be challenging to know when to start implementing these strategies and practices. Initially, you have high cloud data storage costs. Is the moment when you realize this a good moment for a panic consultation for cloud cost optimization? Well, it depends. There are several reliable ways to identify the need for optimization or, let’s say, the red flags that it had to be done yesterday:

  • Increasing cloud resources expenses. If your costs are consistently growing without an increase in usage or growth of business scale, it may be a sign that your cloud infrastructure is not optimized;
  • Unused or underutilized resources. If you have a cloud resource that stands idle, it’s a sign that you are wasting money;
  • Lack of visibility into cloud usage and costs. Without proper monitoring and reporting, it can be difficult to identify areas of inefficiency and overspending;
  • Difficulty in managing and scaling cloud resources.
  • Compliance and regulatory concerns. If your cloud infrastructure is not optimized, it may not comply with regulatory requirements. This can lead to costly penalties;
  • Performance issues that are quite obvious and straightforward. Poor performance and slow response times which negatively impact your business.

 If any of these signs are present, you should start thinking about a cloud cost optimization strategy and implementation.

Cloud Infrastructure Cost Optimization

Practical Benefits of Cloud Cost Optimization with DATAFOREST

Cloud resources cost optimization rules cannot be universal. This is why cloud cost optimization consulting is needed. 

At DATAFOREST, we apply a unique approach to each particular case. The vast expertise of our team, consisting of data engineers, DevOps, marketers, analysts, and other specialists, is perfectly complemented with the best cloud cost optimization solutions to deliver an efficient and cost-effective management plan. Our team’s diverse skills and knowledge, combined with the latest technologies, allow us to provide our clients with a comprehensive and tailored approach, delivering optimal results and long-term sustainability.

Optimizing cloud infrastructure expenditures will help you not just save money but also improve the performance of systems and comply with regulations. Doing it with DATAFOREST will ensure you get the best results possible. DATAFOREST is not just a regular cloud cost optimization company; it is an expert team that specializes in providing comprehensive and tailored solutions across the complex data landscape. With us, you can be confident that you are getting the best possible cloud cost optimization services to help you achieve your business goals.

Concluding Remarks on the Subject of Cloud Infrastructure Optimization

Cloud cost optimization is essential for cost-effectively managing a successful cloud infrastructure. CCO involves identifying inefficiency and overspending aspects of the architecture to improve performance while reducing costs. Cloud cost optimization benefits are numerous. With the right approach, cloud cost optimization can help companies stay competitive in today’s market and help to achieve long-term growth. CCO is a process that should be considered an ongoing task to ensure maximum and sustainable results. Overall, cloud cost optimization is a must-have for any company to make the most of its cloud infrastructure.

Cloud Infrastructure Cost Optimization


What is the difference between cloud cost management and cloud cost optimization?

Cost optimization and cost management are related but distinct concepts. 

Cloud Cost Management is the overall process of controlling and reducing expenses, including monitoring usage and spending, identifying areas of unnecessary cost, and implementing policies and controls to limit or lower expenditures. 

Cloud cost optimization is a specific aspect of cost management that focuses on identifying and implementing particular strategies to reduce costs. It can include right-sizing pre-ordered resources, identifying and eliminating unused resources, and using reserved or spot instances.

Why is it necessary to optimize cloud resources cost?

Optimizing cloud costs is necessary to ensure that users are not overspending on cloud services. It helps to increase the efficiency and cost-effectiveness of the overall business strategy.

What are common challenges companies face when trying to optimize their cloud infrastructure costs?

Common challenges that can occur when trying to optimize cloud costs include a lack of visibility into usage and spending, difficulty identifying and addressing inefficiencies, managing multi-cloud environments, forecasting future expenditures, and controlling data egress costs.

What are some common reasons cloud costs turned out to be higher than expected?

The most frequent reasons for expenditures that exceed expectations are unoptimized resources, a lack of monitoring, and cost management. Additionally, we should mention inefficient use of reserved instances, data storage and transfer costs, unused or underutilized resources, and lack of automation.

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