Cloud Cost Management best practices

Successful FinOps—cloud financial management—a set of business practises that relate controls over the variable expenditure model of cloud IaaS to financial accountability—is the ultimate result of cloud cost optimization. 

How to Begin Using Cloud Cost Management

The basic cost optimization tactics presented in the recorded course and the text below bridge both areas of concentration and can help your company save money right now.

  1. How to save money on computing in AWS by rightsizing your instances and strategically using Reserved Instances and Savings Plans to get even more significant reductions.
  2. How to find and fix hidden line items that might be contributing to your excessive cloud spending
  3. Use strategies like show back/chargeback and automated reporting to create a culture of cost awareness and improve cloud expenditure consciousness across departments.
  4. The recorded training video includes a recorded Q&A session, which answers frequent cloud cost management issues.

Four practices to have cost-effective cloud management

Thousands of line items in AWS cost and usage reports are scanned and interpreted by some of the world’s top enterprises using cloud cost intelligence technology. However, simply reading and comprehending a cloud bill is pointless unless you take steps to reduce overspending.

1. Instances may be purchased utilizing Savings Plans and Reserved Instances. 

On-Demand, Scheduled, Reserved Instances, Savings Plans, and Spot are a few of the cloud computing buying possibilities. Savings Plans and Reserved Instances, which are excellent for long-running and steady-state workloads and give up to a 70% savings over On-Demand pricing, are recommended for enterprises wishing to minimize their computing budget beyond rightsizing. 
However, even the most intelligent firms find it challenging to develop a wise purchasing strategy. Large organizations cannot optimize the usage of Savings Plans and Reserved Instances because they lack insight into their coverage and use in an optimal condition. It is feasible to take advantage of these discounts and obligations individually, but automation is essential at any scale.

2. Create a Cost-Awareness Culture

No cloud optimization project will be successful unless all stakeholders are on board. Cloud Centers of Excellence or FinOps practises committed to developing standardized cloud best practices—Cloud Operating Models—created by our most successful customers. Densify helps boost cost awareness cross-functionally and across lines of business with highly differentiated information that encourages transparency to expedite these cultural shifts in enterprises. These reports can assist in uncovering hidden waste and even unsafe spending practices. Decision-makers can then fund enterprise-wide programmes, such as chargeback, to ensure that cost optimization is a top priority for all stakeholders and reward employees who continue to rightsize proactively.

3. During provisioning, automate infrastructure rightsizing

Your Cloud Operating Model allows you to experiment, create, and scale infrastructure quickly. Using infrastructure as code (IaC) technologies like AWS CloudFormation or HashiCorp Terraform to automate infrastructure provisioning and eliminate manual activities and mistakes is one of the cornerstones of working wisely in the cloud. The ideal solution to rightsize your infrastructure is to automate the management process fully and include it into your cloud CI/CD pipeline.

4. Dispose of any unused elastic IP addresses.

All AWS accounts get up to five Elastic IP addresses per region by default, which ensures that software and instances are available in the event of a failure by immediately remapping their IP addresses to other instances. However, AWS charges you for these Elastic IP addresses when idle or not in use. Keep an eye out for vacant IP addresses, or use Densify’s cloud cost intelligence to automatically discover unused and idle Elastic IP addresses. 

Conclusion

When functioning in the cloud, successful businesses build best practices. Densify dedicates a professional team of Cloud Advisors to help our clients fine-tune their cloud operating models and FinOps procedures. The mission of this team is to enhance cloud spend awareness and ask challenging questions to help our clients develop good cloud spending habits. 

Have further queries regarding cloud cost management, Get Your Free  Consultation. 

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