Four Cost Optimization Hacks for the Cloud

    October 5, 2016

    By Luis Colon

    IT administrators can follow these four tips to increase their company’s cloud performance while minimizing IT spend.

    With so much of the cloud computing conversation still cloaked in obscure tech language, it can be hard for an IT administrator to implement the technology in a cost-effective way. For companies moving their apps over to the cloud, we’ve compiled four simple tips to optimize costs and eradicate wasteful spend.

    Cost Optimization Starts at the Negotiation Table

    Like any big purchase, you should look beyond the sticker price when shopping for cloud infrastructure. Before proceeding with a cloud service provider, consider three cost factors: the provider’s service-level agreement, the cloud service base price, and the cost of additional services. Remember to compare these costs between service providers and negotiate each of them before finalizing any deal.

    Additionally, you can achieve contractual leverage by having a good idea of your company’s resource requirements. Before negotiating the service-level agreement, run a pilot test to determine your needs.

    If you’re having trouble at the negotiating table, the difficulty may be expressing IT needs in business terms. If this is the case, a business value dashboard like the Vityl Dashboard can help you determine how the cloud fits into your company’s broader budget.

    Identifying the Right Apps for the Cloud

    Not all applications are well-suited for the cloud — in fact, roughly one-fifth of all cloud-hosted apps would cost less if hosted on traditional servers. In general, apps that don’t rely entirely on local resources run more cheaply in the cloud, while those that do should remain on-premises.

    One way to determine which apps you should move to the cloud and which you should host internally is by utilizing a performance monitoring platform like TeamQuest Surveyor. If a specific app is running poorly after being moved to cloud, you may benefit by returning it to an on-premises server.

    Planning for Location to Reduce Costs

    Another factor that should determine whether to move certain apps to the cloud is user location. One of the main benefits of cloud computing is that apps are geographically dispersed, so employees working in different offices (or different countries) can easily access them. This benefit is largely nullified if an app is only used by employees in a single office. In cases like these, it is often cheaper to host apps on-premises. Don’t feel that moving to the cloud needs to be an all-or-nothing prospect — cost optimization requires that apps are approached on a case-by-case basis.

    The Sweet Spot Between Underinvesting and Overspending

    As we’ve covered in the past, the common framing of cloud computing as an easy-to-turn-on utility service is a bit misleading. While the cloud is scalable, it’s often difficult for companies to figure out just how much storage they need — after all, none of us grew up with the technology, and many IT leaders need to implement cloud on the fly. This results in a world where 60% of cloud software servers can be reduced or terminated. When determining server need, companies should use a predictive analytics platform like the TeamQuest Predictor, which can reduce wasteful spend and optimize server productivity.  

    Unfortunately, the confusion surrounding cloud spend doesn’t just arise from server quantity. IT administrators must choose whether to invest in special features such as geographic diversity and premium hosting or to proceed with a more bare-bones setup. Vityl Dashboard can help determine how these features affect your company’s budget, ensuring that you don’t invest in unnecessary add-ons.

    IT administrators shouldn’t feel that moving over to the cloud will lead to wasteful spending. These four tips, paired with TeamQuest’s software suite, can help any company implement a cloud computing infrastructure that doesn’t break the bank.

    Category: cloud-computing