The cloud is quickly becoming one of the most expensive resources for modern companies to manage. Roughly 80% of organizations that rely on it spend more than $1.2 million annually on the associated services. Furthermore, Gartner projects that public cloud spending will surpass 45% of total enterprise-related IT spending by 2026.
While many businesses fail to keep their cloud costs in check, your company doesn’t have to be one of them. With the right cloud cost management solutions, you can ensure the maximum return on your investment. Ready to get started? Read on.
What Is Cloud Cost Management?
In this fast-paced digital age, businesses are shifting operations to the cloud to preserve their competitive edge, speed up innovation, and revolutionize relationships with clients. Because cloud computing is such a vast landscape, though, the associated expenses can balloon rapidly. This is where cloud cost management solutions come into play.
Cloud cost management helps organizations deploy the most cost-effective measures possible when harnessing the power of cloud technology. Here are some of the most widely applied cloud cost management solutions:
- Right-Sizing: Confirm the platforms you set up have the appropriate capacity for the requirements of your company without being excessive.
- Responsive Scaling: Only pay for the software you actually use given the current state of operations, and do not scale up until doing so is necessary.
- Rearchitecting: Instead of mimicking your old, on-premises infrastructure in the cloud, take advantage of more innovative architectural possibilities like platform as a service (PaaS) to redesign your cloud architecture more efficiently.
- Strategic Operating: Schedule non-essential programs to shut down when not in use, like on nights and weekends, instead of running them continuously.
- Eliminating Nonessentials: There’s no reason to maintain a program that the company doesn’t use. (An added benefit: Since every piece of software has vulnerabilities, removing unnecessary programs will bolster your cybersecurity.)
- Monitoring Usage: Establishing usage guidelines after determining your employees’ habits is a critical component of cloud cost management.
What are Misconceptions of Cloud Related Cost Savings?
A common misconception of the cloud is that it leads to instant savings. Unfortunately, this is usually not the case. (Frustrating, we know.) It takes time, money, and some reconfiguration to get through the migration process. Sometimes you even need to rebuild apps to fit the cloud framework which means you are paying for it twice until migration is complete. Many companies will not start seeing savings until 4-6 months after beginning the migration process. So, if you don’t see cost savings right away, give it time.
However, during the process of migration and after, you can track your cloud activity to pinpoint areas costing you more than they should. If you are a Microsoft user, Microsoft’s Cost Management features can be turned on from your Azure portal and can be accessed within 48 hours. With just a few clicks you can start tracking your Azure spending and usage.
Easier said than done, right? It can be difficult to make decisions about where to cut back, what to consolidate, and what to completely remove. If implementing a Cloud Cost Management strategy feels overwhelming, consider working with a Cloud Solution Provider (CSP) to help with implementing, managing, and making decisions surrounding the cloud. Some providers, like PEI, offer cloud consulting services to discuss cost management solutions.
Getting Started with PEI’s Cloud Cost Management Service
Ready to deploy cloud cost management solutions that are tailored to your organization’s unique needs? Here’s a step-by-step guide for doing just that:
1. Reaching Out
Reach out to our dedicated team at PEI to express your interest in our cloud cost management service. Our experts are ready to assist in optimizing your cloud expenses and will guide you through the entire process of implementing our Azure Optimization dashboard solution.
2. Initial Consultation
We will schedule an in-depth meeting so we can discuss your specific requirements, business objectives, and current cloud infrastructure. This consultation will serve as the foundation for your cost management strategy.
Once we’re underway, you will receive ongoing support from PEI’s sales team to ensure a smooth onboarding experience. Along the way, we will answer any questions you have regarding the service, pricing, or integration process.
3. Dashboard Implementation and Assessment
Our certified Azure Architect Experts can work with you to set up our Azure Optimization dashboard, which will be configured to conduct a meticulous assessment of your cloud environment. This analysis involves scrutinizing your architecture and usage patterns as well as identifying key cost drivers. By doing so, we will gain valuable insights into your cloud cost landscape.
4. Data-Driven Recommendations
The Azure Optimization dashboard uses over 600 data points and architectural definitions to generate data-driven recommendations and cost-saving strategies personalized to your cloud setup. These recommendations are configured to follow the Well-Architected and Cloud Adoption architectural frameworks and may encompass a range of actions, such as rightsizing instances, eliminating idle resources, implementing automation, and making the most of reserved instances.
5. Review and Remediation
After your Azure assessment, you’ll work with one of our certified Azure engineers to prioritize initiatives and craft a strategy for reducing your spend. This strategy can be implemented by your engineering team or ours! The data you collect in your dashboard is always accessible to your team to drive efficiencies on your own.
6. Seamless Implementation
If your team is small or looking to offload some cloud cost management tasks to save time for other initiatives, our Azure Architect Experts can take the wheel and work closely with your own team to implement the cost management strategies. This process entails configuring cutting-edge tools, establishing budgets and alerts, and deploying efficient monitoring mechanisms.
7. Training and Knowledge Transfer
As part of the implementation process, we will provide comprehensive training and knowledge transfer so your team will be well-equipped to monitor and manage cloud costs effectively going forward. This empowers your organization to take a proactive approach toward cost optimization.
8. Continuous Ongoing Support
At PEI, our commitment to your success extends well beyond the implementation phase. We will provide continuous and dedicated support to ensure that your cloud costs remain optimized over time. Our team is readily available to address any new challenges or changes in your cloud environment, adapting our strategies as needed.
9. Periodic Reviews and Optimization
To stay ahead of evolving cloud requirements and cost dynamics, we’ll conduct quarterly reviews of your cloud cost management. These reviews will help us identify potential areas for further improvement and ensure that your cloud expenses continue to be efficiently managed.
10. Growth and Scalability
As your business grows and your cloud needs evolve, we will be there to support you at every step of the way. Our scalable solutions can adapt to accommodate your changing requirements, providing you with peace of mind as you focus on your core business goals.
Turn to PEI for Tailored Cloud Cost Management Solutions
Moving your operations to the cloud will save your company money if managed and carried out properly. It will also help your organization become more competitive and adaptable in the ever-evolving digital landscape. When you’re ready to get started, reach out to PEI. We strive to foster a long-term relationship with every client, so we can ensure everyone’s success for years to come.