Cost optimisation in the cloud: What do you need to know?

Consuming cloud services can create a host of new problems.

Cloud technology and the multiple platforms available today means that pretty much everything is run in the cloud these days. With the promise to drive business agility while also reducing costs, most enterprises have migrated to the cloud in large numbers. And whilst it’s true to say that cloud infrastructures offer new features that expand their capabilities, consuming cloud services can create a host of new problems – not least of all having to manage complicated bills reflecting differing global permutations.

Indeed, many enterprises are using a business management discipline and analytics software (FinOps) that assists in calculating the costs of public cloud services provided by various vendors. In this way, enterprises can better plan, budget and forecast their spending requirements for cloud consumption. With any anticipated move into the cloud, the real challenge lies in creating an environment that is both effective and efficient, especially in terms of setup and running costs.

With the well-known cloud offerings from the likes of Amazon Web Services or Google Cloud for example, the approach to cloud cost optimisation can be looked at from a number of angles, irrespective of the service chosen. Here are some considerations that will help you to understand the factors involved in optimising your cloud costs.

Cost variables

Data Transfer: The cost of transferring data into your cloud is usually free. But transferring it out is another matter. So, in the same way you should design single-cloud systems to minimise the cost of internal data transfers, you should also aim for a cost-efficient multi-cloud architecture.

First, you’ll need to be mindful that outbound network charges vary from vendor to vendor. And also that, at individual vendor level, the cost of data transfer between different cloud regions varies from geographical region to region. For example, Google Cloud Platform charges far less for data transfers between its regions in the US than elsewhere in the world. Similarly, Amazon users pay lower rates for transfers between US East and US West than between any other two regions. In order to achieve the best balance between cost and performance, it pays to be strategic when selecting regions across your multi cloud.

Compute and Storage: Each cloud vendor offers a range of different instance types and storage services aimed at different use cases, cost requirements and performance expectations. So finding the best fit for your workloads can be a complex challenge—all the more so when comparing resources across several clouds. On top of that, pricing structures vary between vendors, where like-for-like resources may be charged differently. Cost comparisons can get particularly difficult when weighing up your storage options. Depending on the nature of the service, charges could be based on several factors, such as the number of read and write requests, the amount of data you transfer out of storage and the amount of capacity you provision. Don’t forget that vendors tend to structure their charges into pricing tiers, where you pay lower rates at higher levels of resource consumption. So, on the one hand a particular vendor is a better choice when your capacity requirements are low, but that same vendor becomes pricier as your applications scale. – Read more

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