Adopting cloud computing and exploring new ways to utilize cloud-based systems are major trends of 2022 in the corporate sector. Cloud-based systems continue to grow in scalability, flexibility, and processing power, improving business efficiency. 

Cloud computing is a more cost-saving and efficient approach to handling business activities than traditional computing and data storage methods. Businesses switch to cloud computing while focusing on cost-saving, not knowing that managing cloud spending can be challenging. 

You can create a comprehensive optimization process that reduces your cloud costs through these strategies.

Utilize Cost Monitoring Tools

Businesses often opt for the easiest and the cheapest path to cloud computing, which later turns out to be a costly mistake. Cloud cost optimization is a new discipline that businesses need to understand to utilize cloud computing efficiently. 

The use of cost monitoring tools, particularly Amazon Web Services (AWS) like cost explorer and budgets, guarantees full visibility into your costs. Using AWS cost explorer, you can analyze past spending and forecast your cloud costs, where AWS budgets notify you when you exceed your cloud cost allocated budget. 

Utilizing the right cost management and monitoring tools also allows businesses to discover areas that can be explored to reduce costs, calculate the effectiveness of load balancing, and identify the least profitable technologies within the cloud.

Prevent Cloud Sprawl

Cloud sprawl is common among organizations new to cloud computing because of poor monitoring of the cloud environment. Cloud sprawl refers to a business with several cloud instances or workloads running, often unknowingly. 

Cloud sprawl increases cloud spending and limits visibility and control over how people utilize company information. Failing to remove loads and cloud services that are no longer part of your overall strategy means you will continue to pay for them. 

The solution to cloud sprawl is to establish effective visibility into the cloud environment and monitor cloud bills and contracts.

Capacity Planning

Businesses optimize their profit margins through capacity management, which is also necessary for cloud computing. Cloud computing being a new phenomenon, many organizations do not have the right resources and understanding to comprehensively identify the resources needed to realize the benefits of cloud computing. 

Even though your business storage and data needs are expected to grow, only pay for the cloud capacity that you use to save money. Nonetheless, IT experts should allocate space for unexpected traffic spikes and load imbalances. Alternatively, auto-scaling using AWS Auto Scaling ensures organizations do not pay for unused cloud capacity.

Prioritize Reserved Instances

Cloud reserved instances refer to a discount billing concept that businesses using the cloud can utilize to reduce cloud expenses. Using reserved instances allows businesses to save on Amazon EC2 costs and is recommended by IT experts for steady and predictable usage. 

Cloud service providers offer reserved and spot instances that are both money-saving. Reserved instances are significantly cheaper than On-Demand resources and are provided by almost all cloud service providers. Businesses can access unused cloud capacity at a discounted price using Amazon EC2 Spot Instances, reducing Amazon EC2 costs.

Limit Data Transfer Fees

Removing data from the cloud involves large data transfer, and cloud service providers often charge between 5 and 20 cents per GB. 5 to 20 cents per GB can be expensive if your business is pushing and pulling terabytes of data.

Large businesses continue to complain about data egress fees, which they can avoid by limiting data transfers. The high cost of data transfer fees prevents businesses from switching vendors, hence, the need to research the right cloud service provider carefully. In addition, adjust your cloud infrastructure to lower the frequency of data transfers.

Utilize Automation Strategies

Could automation allow businesses to save money by eliminating the need for repetitive processes of deploying and managing workloads? Cloud automation tools, such as Puppet, AWS CloudFormation, SaltStack, and Terraform, install, configure, and manage business computing services. 

In addition, the tools automate tasks like backup and storage, code deployment, settings, security and compliance, and configuration, reducing costly errors that can skyrocket your cloud computing costs. Find a reliable cloud automation tool to improve high-end security, provide scalability and elasticity, and allow continuous deployment.

Closing Thought

Cloud computing is fast replacing traditional computing and data storage methods because of the immense benefits. Businesses majorly focus on the cost-saving aspect of cloud computing, not knowing that it can be expensive without property cost optimization techniques. 

Nonetheless, correctly implementing these strategies will allow businesses to realize the benefits while saving costs.