Steps for Reducing Cloud Waste to Improve Your Bottom Line

The cloud has revolutionized the way businesses operate. From scalable storage to on-demand processing power, these virtual resources offer unmatched flexibility and agility. 

But with great power comes great responsibility (and sometimes, a hefty bill). Just like any utility, cloud services can be susceptible to waste, leading to unnecessary expenses that eat into your bottom line.

Studies show that about 30% of the money spent on the cloud is wasted.

The good news? Cloud waste is entirely preventable. By implementing a few key business IT strategies, you can optimize your cloud usage, reduce costs, and see a significant improvement in your finances. 

Here’s a breakdown of the steps you can take to become a cloud efficiency champion:

1. Identify Underutilized Resources

The first step to tackling waste is understanding your cloud environment. Many companies unknowingly pay for resources they don’t fully utilize. This could be anything from idle virtual machines (VMs) running 24/7 to storage accounts filled with forgotten data.

Cloud providers offer a wealth of cost management tools that provide detailed insights into your resource usage. Leverage these tools to identify:

• Idle VMs: Run reports to see which VMs are consistently underutilized. Consider scheduling automated shutdowns for non-peak hours or downsizing their specifications.

• Unused Storage: Analyze cloud storage to pinpoint inactive data. Archive rarely accessed data or consider deleting obsolete information based on compliance regulations.

• Overprovisioned Resources: Many cloud services offer pay-as-you-go models. Evaluate your current resource allocations and adjust them to match your actual workload demands.

2. Rightsize Your Cloud Footprint

Imagine buying an extra-large popcorn when a medium would do. You end up throwing out the extra after the movie. That’s essentially what happens with overprovisioning cloud resources. While it might seem like having extra capacity ensures smooth operation, it leads to unnecessary spending.

The concept of “rightsizing” involves allocating the optimal amount of resources for your specific needs. This means:

• Matching VM Types to Workloads: Different workloads require different processing power and memory. Analyze your applications and choose VM types that provide the necessary resources without exceeding your needs.

• Scaling Up and Down Dynamically: Utilize auto-scaling features offered by most cloud providers. These features automatically adjust resource allocation based on real-time demand, ensuring you only pay for what you use during peak traffic hours.

3. Embrace Automation: Let the Machines Do the Legwork

Manual cloud management is a recipe for inefficiency. By automating routine tasks, you can free up your team’s time and reduce the risk of human error. Here’s how automation can help:

• Automated Shutdowns and Startups: Schedule VMs and other resources to automatically shut down during off-peak hours and power up when needed. This eliminates the need for manual intervention and ensures you’re not paying for idle resources.

• Patch Management: Automate security patch deployments for your cloud instances. This not only improves security but also reduces the risk of human error during manual patching.

• Resource Tagging and Cost Allocation: Implement a system for tagging cloud resources with relevant information like department or project ownership. This simplifies cost allocation and helps identify areas for potential optimization.

4. Cultivate a Cloud-Conscious Culture

Optimizing cloud usage isn’t just a technical endeavor; it requires a cultural shift. Here are ways to encourage responsible cloud practices within your organization:

• Educate and Empower Teams: Foster a culture of cloud cost awareness through training programs. Educate teams on the impact of their cloud usage on the bottom line.

• Promote Ownership and Accountability: Encourage teams to “own” their cloud resources. This could involve implementing chargeback models where departments are financially responsible for their cloud spending.

• Set Clear Budgets and Limits: Establish clear spending limits and budgets for different departments or projects. This provides a framework for responsible resource allocation.

5. Continuously Monitor and Optimize: It’s a Marathon, Not a Sprint

Cloud optimization is an ongoing process. Here are some best practices to ensure continuous improvement:

• Schedule Regular Cost Reviews: Set aside time for regular reviews of your cloud spending reports. Analyze trends and identify areas for further optimization.

• Leverage Cloud Cost Management Tools: Many cloud providers offer sophisticated cost management tools with anomaly detection and resource optimization recommendations.

• Stay Updated on Cloud Pricing: Cloud pricing structures can evolve over time. Stay informed about new offerings and pricing models to ensure you’re taking advantage of the most cost-effective options.

By following these steps, you can transform your cloud usage from a cost burden to a strategic advantage. A well-optimized cloud environment not only saves you money but also frees up resources for innovation and growth. 

Need Help Optimizing Your Cloud Software Tools?

Today’s offices use more cloud applications than ever before. It’s difficult to keep a handle on all those apps, their costs, and their security without some expert guidance.

Unbound Digital has a team of cloud professionals that can help you leverage your business apps to the fullest, keep them secure, and ensure costs stay under control.

Contact us today to schedule a consultation. Call 423-467-7777 or reach us online.