Migrating your organization’s business to the cloud is a major step. Whether you have been utilizing cloud computing for years or just migrated recently, the cost associated with cloud computing can make the benefits it offers seem smaller. To that end, learning how to reduce costs associated with cloud computing, all while maintaining performance levels, can benefit any business.
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Tips for Cutting Cloud Costs
Different organizations will have varying needs for cloud computing, which means no two organizations will have the same costs when it comes to cloud services. However, regardless of a business’s purpose, every dollar spent towards upgrading IT services will cost a business two additional dollars to maintain those services going forwards.
Therefore, a $10,000 migration to the cloud may cost a company $20,000 in maintenance alone, not including additional ongoing costs. Learning how to cut back on these costs with the five following tips can save any organization thousands:
1. Be smarter with cloud migrations
When it comes to cloud migrations, you will have a number of different services available to you. Don’t simply sign up for all these services if your business will not take advantage of what they have to offer. Each additional service will come at a cost, so only use cloud services that are essential to the efficiency of your business.
2. Improve your cloud elasticity
When looking at cloud cost optimization strategies, enhancing the elasticity of your cloud services should always be a priority. The cloud software you use should feature the ability to shrink or grow its capacity for memory, CPU, and storage so that it can adapt to the changing needs of your business.
3. Use heat maps to understand the demand on your system
Saving money on cloud costs is difficult when you don’t know where the bulk of the costs are coming from. Utilize a heat map that outlines where the majority of the demand on your system is occurring so that you can see if the demand is necessary to begin with. If not, you can cut out unnecessary services or cloud features that may be costing you extra dollars monthly.
4. Think about whether multi-cloud or single cloud is better
In some cases, organizations may need to use multi-cloud services to handle the demand of their organization. However, for some companies, single cloud providers may offer a cheaper rate for bundled services that is lower than the cost of paying for a multi-cloud setup.
5. Reduce Shadow IT expenditure
Shadow IT spend refers to dollars spent on IT-related activity that has not been approved, such as personal use. Track any shadow IT activity within your organization and crack down on those performing it in order to reduce unnecessary spend on cloud services.
Cut costs without sacrificing output
While cutting down costs in a business is always a good thing, it’s important to not sacrifice the efficiency and performance of your business through cost-saving measures. All of the above tips can be used to reduce your cloud computing costs while maintaining a high-level of business efficiency. Save money and bolster your organization at the same time.
