Cloud Cost Optimization: 5 Best Practices to Maximize ROI

Cloud Cost Optimization: 5 Best Practices to Maximize ROI

Jan 25

Cloud Cost Optimization: 5 Best Practices to Maximize ROI

With technology forming the backbone of the majority of businesses today, optimizing IT infrastructure costs is one of the top priorities of the CIO/CTO agenda. Along with other benefits that cloud computing brings to the table, the convenience of pay-as-you-go models greatly helps in cost optimization.

Proven ways to effective cloud cost optimization

Many organizations, however, fail to optimize their cloud spends. A study by Gartner indicates that more than 60% of cloud costs are wasted. Fortunately, there are different ways in which we can optimize cloud costs.


Free up unused or unattached resources

The first and foremost step towards cloud cost optimization is to free up unused or unattached resources. While production instances can be auto-scaled to meet the varying demand, shutting down development and test instances during off-hours such as weekends or evenings when developers are not working can significantly lower the cost.


Use discounted instances

Most of the cloud providers provide steep discounts for making a 1-year or 3-year commitment. Discounts range from 20% to 75% depending upon term, instance type, and region. Enterprises rely heavily on these programs whether they’re starting their cloud journey or scaling up their existing infrastructure.


Capitalize on Spot Instances

Spot instances are based on a bidding system and can be purchased for immediate use. However, Spot Instances can quickly go away. They are particularly suited for batch jobs and jobs which can be terminated quickly.


Design workloads for scalability

Scalability is a critical aspect when it comes to cloud cost optimization and helps optimize the compute instances based on the need. Compute power is increased based on workload and released automatically when the demand subsides.


Single cloud or multi-cloud?

A lot of organizations opt for a multi-cloud strategy to avoid vendor lock-in. While it would logically make sense if you are aiming to increase availability and up-time, organizations can risk potential volume discounts by a single cloud vendor.
For example, let’s say a company spends $600,000 on Amazon Web Services, $200,000 on Microsoft Azure, and $200,000 on Google Cloud Platform. If they dedicate their spend with one vendor, they would miss out on reaching the $1 million tier which can potentially bring substantial discounts along with preferred status. Also, having a multi-cloud strategy would lead to a higher cost of switching between platforms paying for network traffic and training resources on multiple clouds.


Additional cloud cost optimization approaches

While we went through some of the common ways to optimize cloud costs, the avenues and possibilities are endless. Additional approaches can also be considered, such as:

  • Adopting a single cloud strategy to move up the tier and avail vendor discounts
  • Utilization of heatmaps to understand the consumption pattern on a real-time basis and automate the scheduling of instances
  • Leveraging Content Delivery Networks to minimize data transfer costs
  • Compressing data before storing



Cloud computing holds disruptive potential. The promise of cost savings on the cloud can be realized if you are paying the right attention to your infrastructure. Optimizing your cloud spend doesn’t have to be complicated. With the Visionet FinOps Platform, we combine automation with the industry’s best practices acquired over a long time to ensure your optimized IT infrastructure expenditure.
Our complimentary 5-day comprehensive cloud cost optimization audit and the full report will save your organization up to 15% or more on your next Azure statement. Get in touch with our experts for a free assessment.





About the Author



Kunya Baramy is a versatile technology leader who blends technical and financial expertise with strong business experience in building Infrastructure and Cloud business. He currently heads the Cloud business for Visionet and is responsible for building, growing, and delivering on the promise of Cloud – something he considers to be his lifelong passion.
Kunya’s professional profile: https://www.linkedin.com/in/kunya/
Get in touch with Kunya: sales@visionet.com