Are you struggling to find the IT budget for new business initiatives? It’s easy for companies to tie up excess spend in current tooling without realizing it. According to Gartner, without cloud cost optimization, businesses could be overspending by more than 70% in the cloud.
But what’s the best way to cut costs and free up your spend? According to our cloud cost optimization experts, there are six things you can do to help improve your infrastructure while freeing up spend for other business initiatives.
Use a Cost Dashboard to track and understand costs
With cost allocation tags you can create a cost dashboard to get a granular look at costs by region, service, and other important factors. This will not only give you the ability to track spending but also identify the baseline cost.
Monitor Cost Trends
Certain cost trends are indicators of cloud architecture patterns that can lead to cost concerns. Knowing what these look like upfront can prevent long-term cost consequences.
Looking at Cost vs. Utilization
Without automation, it can be easy to commit errors like horizontal and vertical scaling, which ultimately result in using the wrong resources or not having the right resources for the right price. By tracking your utilization and turning off old instances, you can find simple ways to save on wasted resources.
Examine Cost Ratios
Cost ratios are dependent on your environment, but can be a valuable way to gain insight into the health and efficiency of your infrastructure. Ratios show where optimization may be valuable and where a change in strategy might be necessary.
Utilize a Tagging Strategy
Tagging allows you to separate and differentiate costs by a product or service, allowing you to see the differences in usage. Managing tags can keep accounts in order and identify services that may need optimizing.
Reserved instances can be valuable financial instruments to maintaining a low AWS spend. Having a reserved instance strategy allows you to cut costs by planning for your architectural needs upfront.
Interested in learning more about our six tips to cut AWS costs and optimize your AWS spend? Download our eBook today!