Public cloud spending has dramatically grown this year, but so has cloud waste. Being able to master a cloud cost optimization strategy will help you decrease cloud waste and optimize your cloud spend. However, there are still several misconceptions about what cloud cost optimization is and how it works. Here are 4 common myths about cloud cost optimization.
Myth #1 – Cloud cost optimization means cost-cutting
By definition, cost optimization is the proactive strategy of driving spending and cost reduction while also maximizing business value. While cutting costs will drive down costs, it may result in worse outcomes such as loss of productivity, missed deadlines, and incomplete projects for your users. Another difference is cost cutting is a one-time action that results in immediate results. Whereas cost optimization is a continuous effort focused on decreasing costs and maximizing value.
Myth #2 – Pausing spending is a method of cloud cost optimization
While pausing spending may result in decreasing costs temporarily, in the long run it is just delaying the costs. In other words, you are just kicking the can down the road. Being able to optimize cloud costs should be focused on areas where the cost can be reduced or eliminated. Next time this idea comes up, ask if it is really going to help or just delay the inevitable?
Myth #3 – Results of cloud cost optimization won’t be seen for several years
Results of cloud cost optimization can be seen over time, but you can start to see some results in the beginning depending on how you optimized your strategy. While it won’t be realized, there are tools available that can provide potential saving estimates in terms of months and years (assuming everything remains the same). This can at least give you an idea of what to expect. You can also compare that number to your actual cost savings in the future to get evaluate your strategy and understand what worked and what didn’t work. Remember, cost optimization is a continuous strategy, not just a one-time action.
Myth #4 – Cost optimization is a one-time process
Cloud cost optimization is not a one-time action nor is it a problem you can solve overnight. It takes time to develop a strategy. Cloud cost optimization is a continuous process and a strategy should be developed around it to ensure the company not only continues to optimize current costs, but also any future costs.
As mentioned, cloud cost optimization doesn’t stop here. It’s a continuous process. If you don’t already, make it a point to review, evaluate, and make updates as needed at least quarterly, if not monthly. Keep in mind, this doesn’t mean going in and changing settings every time. Sometimes that can just mean checking for newer virtual machines or making sure the resources match the usage. We recommend reading 5 mistakes you don’t want to make when optimizing Azure. This blog is a good starting point for what to check and what to not overlook.