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3 ways to optimize the cost of public cloud
3 ways to optimize the cost of public cloud

February 20, 2023

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Since the beginning of the pandemic, public cloud adoption has increased significantly. Cloud adoption has been gaining momentum and is now popular across industries that are looking to drive innovation and enterprise transformation, both inside IT and across the business. Given its widespread adoption, there is also a perception that cloud costs are increasing significantly. 

With an innovative and effective pricing model in the cloud, it’s necessary to have some of these best practices in place:

  • An efficient governance mechanism to ensure that existing cloud resources are optimally utilized based on smart architecture decisions
  • Continued adoption of evolving capabilities of the cloud 
  • An innovative combination of commercial models provided by the cloud, making cloud adoption financially viable 

To adopt the cloud with fiscal discipline, we recommend organizations follow these three measures.

  1. Architect for the future 

Decide the cloud adoption strategy to maximize value by adopting cloud-native capabilities as much as possible. Every hyper scaler recommends certain standards, guard rails, and a framework to help standardize and govern the overall adoption. The architecture on the cloud needs to be adaptive enough to embrace newer patterns as the journey evolves. 

Operational excellence ensures that response to events is effective and helps standardize and expedite daily operations. Performance engineering and security teams must work to ensure that cloud capabilities can scale to meet business demands, and that risk and compliance issues are investigated when needed. The architecture reliability ensures that workloads continue to perform their intended functions.

With all these, sustainability can play a part and help build a green IT ecosystem, because with every workload moving to the cloud, we are reducing dependency on data centers.

  1. Leverage the commercial models provided by hyper scalers

Multiple pricing models are available to cater to the needs of the customers and their workloads. These pricing models include:

  • On-demand pricing: Use cloud capacity when it is required
  • Reserve pricing: Arrange for long-term, predictable workloads at a cheaper price 
  • On-the-spot pricing: Benefit from the lowest possible pricing while agreeing to limited SLAs

Due to the dynamic nature of how businesses operate, there is no “one-size-fits-all” model. To arrive at the right financial model, take into consideration below mentioned factors: 

  • Linearity in pricing
  • Long-term manageability and commitment
  • Instance compatibility with varied workloads
  • The need for dynamic market demand
  • Volume discounts for workloads
  • Cost predictability
  1. Configure cloud resources intelligently

Some best practices to use cloud resources effectively include:

  • Leverage the cloud’s native and new capabilities
  • Monitor and track usage
  • Have fiscal discipline with chargeback/show-back consumption mechanisms 
  • Leverage the automation that comes built into the cloud to eliminate waste

Cloud computing environments provide a diverse set of resource pools to enable information processing, storage, networking, distribution, and archival needs.

A working model for cloud configuration is trending towards efficient and effective usage of processors, computation, memory, storage, scale, network, and automation. Success shall be in arriving at an optimal relationship among these ecosystems, with cost as a constraint. With the industry focusing on sustainability, there also needs to be a shift to focus on techniques and solutions that help save energy and reduce operational costs.

Looking ahead

Cloud is here to stay, scale and drive business transformation. But success doesn’t come just from picking out the right technology or finding the right cost model. It is equally important to follow the right digital strategy, adopt an appropriate operating model, design a future-oriented cloud architecture, continuously monitor for risks, and adhere to respective regulations. The result if you do this well? A future-proofed business.

About the author:

Krishna Mohan

Vice President and Global Head, AWS Business Unit, Tata Consultancy Services

Click here to view author’s full profile.

LinkedIn: Click here

 


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