14 Expert Tips to Effectively Manage Cloud Costs
Tags: cloud, devops, webdev
Published: 2023-09-20 14:43:50

There is always room for improvement regarding reducing cloud costs. Here are our best tips to get you started.

### **1\. Implement Budget Alerts **

Set up budget alerts using cloud service provider tools like AWS Budgets or Google Cloud Platform's Budget and alerts. This will **notify you when your spending exceeds a predefined threshold**.

### **2\. Automate Scalability **

Use cloud services that support **autoscaling**, such as Amazon EC2 Auto Scaling or Google Cloud's managed instance groups. This ensures optimal utilization of resources based on demand.

**With autoscaling you can ensure you are not paying for unused resources and won't get hit by overcharge costs**. However, autoscaling is not complete unless you are able to do so across Clouds with ease and flexibility. **Control Plane's Capacity AI technology lets you pay for how much computing you use across all Cloud providers.** **Your application usage is billed by millicores and megabytes of memory, and your applications can scale up and down as you need, saving up to 70% of cloud consumption costs. **

### **3\. Automate Identification and Deletion of Unused Resources: **

Autoscale sounds great but it can be a double-edged sword. With endless resources at your fingertips, it can be too easy for developers to allocate additional cloud resources, expecting them to auto-optimize. 

**Creating new virtual machines for testing, cloning data, backups, and snapshots quickly and efficiently is excellent for an agile environment**. Still, you must ensure you routinely purge any unused resources and data.

This is why your [cloud management tool(s)](https://controlplane.com/blog/post/best-multi-cloud-management-tools) of choice should track down unattached volumes, unused IP addresses, or underutilized instances. Regularly running cleanup scripts can help automate this process.

### **4\. Optimize Instance Sizing **

Some resources can't be easily autoscaled and must be correctly provisioned based on demand. Ensure you allocate instances with appropriate CPU, memory, and storage based on the application usage. Tracking any changes in the application over time will help forecast demand and set proper provisioning. 

Use monitoring and analytics to right-size your instances. Tools like AWS Cost Explorer's Rightsizing Recommendations or Google Cloud's Recommender can suggest modifications based on your usage patterns.

Again, this is where **Control Plane, which provides a holistic platform solution, can bring cloud cost optimization different tools, which are Cloud provider agnostic, together under one roof**.

![](https://lh4.googleusercontent.com/6PheYUruCffebDi-udwT4XfigBwBzASulaABaI-wxb21IcEzMj9SKELmLsPXCxhhuWalpQ_k31WTsnlHNk4fvqN5Uvc52cRNRHiM0BlmrGGcXyMBJDCOktA-_upIx-EDaDMehW0kndGIur1wwp5a4CQ)

### **5\. Analyze Savings Plans vs. On-Demand Pricing **

Some vendors, such as [AWS](https://aws.amazon.com/savingsplans/), offer saving plans based on long-term commitment. If you can accurately predict your cloud computing needs, you can save a lot on costs. This tip may seem contradictory to autoscale, but it is also about appropriate usage.

A long-term plan will save money if you run an application with static resource consumption. But even more dynamic applications can be applied to saving plans. **Monitoring your application's resource consumption for a trial period using on-demand services and switching to a savings plan once you have more data is an effective way to save money long-term**. Remember to use cloud service provider calculators to determine if a savings plan is the right choice for your workload.

### **6\. Implement a Multi-Cloud Management Strategy**

Employing a [multi-cloud model](https://controlplane.com/blog/post/why-adopt-a-multi-cloud-architecture) has many benefits, such as avoiding vendor lock-in and reducing downtime risks. However, you must consider the additional costs associated with multi-cloud strategies:

-   **Vendor relationships** -- The more resources you buy from a vendor, the better deal you'll get, so splitting up your cloud resources over multiple vendors may result in higher overall costs.
-   **Visibility issues **-- Managing multiple cloud infrastructures can be challenging as each vendor gives you insights only on their platform. Getting a complete picture of your cloud resources when you're using a single vendor is a simple matter.
-   **Transferring resources** -- Moving your applications between vendors can have significant traffic charges, so you'll need to be considered when choosing which [application to deploy](https://www.jit.io/blog/fundamentals-for-cloud-native-applications-security) on which platform.
-   **Unused resources** -- Ensuring no instances are allocated unnecessarily is more challenging with you must oversee a multi-cloud setup.

**Control Plane offers a competitive advantage over managing a multi-cloud model with our Universal Cloud Identity technology. Our platform will dynamically allocate resources based on your needs from multiple vendors, reducing much of the overhead costs associated with multi-cloud models while maintaining the benefits of uptime and avoiding vendor lock-in.**

### **7\. Idle Resource Management **

On-premise solutions must have available resources in case of a spike in traffic or usage, but cloud computing offers scaling. You may have applications that require dedicated instances, such as [testing environments](https://spectralops.io/blog/top-9-integration-testing-tools-in-2023/) but aren't used 100% of the time. Identify any idle resources and consolidate them to prevent waste.

To manage your cloud costs, **consider implementing auto-shutdown scripts for non-production resources** or use services like AWS Instance Scheduler to automate start-stop times.

![](https://lh5.googleusercontent.com/10pBtYZjhY0sl4ip4urYmEz1g4u480r1eABfWaaOW5XTxQPx_2AnEiD4HC6c4-zOAHO0r8_vOzB7d5rS4-XUQ8okn39dkrUfXY04ZAwGpn05gG3XtfFZzNb11uiaDoCN-rSjX5WGPicFU5ut3JoE7eo)

[Source](https://garba.org/article/general/compute_resource/compute_resource_consolidation_pattern.html)

### **8\. Analyze Reserved Instance Utilization **

Reserved instances are another way to save money if -- and only if -- you have a clear picture of your future usage. A 1-3 year commitment is a significant upfront investment, but you could save up to 70% of the cost. However, any reserved instances sitting idly still cost the total price, so consider carefully when and how to incorporate them into [your cloud strategy.](https://controlplane.com/blog/post/guide-to-cloud-migration-strategy)

**Consider reserved instances only after thorough forecasting of your compute needs**. Monitor reserved instance utilization and modify reservations as needed.

### **9\. Implement Resource Tagging and Cost Allocation**

Tagging resources improves the visibility of your cloud resources. There are many benefits to tagging, but cost allocation is the main benefit for our purposes. Resources assigned to different departments should be tagged as such, enabling you to match cloud expenses to department budgets. **Use tag-based reports to analyze costs and optimize resource allocation**.

### **10\. Manage Shadow IT through Governance**

Implement governance tools and policies to detect and manage shadow IT. **Using [Identity and Access Management (IAM)](https://blog.slauth.io/guide-to-cloud-identity-management) policies can help control access and avoid unauthorized use**.

Employees may be tempted to use your company's cloud resources for personal or unapproved professional use. You can use IT management solutions to gain visibility into shadow IT practices at your organization or monitor individual employees. 

### **11\. Leverage Spot Instances for Non-Critical Workloads **

Like you, cloud vendors don't like having idle infrastructure. If nobody is paying for an instance, it goes to waste. Many vendors offer spot prices on spare instances for steep discounts to prevent this waste. Take advantage of these discounts and **use spot instances for fault-tolerant and flexible applications**. Also, consider using spot instance automation tools to manage interruptions and maintain workload continuity.

### **12\. Ensure Vendors' Compliance with Security and Privacy Standards **

As your organization grows, you will be bound by compliance regulations. Having to investigate vendor compliance in addition to your organization's compliance is a costly process. When choosing vendors, ensure they [comply with any regulatory requirements](https://controlplane.com/blog/post/multi-cloud-security) you may need.

**Evaluate your cloud service vendors for compliance with standards like ISO 27001, GDPR, and HIPAA**. Non-compliance can lead to legal issues and financial penalties.

### **13\. Consider Serverless Architecture for Event-Driven Use Cases**

Serverless computing like AWS Lambda or Google Cloud Functions can be cost-effective for intermittent or event-driven workloads.

Unlike instance allocations, **serverless architecture vendors only charge you for traffic and storage**. In addition, serverless environments (can) save you time due to no setup requirements, saving you the need to allocate personnel for infrastructure management. Employ serverless architecture where appropriate. Control Plane supports serverless mode, giving you more flexibility and enabling you to pay only for what you need. 

![](https://lh4.googleusercontent.com/w81lTk4fXQuQCG8jwljQ8PspnAuO5KGzG9QuHxfik99Tg8Ep58GL2tWQe9ism2y58Lzw40o_5-Ek9RSCD_62AM6z2DUes8YXMShN992bxMiWpWgZ8U9COFINhlYFKD6bIo9zTSXdc676uFZ8SCIjMi8)

### **14\. Implement a Data Lifecycle Policy**

Effective data management is mo re than provisioning and scaling data storage. Data lifecycle policies can automatically delete old data when it is no longer needed. Data migration may have steep traffic costs, but a lower cost per GB may be worth the price. But most importantly, data discovery is critical to understanding where you can reduce costs. After all, if you don't know what data you have, you can't know how to handle it.

**Implement policies for your data storage that moves older or infrequently accessed data to more cost-effective storage tiers**. Services like AWS S3 Lifecycle policies or Google Cloud's Object Lifecycle Management can automate this process.

**Reap the benefits -- Avoid the pitfalls**
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A multi-cloud strategy can have many benefits, but you may spend more than you use without proper resource allocation. Minimizing unused resources and setting a realistic budget for your cloud investment is a start, but it's only the beginning. **As your company scales and your team's workload grows, staying on top of your cloud costs will be increasingly challenging. **

Control Plane enables you to **mix and match any service you need from AWS, GCP, and Azure, giving you the power of choice and complete control** to use as many or as few cloud resources as you need. **With cloud repatriation, you can move your workloads anywhere and still consume your cloud vendors' services. Ready to enter a new world of cloud computing? [Sign up here.](https://console.cpln.io/signin?__hstc=66238705.2c92100d31bb2c97b8d1dcf3dd55ed4f.1684653395181.1695014478671.1695220636685.15&__hssc=66238705.1.1695220636685&__hsfp=2632723152)  **