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Prioritising Cloud Optimisation

As the costs of cloud-based services begin to outstrip traditional on-site licensing and standardised services increasingly become the norm, CIOs in 2023 are shifting their focus. The priority now is on optimising cloud use and reducing costs.

The whirlwind of digital transformation and rapid cloud adoption that dominated the past few years has yielded a more thoughtful, rationalised approach to service delivery. Both businesses and consultants are now savvier in using cloud services, focusing on aspects like negotiating contracts, curbing excessive use, and refining applications.

With growing experience in cloud technology and accumulating data on your cloud usage, you will start identifying areas of inefficiency. These are the areas where tweaks and improvements can lead to significant cost savings.

Strategies for cost optimisation include:

  1. Moving some resources back to on-premises or hybrid setups,

  2. Re-negotiating contracts,

  3. Shifting to multi-cloud deployments to find the best bargains,

  4. Limiting storage,

  5. Reducing consumption by eliminating seldom-used or underused applications and environments,

  6. Incorporating automation and orchestration tools,

  7. Engaging in Cloud FinOps to assess cloud consumption and pinpoint areas for cost optimisation,

  8. Creating cloud centres of excellence to increase service adoption maturity and reduce cloud consumption spending,

  9. Making the budget approval process more data-driven and meticulous,

  10. Pushing for stronger and more aggressive ROI and TCO to meet CFOs' goals.

For example, implementing automation and orchestration tools is an effective way to optimise cloud use. These tools can automate routine tasks and improve workflow efficiency, thereby cutting costs by reducing the need for manual intervention and minimising human error.

Moreover, by strengthening monitoring and analytics capabilities, you can gain a deeper understanding of your cloud usage and spot opportunities for cost reduction. Tools like Azure Monitor or AWS's CloudWatch can provide valuable insights into your cloud infrastructure and help optimise usage.

Another strategy involves leveraging multi-cloud and hybrid environments. This can offer negotiation advantages, increase flexibility, improve cost control, and provide redundancy and enhanced disaster recovery. Using a combination of different cloud providers, you can tap into each provider's unique strengths and tailor a solution to meet your needs.