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7 Best Practices for Public Cloud Cost Optimization

信息技术2024-01-18Insight庄***

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Summary of "7 Best Practices for Public Cloud Cost Optimization" Whitepaper

The whitepaper emphasizes the critical role of cost optimization in public cloud usage for businesses across various stages of cloud adoption. It addresses common challenges and outlines strategies for effective cost management:

Challenges:

Access to Cloud Resources: Increased accessibility due to the public cloud allows many departments within organizations to independently initiate cloud services, leading to potential cost overruns.
Unlimited Capacity: Unlike traditional on-premises infrastructures, cloud services offer seemingly unlimited capacity, enabling users to spend more without constraints, which can result in uncontrolled spending.
Workload and Platform Alignment: Managing workload placement across multiple public cloud providers presents complexity, challenging organizations aiming for multicloud strategies.

New Model:

The shift towards a "work-anywhere" model has seen organizations heavily leverage cloud-based access and collaboration tools for remote and hybrid working arrangements. This transformation introduces new risks, particularly in maintaining productivity and preventing unauthorized cloud resource creation ("shadow IT"), which can escalate costs.

Best Practices:

Early Strategy Development: Implementing a cost optimization strategy as soon as possible during cloud migration can prevent unforeseen expenses. Strategic planning should include cost containment from the outset.
Governance Integration: Introduce governance policies early in the cloud adoption journey to manage resource provisioning, usage, maintenance, deletion, and accountability, ensuring controlled costs rather than innovation-focused approaches.
Application Rearchitecturing: Reevaluate and adjust applications when transitioning to the cloud to optimize resource usage and reduce costs, especially for large applications that might be expensive to run on legacy hardware.

These guidelines aim to help organizations navigate the complexities of public cloud usage efficiently, ensuring cost-effectiveness while maximizing the benefits of cloud services.

Whitepaper Incollaborationwith 7BestPracticesforPublicCloudCostOptimization Introduction Whetheracompanyisjuststartingoutwithpubliccloudorhasusedcloudservicesforyearsandreachedahighlevelofmaturity,managingcloudconsumptioncostsandoverallcostoptimizationshouldbeahighpriority.Ifmanagedpoorlyornotatall,cloudcostscanquicklyspiraloutofcontrol—atmanyorganizations,that’spreciselywhathashappened. Formanyenterprises,cloudcostoptimizationisnotafocalpoint.Akeysellingpointofthecloudisexpectedcostsavings,soit’sanaturalassumptionthatcostisnotsomethingbusinessesneedtoworryabout.Inreality,itshouldbetrackedclosely. Whilereasonsforcostoverrunsvary,commoncausesweseeamongclientsaredataegresscharges,unplannedcloudadoption,andmergerandacquisitionactivity.These,amongotherchallenges toachievingeffectivecloudcostoptimization,requireabusinesstoapplybestpracticestorealizemaximumvaluefromcloudserviceinvestments. Cloudcostoptimizationchallenges Differentfactorscomeintoplayforeachuniqueorganizationwhenitcomestooptimizingcloudcosts.Butsomeofthechallengesstandoutasbeingparticularlycommon.Herearefiveofthem. Largenumbersofuserspotentiallyhaveaccesstocloudresources. InthedayswhenorganizationsdeployedprettymucheverythingIT-relatedon-premisesintheirowndatacenters,ITexecutiveshadafairlygoodhandleonwhoboughtandusedwhichresources. Ingeneral,fewerpeoplehadeasyaccesstoresourcessuchasdatacenterserversorstoragesystems.Alimitednumberofuserscouldgainaccess,andCIOshadvisibilityintothis.Allofthismadecostcontainmentmoreattainable. Thepubliccloudisanotherstory.Servicesaremoreeasilyaccessibletomanymoreuserswithinanorganization.Virtuallyeverymajordepartment—marketing,sales,finance,etc.—canstartupcloud-basedserviceswhentheyneedthem,andthosedepartmentshavemanypotentialusersofthoseservices. Clearly,thispresentsapotentialchallengefromacostoptimizationstandpoint. Withcloudresources,thesky’sthelimit. It’snotjustamatterofmoreusershavingaccesstoresources.Thecloud,byitsnature,hasseeminglylimitlesscapacityandpresentsopportunitiesforuserstospendmoreonthoseresources. Oldmodel vs. Newmodel limited+ users limited+ resources total= oversight morecontrol overcosts moreusers + unlimitedresources + minimaloversight = costcontrol challenges Withon-premisesinfrastructures,thetechnologiesinplacehadnaturallimitationsintermsofcapacity.Companieswouldbuyserversofcertainsizes,andcapacitywasallottedasneeded.Ofcourse,capacitycouldalwaysbeaddedwhendemandincreased,butmanagementhadahandleoncosts. Publiccloudservicesdon’thavethesamelimitations,andcompaniesmayexperiencerunawayspendingasdifferentdepartmentspowerupmoreandmoreworkloads. ITdoesnothavethecontrolsit’saccustomedtohavingintermsofsizeorthenumberofresourcespeoplecanconsume. There’smuchfluidityregardingworkloadsandthecloud.TheInsight-commissionedFoundrysurvey,ThePathtoDigitalTransformation:WhereLeadersStandin2023,indicatesthat91%oforganizationscurrentlyrelyonmultiplepubliccloudproviders,with54%ofdata,onaverage,atrespondents'organizationsresidinginpublicorhybridcloudplatforms.1 Yet,evenwithwidespreadcloudadoption,workloadandplatformalignmentranksasatopchallengefororganizationswithamulticloudstrategy,reflectingthecomplexityofassessingandoptimizingworkloadplacements.2 Aboutoneinfiveorganizationssurveyedwithworkloadsinthecloudintendtorepatriatecertainworkloadsto on-premisesmodels.3Thisagainhighlightsthetrial-and-errorsomecompaniesundergotofindtheoptimalcloudpathfortheirneeds. Thework-anywheremodelleveragesthecloud. Theworkforcemodelhasshiftedsignificantlywithinthelastdecade.Firstwewitnessedagradualaccommodationoflimitedcloud-dependentremoteworkpositions,thenarapidpivotin2020toaccommodateaglobalsurgeofremoteworkersinresponsetotheCOVID-19pandemic. Inthewakeoftheglobalpublichealthcrisis,manyorganizationshavefoundnew,long-termmodesofworking,heavilyleveragingthecloud-basedaccess,virtualizationandcollaborationtoenableremoteandhybridpositions. Businesseswantemployeestomaintainorimprovethelevelofproductivitytheyhadwhileworkinginthecorporateoffice,andtodosotheyneedtorelyonthecloudforahostofcommunication,collaboration,securityandmobilityservices.Inaddition,havingahighernumberofworkersusingcloudsolutionsintroducesagreaterriskofshadowITasusersspinupmorecloudresourceswithoutIToversightorapproval,drivingupcostsunpredictably. Carefulconsiderationisneededwhenmovingresourcesbeforerearchitectingthem. Onekeytoachievingcloudandcostoptimizationisrearchitectingapplicationswhenneeded.Becauseorganizationsmaymovetothecloud,thisprocess—whichinvolvesrevampingapplicationsbasedonamodernmicroservicesarchitecture—isoftenoverlooked.Thisisabigmistakefromacostoptimizationstandpoint. Forexample,acompanymighthave100virtualmachinesrunningon-premisesandthendecidetospinupthesame100machinesinthepubliccloudwithoutgivinganythoughttorearchitectingthem. Theproblemis,runningthesevirtualmachinesinthecloudjustastheydidinthedatacenterwilllikelyresultin over-provisioning.Withouttakingthetimetorearchitectthem,acompanymissestheopportunitytousesmallersystemstoreducecosts. Underutiliz

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