Suffering from High Cloud Costs? Try These Tips to Eliminate Cloud Waste

Suffering from High Cloud Costs Try These Tips to Eliminate Cloud Waste

If you’re like many Australian businesses, you’re doing a lot of your work in the cloud. Many companies are using more cloud services today than they did just a few years ago. 

Between 2022 and 2026, public cloud spending in Australia and New Zealand is expected to increase by 83%.

There is a big benefit from working with cloud-based tools. They provide scalability, flexibility, and accessibility like never before. They are also often less expensive than purchasing on-premises software licenses for an entire office.

However, the soaring costs associated with cloud services have become a cause for concern. Businesses often find themselves struggling to find ways to reduce creeping cloud costs without hurting their team’s productivity. A good place to find those savings is by targeting cloud waste.

Cloud waste refers to the inefficient and unnecessary consumption of cloud resources, leading to higher-than-needed cloud costs. It occurs when companies allocate more resources than required, either due to overprovisioning, underutilisation of existing resources, or inadequate optimisation of cloud infrastructure. 

In essence, cloud waste represents a misalignment between the resources allocated and the actual demand or usage. This phenomenon can result from factors such as outdated configurations, orphaned user licenses, or a lack of visibility into resource consumption patterns. 

Let’s explore practical tips to eliminate cloud waste and rein in those high expenses without hurting your customer service or productivity.

Valuable Tips for Reducing Cloud Waste

Tip #1: Regularly Audit Your Cloud Usage

Conducting regular audits of your cloud usage is the first step in identifying areas of inefficiency. Australian businesses can leverage cloud management tools to gain insights into their resource consumption. By understanding how resources are allocated and utilised, businesses can make informed decisions about where to cut costs without compromising performance.

Tip #2: Embrace Reserved Instances

Many cloud service providers offer the option of reserved instances, allowing businesses to commit to a one- or three-year term in exchange for a significant discount. This strategy is particularly effective for predictable workloads, providing stability in pricing and reducing costs over time. By strategically utilising reserved instances, businesses can achieve considerable savings on their cloud bills.

Tip #3: Implement Automation

Automation is a powerful tool for optimising cloud usage. By automating routine tasks, such as resource provisioning and scaling, businesses can ensure that resources are utilised efficiently. Companies can leverage automation to dynamically adjust their infrastructure based on demand, avoiding overprovisioning and, consequently, excessive costs.

Tip #4: Monitor Idle Resources

Identifying and addressing idle resources is crucial for eliminating cloud waste. Regularly monitoring the usage patterns of various business applications allows businesses to reduce or eliminate those that are underutilised or not used at all. Actively managing and terminating idle resources can lead to significant cost savings.

Tip #5: Streamline User Accounts

It’s not unusual for organisations to be paying for unused user accounts or overpaying for unnecessary administrative accounts. Companies should review and document all user accounts they are paying for in each cloud tool. They should then do two things:

  • Remove any unused/orphaned accounts from their subscription plan
  • Downsize any admin accounts for users who do not actually need administrative privileges on a regular basis

Streamlining user accounts by downsizing and eliminating orphaned accounts can offer significant savings as well as improved data security.

Tip #6: Leverage Cloud Cost Management Tools

Numerous cloud cost management tools are available to help businesses monitor, analyse, and optimise their spending. Australian organisations can benefit from tools that provide detailed insights into their cloud expenditure, enabling them to make data-driven decisions and implement cost-saving measures effectively.

Tip #7: Implement Tagging for Resource Allocation

Implementing tagging for cloud resources is a practical way to categorise and allocate costs. Businesses can use tags to track expenses by department, project, or any other relevant criteria. This granular visibility enables organisations to identify which areas contribute most to their cloud costs, facilitating targeted optimisation efforts.

Tip #8: Train Your Team on Cloud Cost Management

Ensuring that your team is well-versed in cloud cost management practices is essential. Businesses can invest in training programs to educate their staff on best practices for cost optimisation. This proactive approach empowers employees to make cost-conscious decisions in their day-to-day activities, contributing to a culture of financial responsibility.

Tip #9: Consider Multi-Cloud Strategies

Embracing a multi-cloud strategy can provide flexibility and cost advantages. Organisations can assess the offerings of different cloud service providers and distribute workloads strategically. This approach helps avoid vendor lock-in and allows organisations to choose the most cost-effective solutions for specific workloads.

Need Help Optimising & Streamlining Your Cloud Environment?

Don’t let your cloud costs get the best of you. Our cloud experts at GKM2 can help your Sydney area business with effective solutions that give you the cloud power you want without the waste.

Contact us today to learn more. Call +61 2 9161 7171 or reach out online.