Cloud Cost Optimization Strategies
Cloud costs can spiral out of control quickly. Here's how to optimize your cloud spending while maintaining performance.
Understanding Your Costs
Before optimizing, understand where your money goes:
- Compute resources
- Storage
- Data transfer
- Managed services
Optimization Strategies
Right-Sizing
Most workloads are over-provisioned. Analyze usage patterns and right-size your instances.
Reserved Capacity
Commit to reserved instances or savings plans for predictable workloads—savings of 30-60% are common.
Spot Instances
Use spot/preemptible instances for fault-tolerant workloads at 70-90% discounts.
Auto-Scaling
Scale resources based on demand. Don't pay for capacity you're not using.
Storage Optimization
- Use appropriate storage classes
- Implement lifecycle policies
- Delete unused snapshots and volumes
Governance
Implement tagging strategies and cost allocation to understand spending by team, project, or environment.
Conclusion
Cloud cost optimization is an ongoing practice. Regular reviews and a culture of cost awareness lead to sustainable savings.