What Drives
Cloud Cost?
What Drives
Cloud Cost?
Lack of Compute
Optimisation
Approximately 44% of compute spending is
allocated to non-production resources, leaving
these resources idle for about 76% of the time
outside a typical 40-hour work week
Lack of Database
Optimisation
Inaccurate selection of cloud-native database
options can contribute to an expensive cloud
database implementation.
Lack of Data Storage
Optimisation
Around 15% of customer bills go towards
storage, with roughly 35% of that expenditure
attributed to unattached volumes and snapshots.
Based on Gartner’s spending data, an estimated
$3.4 billion could potentially be squandered this
year on orphaned volumes and snapshots
Legacy Inefficient
Architecture
Outdated Legacy Applications and Inefficient
Architectures in Cloud Technology hinder
scalability, agility, and innovation thereby
lowering performance
Licensing Challenges
Many companies face challenges in managing
SaaS licenses, with over half reporting up to 24%
unused licenses in 2019. Furthermore, issues like
‘shelfware’ and inaccuracies in cloud technology
licensing and pricing contribute to unexpected
costs.
Because of Suboptimal Cloud
Lack of Process
& Controls
Changing Business
Conditions
SUBOPTIMAL
CLOUD
Lack Of Expertise
Continuous Changing
Cloud Technology
Factors like inadequate processes, limited expertise, shifting business conditions, and the constant changes in business environment can create a less-than-ideal cloud setup. This might mean using too many resources without getting enough value or using too few resources and missing out on cloud benefits. The right approach involves continuously overseeing and managing costs to ensure they stay in check.
Controlling Cloud Cost..
is a continuous Process,
Not a one time task
Examples
Real Life Examples - Manufacturing Company
Main Idea
- Insufficient resource provisioning
- Failed to track unused resources
- Ignoring cost effective compute options
- Lack of automation
Before
- Extra VMs for heightened workloads caused overspending. Cloud 9 analyzed and tailored solutions for anticipated and unexpected workload peaks.
After
- For enhanced efficiency and savings, we considered Azure Functions for eventdriven tasks. This method scaled resources as needed, cutting costs and eliminated provisioning delays by preparing resources before workload spiked.
Savings
- Client was able to save 41%
on Azure Virtual Machine
cost.
Real Life Examples - Large Bank
Main Idea
- Not Leveraging right AZ SQL Database, staying with SQL VM
Before
- Customer upgraded to expensive Azure VM databases for compliance and business needs, potentially quadrupling annual budget allocation
After
- Cloud 9 leveraged lowcode/no-code tools— Logic Apps, runbooks, Azure monitoring—to bridge Azure SQL Database gaps, meeting compliance and goals without exceeding the budget by fourfold, unlike full Azure SQL on VM
Savings
- 4X on budgeted data cost
Real Life Examples - Dental Practice
Main Idea
- Teams scale resources without considering cost consequences, leading to budget overruns in the absence of controls. Inefficiencies are further exacerbated by inconsistent resource tagging and a failure to utilize Reserved Instances and appropriate plans.
Before
- The lack of efficient, granular, and correct resource tracking, along with the absence of granular project-level tags, led to resources running beyond their intended use, escaping audit, and exceeding the budget.
After
- C9 audited and enforced accurate, precise, and standardised tagging, resulting in the identification and removal of redundant resources that were previously overlooked after project completion due to inadequate tagging.
Savings
- Dental practice ended up saving 45% cloud cost by eliminating all the provisioned resources cost.
Real Life Examples - Logistic Company
Main Idea
- Using Lift & Shift instead of Cloud-native design, relying on legacy monolithic architecture, inefficient scalability and absence of modernisation like microservices, containers, and serverless setup.
Before
- The customer’s adoption of the common Lift & Shift approach during their cloud migration resulted in a significant number of underutilized cloud resources and cloud operation costs exceeding the budget.
After
- Cloud 9’s analysis identified microservices to aid legacy app, eliminating reliance on resource-heavy monolithic systems. Embracing cloud- native microservices surpassed desired functionalities
Savings
- Unquantifiable savings by retaining the monolithic legacy app and replacing resource heavy, low performing modules with cloud native microservices leading to achieving and exceeding performance goals in budget.
Summary
Cloud Cost Optimisation is a Continuous Process
Optimisation Requires Periodic Audits
To Get Most Of Your Cloud Spend Leverage Modern Cloud Services Such as PAAS, Serverless, and Microservices
How Do I Get Started?
We Start With Assessment
What Drives
Cloud Cost?
We Assess Your Current Environment
We Learn About Your Business Priorities
We Understand Your Future Direction
Because
An Assessment provides with a prescriptive guidance
i.e. Tactical & Strategic
on how to optimize your Azure Environment
without Compromising on Performance, Agility, Resiliency and Security
So Let’s Connect!
