Cloud cost reduction strategy – a whitepaper

Cloud cost reduction strategies are a hot topic right now. Download our whitepaper & learn what you can do to lower your cloud overspending.


Reducing cloud costs is a hot topic. As a result, many businesses are creating cost-reduction strategies to help them maintain growth.

Businesses routinely take into account factors like costs, timing, quality, and agility, and they are doing so more frequently now that an economic downturn is imminent. They may ponder the following question:

What can I do to reduce costs while moving forward with our essential initiatives to prepare for the future?

Most businesses will use their data to prepare for upcoming political, natural, or economic events. Despite it being a good approach, many pertinent issues are overlooked.

How, then, can you cut costs more effectively?

This whitepaper contains information on cloud expenses and strategies for long-term cost reduction. 

Let’s go over several cloud cost-reduction tactics businesses commonly use when facing escalating costs before discussing the most effective techniques.

Common cost-reduction strategies

This section overviews cloud tactics most businesses use to reduce cloud spending. Let’s go through them one by one.

Minimising software licensing fees

Cloud computing often deals with both open-source and paid technology solutions. When used strategically, both have a positive impact on cloud costs. However, finding the solution that closely fits your business goals usually takes experience, time and money.

If you are trying to find the best solution for your cloud environment, you might end up subscribing to several solutions simultaneously. Stacked licence fees can represent a significant portion of overall spend. Evaluating the best tech solutions and their prices is key to finding the right single solution for your business, thereby reducing costs.

Using cost monitoring tools

Most businesses turn to cost-monitoring tools or cost-reduction software to lessen cloud costs. In the best-case scenario, these tools help reduce cloud spending to a certain extent. But, they do omit the most critical parts of operations: your infrastructure and business goals. In this case, you blindly follow a checklist instead of deeply understanding the problem space of cloud overspend.

Choosing the right cloud provider

There are so many cloud providers available, it makes little sense to count them all, since every month the number of cloud apps is doubling. Yet you can be sure that Google Cloud, AWS and Microsoft are at the top of the food chain. Now divide these in three main types of cloud computing services: 

  • Infrastructure as a Service (IaaS)
  • Platform as a Service (PaaS)
  • Software as a Service (SaaS)

If your business depends on flexible, highly scalable foundations for its products and services, then it’s likely you will be most interested in the first two cloud computing models: IaaS or PaaS. But then arise the questions of certification, technologies, services, data security, service dependencies and much more.

By now, it’s probably clear that much research is needed to get the best possible provider and cost combination. Once you decide on a provider, signing up for a more extended period may be wise. Cloud providers offer discounts such as reserved instances or savings plans. You can buy them anytime and save up to 70% for a long-term commitment. 

Efficient cloud cost-reduction strategies

Gartner provides seven reasons why your cloud budget increases steadily. Their take is that there is never one reason responsible for cloud overspending. So let’s take a look at the seven reasons they name:

  1. Ungoverned costs – This ranges from many little credit card bills to the time you might miss on a project.
  2. Unanticipated usage – As the cloud framework grows, so will the time required by your application development and deployment teams. If your cloud framework isn’t scalable, your cloud costs will rise.
  3. No commitments – Businesses often refrain from commitment to save money, but actually spend more on ongoing operational costs just to create a good-looking budget for two quarters.
  4. Dev waste – This includes idle or underused tech resources and developer efficiency. If your employees must tackle different tasks than the ones they should focus on, your costs rise steadily.
  5. Too much production headroom – This includes the lack of autoscaling for applications. Most companies miss either the knowledge or the workforce to do so.
  6. Wrongsizing production – A production environment that doesn’t support the business goal can cost a lot of money.
  7. Suboptimal design and implementation – If you don’t consider your business goals during the design phase, you might pay more.

As you can already guess, cloud cost-reduction software will fail at attempting to solve these issues. This means you need a different approach to cost reduction.

Download the whitepaper

As promised, we have prepared a whitepaper for you on tackling cloud cost reduction, which includes a use case complete with relevant facts and figures. You will see the possibilities you have for reducing costs and increasing productivity. If you want to know more about how to reduce cloud costs, follow the link below.

How to reduce cloud costs and prepare for 2023

Businesses must consider costs, time, quality, and agility, especially in light of an economic slowdown. Gain insights on cloud cost reduction strategies; we’ve got examples, numbers and best practices to share.

Download now
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Written by

Bartek Antoniak
Bartek Antoniak Head of Cloud Engineering Nov 24, 2022