Cut Costs, Boost Profits: Smart Cloud Server Optimization Tactics

Hosting workloads on the cloud can be more affordable than using on-premises infrastructures. However, without proper optimization and management, cloud computing can inflate costs and strain your budget. That's why cloud optimization plays a key role in maximizing cloud efficiency and controlling expenses for businesses using cPanel cloud server.

Without a decent cost optimization strategy, businesses may struggle to amplify their cloud infrastructure potential. Selecting the best Linux cloud server allows you to experience exceptional performance, scalability, and affordability as cloud infrastructure continues to evolve. Keep reading to explore valuable insights on implementing a cloud optimization strategy, including what it means, why it is essential. You will also discover the top 8 feasible practices for reducing and optimizing cloud expenditure.

What is Cloud Cost Optimization?

Cloud cost optimization is the technique of finding a fine balance between cloud expenditure and workload performance. To delve deeper into what that means, let’s evaluate the basics of cloud pricing structures. Workloads need computing, storage, and networking resources to run. In most scenarios, cloud providers charge for the amount of cloud resources assigned to workloads, even if the workloads don't utilize them entirely. For this reason, it’s easy to overspend in the cloud by selecting cloud setups that lack cost efficiency.

Why is Cloud Optimization Necessary?

Cloud cost optimization is essential, as cloud resources often come with significant costs. Overinvesting in the cloud can significantly impact your IT budgets. However, optimizing cloud expenditures is an easy way to eliminate unnecessary cloud costs, which can then be reinvested in other aspects such as hiring IT resources, managing the shortage of tech talent, or implementing AI and other new technologies.

Smart Cloud Optimization Techniques

1. Track Your Cloud Spending

You can't optimize your cloud spending unless you analyze what you’re spending. Therefore, it's essential to monitor your cloud expenditures regularly. Instead of checking your spending once a month when the bill arrives, monitor it in real time. You can simply do this by logging into your cloud provider’s console and navigating to the billing portal, which typically offers the latest information regarding your costs or estimated costs incurred so far.

2. Analyze for Cost Deviations

As you track cloud spending, look for unexpected costs, such as sudden surges in the cost of a specific cloud service compared to previous months. Differences from baseline spending could be an indicator of cost inefficacy, such as dormant resources or the deployment of unfamiliar services. Shadow IT can also reveal unauthorized deployments that contribute to unanticipated costs. (Shadow IT refers to hardware or software that employees have installed within a business without the authorization of the IT department.)

3. Centralize Cloud Billing Data

Consider accumulating cloud resource data in a v]central location if you use multiple clouds. Doing so can help you monitor cloud expenditure from a unified standpoint, rather than logging in to each platform individually. For large businesses with annual cloud spending in the millions, centralizing cloud billing data not only simplifies cost tracking but also strengthens negotiation power for superior pricing models, which in turn ultimately minimizes the overall costs. With MilesWeb’s cloud solutions and transparent pricing, businesses can effortlessly manage and optimize their cloud expenses while ensuring maximum productivity.

4. Recognize Unused Resources

Since you pay for any cloud resources assigned to workloads–even if they aren't proactively being used–identifying unused resources is a highly effective technique to cut down cloud expenses. For instance, if you have a storage volume that isn't integrated with any virtual machines, it is likely unused and can be deactivated to decrease costs effectively. Similarly, a cloud server that is not running but not hosting any active workloads can be deactivated. These resources can always be reactivated whenever needed.

5. Analyze Cloud Server Instances

Most cloud providers platforms offer a wide range of instances to help clients customize resources depending on their needs. Each type offers distinct resources at varying pricing levels. Every instance you choose offers the basic CPU, storage, and necessary resources to manage your workload.

Ideally, the instance should provide the minimum CPU and memory needed to support the workloads efficiently without over-provisioning unnecessary resources. To analyze whether you have any provisioned instances, check for cloud servers that are utilizing a small portion of their allocated resources. If so, consider switching to a more cost-effective instance type.

6. Use Reserved Instances

Reserved instances are a specialized category of cloud server instances that come with discounted pricing. However, they need a commitment to use the instances for an extended period, generally a year or more. Reserved instances aren't ideal if you are unsure about whether your workload will run for a long duration. However, for applications that you plan to run for a long period, installing them on reserved instances can be a smart way to reduce costs.

7. Use Spot instances

For workloads that do not require continuous operation, spot instances offer a cost-saving alternative. These instances provide great discounts for cloud servers; however, come with the risk of being shut down without any prior notice. As a result, spot instances aren’t suitable for workloads that require continuous operation. However, tasks like batch data processing or AI model training—where workloads can be paused and resumed later—can run on spot instances, making them a cost-effective solution.

8. Enable Cloud Scheduling

Few cloud platforms and service types support automated scheduling. For instance, you can frequently schedule cloud servers to turn on and off automatically depending on pre-defined schedules. This practice can greatly save money by autonomously turning off cloud resources when they’re not required. To illustrate, if you have a cloud server that only needs to be operational during office hours, you can plan to turn it off at night and restart it in the morning, optimizing resource utilization and cost efficiency.

Conclusion

Cloud cost optimization helps businesses prevent unnecessary expenses on cloud services. The core objective is not just to minimize the overall cloud expenditure but also to ensure that workloads run efficiently without major cost-cutting in resource allocation.

Cloud cost optimization emphasizes maintaining the performance levels that a business needs at a moderate price to maximize value for money. With MilesWeb’s optimized infrastructure, businesses can achieve cost efficiency while ensuring optimal performance.