Why Cloud Cost Optimization is Non-Negotiable
Cloud spending is on an inevitable upswing, projected to reach a staggering $597.3 billion by 2023 according to a Gartner forecast. But this enthusiastic embrace comes at a costโliterally. Far too often, businesses find themselves facing unforeseen expenditures, as their bills frequently exceed initial budgets.
Complexity Amplifies Cost
The issue goes deeper than mere numbers; it lies in management. The cloud, like any other IT resource, demands meticulous oversight. Organizations, with teams scattered across multiple projects and time zones, face the daunting task of reining in this complexity. Instituting an internal FinOps teamโan ideal solution in theoryโoften proves too expensive and logistically intricate to manage effectively.
Cloud Economists & FinOps Experts to the rescue
This is why external expertise becomes indispensable. The industry has given rise to specialized vendors proficient in cloud economics. These professionals live and breathe the cloud ecosystem, armed with the knowledge, experience, and foresight to guide your financial strategy in the cloud.
In this comprehensive article, we will delve into selecting the best vendors for cloud cost optimization, elaborate why such vendors are essential, and help you connect with FinOps analysts and cloud economists proficient in AWS and GCP environments.
Challenges in Cloud Cost Management
Despite the benefits, cloud cost management presents several challenges, particularly in large or multi-cloud environments. Key issues that businesses often face include:
- Unexpected Spending Surges: Cloud costs can increase suddenly due to autoscaling, improper configuration, or unanticipated spikes in resource usage.
- Complexity of Multi-cloud Environments: Managing costs across AWS, Azure, and Google Cloud can become challenging, particularly when cloud sprawl occurs.
- FinOps Strategy and Collaboration: The lack of coordination between cloud architects and finance teams can lead to inefficiencies. This disconnect often stems from different priorities and a lack of skilled resources familiar with both cloud-native technologies and financial processes.
- Billing Challenges: Cloud billing reports are notoriously complex, and businesses often struggle with cost allocation, budgeting, and generating accurate cloud billing forecasts.
Addressing these challenges requires adopting a strong FinOps strategy, automating cost management, and ensuring alignment between cross-functional teams.
Why You Need a Cloud Cost Optimization Vendor
While the migration to cloud services offers unprecedented advantages, it also brings challenges, particularly in cost management.
A staggering 35% of an organization’s cloud expenditure is frittered away on inefficiencies and waste. Such an alarming statistic calls for more than just caution; it necessitates a specialized approach to financial oversight in cloud operations.
Challenges Plaguing Businesses without Cost Optimization Insight
While the allure of cloud migration is strong, an absence of strategic cost optimization can lead organizations down a perilous financial path. Here’s a closer look at the multifaceted challenges businesses grapple with when they go it alone:
- Understanding Application Dependencies: Migrating to the cloud isn’t just a matter of lift-and-shift. It demands a nuanced understanding of how different applications are interlinked, a complexity often underestimated.
- Instance Right-Sizing: Opting for an instance that doesn’t match your organization’s needs can lead to overspending. This is especially tricky given the plethora of options available.
- Unrealized Provider Discounts: With the variety of discounting options provided by cloud vendors, it’s shocking that nearly two-thirds of businesses fail to capitalize on them, thus paying premiums they could avoid.
- Budget Overflows: Cloud spending often grows at an unanticipated rate; approximately 18% of organizations report that their current cloud expenditure surpasses their original budget.
- Inadequate Unit Economics Models: Only 39% of businesses have implemented unit economics models for cloud cost analysis, a modern technique that offers better budgetary control and foresight. Implementing a strategy with FinOps Domains, Capabilities, and Maturity Model Assessment can help you in maintaining observability.
Common Cloud Cost Optimization Strategies
To optimize cloud costs effectively, organizations should focus on automation, resource allocation, and continuous monitoring. The following strategies are proven to help reduce unnecessary expenses:
- Rightsizing: Ensuring that the resources being used are neither over- nor under-provisioned based on the workload.
- Spot Instances: Taking advantage of low-cost spot instances in AWS or Azure to reduce compute expenses.
- Autoscaling and Autostopping: Automatically scaling resources based on demand and stopping idle resources ensures that you’re not paying for unused compute power.
- Committed Use Discounts (CUDs): In Google Cloud, CUDs provide substantial savings for predictable workloads when reserved in advance.
- Reserved Instances and Savings Plans: Reserved instances in AWS or Azure can lower costs for workloads that require predictable, long-term use of resources. Savings Plans offer flexibility for more dynamic workloads.
How to Pick the Right Cost Optimization Vendors and Tools
The journey towards cloud cost optimization doesn’t have to be overwhelming. A reliable FinOps vendor can help navigate the labyrinthine world of cloud expenses.
Vendor Reputation and Reliability
Let’s start with the basics. You need a vendor with a track record for consistency and innovation. Browse through customer reviews and seek testimonials that emphasize reliability, consistent updates, and long-term support. A vendor’s financial stability is equally crucial; you want to partner with someone committed to evolving with your needs.
Tool Functionality and Ease of Use
When it comes to tools, “more” doesn’t always mean “better.” The tools should offer a robust set of features like cost allocation, budgeting, and forecasting, but should also be user-friendly. Check for customizable dashboards, intuitive interfaces, and data-drill-down capabilities.
Scalability Matters
As your business grows, so will your cloud operations. Ensure that the tool you choose can scale with you. Will the tool continue to operate seamlessly as your cloud complexity expands? A scalable solution will save you the headache of future migrations and financial recalibrations.
Compliance and Security
In today’s environment, data protection is non-negotiable. Ensure that the tools and vendors you opt for adhere to industry-standard compliance requirements. Are they GDPR compliant? Do they support two-factor authentication? Your vendor should treat security as a priority.
Pricing and Value for Money
In FinOps, the phrase “you get what you pay for” is especially relevant. While pricing should be competitive, what really counts is the ROI. Look for tools that offer not just cost-cutting recommendations but also ways to improve resource utilization and enhance performance.
Customer Support and Training
Ongoing support can make or break your FinOps experience. How quickly does the vendor respond to issues? Do they offer training sessions, documentation, or tutorials to help you get the most out of the tool? Good customer support is a strong indicator of a vendor’s overall reliability.
Reviews and Testimonials
Lastly, don’t underestimate the power of community feedback. Detailed reviews can provide insights into how the tool performs in real-world scenarios. These reviews often discuss the challenges faced and how the tool helped overcome them, offering a more nuanced understanding of its capabilities.
5 Best Cloud Cost Optimization Services, Analysts & FinOps Vendors
We’ve sifted through the cloud-scape to bring you the top 5 FinOps vendors and tools that can help you effectively manage your cloud costs. Let’s dive in.
Economize
Designed with adaptability at its core, Economize offers the most granular cloud cost visibility on the market. The platform’s intuitive billing console allows users to oversee monthly expenditures, unit costs, and formulate intelligent budgeting strategies.
It eliminates inefficiencies, tackles root causes, and employs preventive measures for constant cloud cost optimization. Plus, the service is scalable to any organization’s size, removing the typical barriers that inhibit cloud cost management.
Economize also offers a complementary cost audit for both AWS and GCP environments, plus a free demo of the tool, allowing users to assess its effectiveness on their own cloud environments.
Features
- Comprehensive billing console
- Cost optimization guardrails
- Preventative measures for cost containment
- Customizable to organization size
Pricing
- Free Tier: Ideal for tracking up to $10k monthly cloud spend. No credit card required.
- Plus Tier: $99/month, designed for organizations with a $50k monthly cloud spend.
- Premium Tier: $499/month, perfect for fast-growing companies with a $50k to $100k monthly cloud spend.
- Professional Tier: $999/month, created for businesses exceeding $100k in monthly cloud spending across multiple accounts.
Economize Reviews
“A great tool to get deeper insight into our Google cloud spend. Especially monitoring the usage and cost of BigQuery is a great feature that breaks it down to a single query.”
โ Suresh Kumar Khemka, Head of Platform Engineering & Infrastructure, Apna
Duckbill Group
Duckbill Group is an AWS-first cost optimization service that stands out with its unique “AWS First Pass.” This specialized service is a concentrated effort to rapidly optimize your AWS costs in just a single day.
Before this intensive session, the Duckbill team reviews your AWS architecture and expenses, positioning themselves to offer you the most targeted advice. They then provide a detailed report followed by a Q&A session to address any queries.
Essentially, Duckbill Group are the cloud cost experts who eat, sleep, and breathe AWS.
Features
- “AWS First Pass” for rapid cost optimization
- AWS Contract Negotiation
- AWS Cost Management Training
Pricing
- Less than $24,999 AWS Spend: $5,000
- $25,000 to $49,999 AWS Spend: $10,000
- $50,000 to $99,999 AWS Spend: $15,000
- $100,000 to $149,000 AWS Spend: $20,000
- More than $150,000 AWS Spend: Contact for custom pricing
DuckBill Group Reviews
“This service is essentially what @QuinnyPig did for us in a few days back in 2019 and it was fundamentally business saving, we would not have the runway, COGS, or valuation we have today without Coreyโs work that kicked everything off. Worth every penny we gave him.”
โ Liz Fong-Jones (ๆน็ฆฎ็), Field CTO, Honeycomb
DoiT
DoiT isn’t your standard cloud optimization service; it’s a partner in your cloud journey. With their customer reliability engineers, you get unlimited access to a reservoir of cloud expertise, without ticket limits or restrictions. They offer more than just answers; they provide mentorship and expert guidance, acting as an extended arm of your cloud strategy team.
Features
- Experienced customer reliability engineers
- Unlimited access to cloud support
- Mentorship and consultative approach to problem-solving
Pricing
- Zero Plan: $0 when you partner up with DoiT
DoiT Reviews
“In DoiT we found a partner we can really consult with and come up with radical new ways of how to do things. They have a deep understanding of the technologies involved. Theyโre not just a contractor that executes our plan.”
โ Orit Yaron, VP of Outbrain
CloudWerx
CloudWerx offers a holistic approach to cloud management through its meticulously designed four-step process, ranging from project vision to scaling and optimization. Their strategy doesn’t just aim for cost-cutting but focuses on eliminating skill gaps and fostering cloud adoption across your enterprise. With CloudWerx, you get more than a service; you get a cloud strategy partner.
Features
- Detailed vision setting and milestones
- Deployment and training resources
- Scalable infrastructure planning
Pricing
- Custom pricing upon contact
CloudWerx Reviews
“Working with CloudWerx has exceeded my expectations. Their attention to detail, professionalism and expertise is unparalleled. I would highly recommend working with CloudWerx on a full security plan for your business.”
โ SCOTT CLARK, CEO of The True Life Companies
Sada
Sada takes you beyond mere cost reduction to an enlightened state of financial accountability and cloud spend understanding. As a premier member of the FinOps Foundation, they specialize in empowering your IT, finance, and business units to be conscious spenders. With their expert-led approach, you can streamline your IT financial processes, enforce efficient cloud governance, and gain an unprecedented level of cost visibility.
Features
- Financial accountability culture
- Streamlined IT financial process
- Real-time billing and cost data visibility
Pricing
- Custom pricing upon contact
Sada Reviews
“My team and I were in awe of the transformative impact Sada had on our cloud financial management. They’re not just about immediate cost savings; they aim to impart a culture of financial responsibility across IT, finance, and other business units. Their expert-led approach has not just saved us money, it has educated us and turned us into smarter cloud spenders.”
โ Marianne Thompson, CTO, ZipTech Solutions
How to Find AWS Cloud Cost Optimization Analysts, Experts and Cloud Economists
When it comes to mastering the art of AWS cost optimization, having a skilled analyst or expert in your corner can make all the difference.
Finding Your Perfect AWS Partner
For those who are in the market for AWS optimization services, Amazon’s own AWS Partner Network is an excellent resource. Here, you can search for a wide variety of partners, services, and even cloud economists tailored to your specific needs.
All you need to do is visit the link and input keywords like “analyst” or “cost optimization” in the search bar. From there, you’ll be greeted with a list of vetted professionals and organizations specializing in AWS cloud cost management.
Honorary Mention: Corey Quinn
Speaking of cloud economists, we’d like to give an honorary shoutout to Corey Quinn. Not only is he renowned for his expertise in AWS cost optimization, but he’s also a Twitter superstar. Corey’s hilarious AWS memes and razor-sharp insights make him a must-follow for anyone serious about understanding AWS billing intricacies.
How to Find GCP Cloud Cost Optimization Analysts, Experts and Cloud Economists
While AWS has been around for a while, Google Cloud Platform (GCP) is catching up fast and is increasingly being adopted for its innovative features and competitive pricing. As such, the need for GCP-specific analysts and experts is growing, too.
Your One-Stop Shop for GCP Expertise
Unlike AWS, Google offers a unique marketplace for GCP experts on its Find a Partner portal. Here, businesses can discover an array of services, from analysts and cloud economists to partners who specialize in GCP cost management and optimization. Simply head to the site and enter your keywords to explore a curated list of professionals ready to elevate your GCP game.
Frequently Asked Questions (FAQs)
Navigating the complex landscape of cloud cost management can be challenging. To make your journey easier, we’ve gathered some frequently asked questions and provided succinct, informative answers.
Q: What are the best cloud cost management tools?
A: Native options like AWS Cost Explorer, GCP Billing Console, and Azure Cost Management provide a robust array of features. Meanwhile, third-party cloud cost management tools such as Economize, Flexera, and CloudBolt offer unique functionalities that can help streamline your cloud expenses further. GCP’s FinOps Hub allows you to assess your cost optimization efforts with industry benchmarks.
Q: Best practices for cloud cost management?
A: Rightsizing your resources ensures you’re not overpaying for unused services. Scheduling on/off times for non-critical services can help minimize costs, while opting for reserved or spot instances can also lead to substantial savings. A well-defined FinOps strategy will tie all these elements together, helping you achieve optimum cost efficiency.
Q: Which cloud cost management tools are open-source?
A: The open-source cloud cost management list has plenty to offer. Kubecost, Economize, Cloud Custodian, Grafana, Prometheus, and Infracost are some of the open-source options available. These tools offer a great deal of flexibility and customization, making it easier for businesses to adapt the tools to their specific needs.
Conclusion
Mastering the intricacies of Cloud Cost Optimization is not merely an exercise in frugality; it’s an essential component of efficient and strategic business management. Through a well-orchestrated combination of native and third-party tools, refined FinOps strategies, and expert consultation, organizations can achieve more than just cost reduction.
FAQs:
Q: How can organizations address the top 5 cloud cost optimization challenges?
A: Organizations can address challenges like resource over-provisioning, lack of visibility, and unpredictable costs by implementing automated monitoring tools, adopting a FinOps approach, rightsizing resources, setting budget alerts, and optimizing pricing models like reserved instances.
Q: What is cloud cost optimization?
A: Cloud cost optimization is the process of managing and reducing cloud expenses by optimizing resource usage, eliminating waste, and utilizing the most cost-effective pricing models without compromising performance.
Q: What is the cloud strategy of FinOps?
A: The FinOps cloud strategy involves cross-functional collaboration between finance, operations, and engineering teams to optimize cloud spending, improve financial accountability, and align cloud costs with business goals.
Q: Who is a cloud cost analyst?
A: A cloud cost analyst is a professional responsible for monitoring, analyzing, and optimizing cloud expenses, ensuring that resources are used efficiently and costs are aligned with budgetary constraints.
Q: What are the cost management challenge in cloud computing?
A: The main cost management challenge in cloud computing is gaining visibility and control over dynamic and scalable resources, which can lead to unexpected or inflated costs if not properly monitored and optimized.
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