The majority of businesses are still shifting workloads from on-premises servers to the cloud. Although cost-cutting isn't usually the primary motivation behind such migrations, it can't hurt if money is saved along the way for greater scaling or reliability, or to eliminate IT capital expenditures.
The financial benefits of cloud computing are real, even if they aren't as obvious as years of marketing would have you believe. The top five cost-cutting techniques available to CIOs are outlined below.
Lift and shift should be avoided
It is becoming easier to migrate a workload or a group of integrated workloads to the cloud with little changes. If a data center lease is about to expire, lifting and shifting virtual machines (VMs) and data sets may be the only method to meet the deadlines. However, the cost of providing the shifted services will almost certainly grow in the near future.
Systems that weren't built to run in the cloud typically don't take use of the cloud's most cost-effective capabilities, such as the ability to dynamically scale infrastructure up and down in response to load, as well as the capacity to extend horizontally by spinning up new VMs or containers.
These capabilities allow IT to pay for only as much infrastructure as the business requires, when the workload requires it. In-house resources must always be available to handle the system's peak load, and moving a job to the cloud and leaving it alone almost invariably indicates it is overprovisioned. As a result, businesses end up paying more for cloud services.
On average, IT spends around 12% more in the cloud than in their own data center to run a workload.
As a result, IT should try to modify workloads to make them more cloud-friendly whenever possible, or replace pre-cloud designs with cloud-native architectures based on just-in-time infrastructure.
IT should have an uniform workload placement process (WPP) in place to evaluate workloads for migration in order to make cloud migration easier.
The WPP should consider the workload's architecture, prioritizing cloud-friendly systems over cloud-hostile ones, as well as a variety of other factors such as the risk of hosting in the cloud versus on premises (it's often safer to provide service from the cloud now), the workload's performance requirements, and so on.
Use PaaS
By moving to database as a service or application server infrastructures consumed as PaaS, organizations can save 15% to 20% on employee costs on average.
Empty racks, rooms, buildings
Supporting data center infrastructure and realizing savings as quickly as feasible should be one of the major objectives. The ability to completely empty racks means that cooling and UPS service can be reduced.
Make use of tiering and commitment
Too many cloud teams don't take advantage of committed instance pricing, and as a result, their resources aren't discounted. They do so out of either an excess of caution or optimism, not wanting to commit long-term to a system that may be refactored or replaced in the near future.
CIOs should establish a methodology for sequencing such changes and make use of as much long-term pricing as possible depending on the timetable that emerges. Any minor overspending will be more than made up for by savings.
Pay attention to the importance of the data
Data egress fees, or the cost of migrating data from one cloud environment to another or back on premises, are a common source of unexpected costs. The WPP should take data affinities into account and be used to group systems that generate a lot of traffic together.
Finally, the key point is that the financial benefits of cloud computing are possible, but not guaranteed. Even if they are seeking cloud for reasons other than cost savings, all CIOs should consider the possibility of cost savings in their decisions and plans, with the goal of realizing them if it does not hinder them from reaching their cloud strategic goals.
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