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Optimize cloud costs and save your IT budget: 4 tips for rightsizing

Cloud applications are on the rise. They offer numerous advantages for companies in particular: flexibility, scalability, mobility, automation, efficiency, and cost savings. However, caution is advised: without a comprehensive cloud strategy, you risk high IT expenses. In such cases, it's important to take a critical approach to cut costs and truly benefit from the advantages of cloud computing while optimizing cloud costs. The magic word is rightsizing.

Quickly scale resources and storage, collaborate smoothly in a team, gain more flexibility, and simultaneously reduce maintenance costs – the advantages of the cloud have long convinced German companies as well: nine out of ten are already using cloud computing today. The most important goal when migrating to the cloud for 64 percent of them is to reduce costs. According to a study by the industry association Bitkom, sustainability and IT security rank second and third. However, for more and more companies, the initial cloud enthusiasm is followed by a rude awakening when cloud expenses suddenly exceed the IT budget.

The reason: the simplicity of the cloud invites you to quickly book new solutions, scale services, and migrate data as needed. Without a holistic cloud strategy, companies risk using cloud applications only for individual workloads, resulting in cloud islands or cloud silos. Then, the cloud consumes more IT budget than planned and additionally ties up resources for management. With these rightsizing tips, excessive cloud costs can be optimized:

Tip 1: The cloud scenario must align with corporate goals

Before choosing the right cloud solution, companies should take the time for important preliminary work. The first step is to align the company's own goals with the planned cloud migration. This helps identify which scenario can optimally support the organization. From this, a holistic cloud strategy can be derived, right down to daily use.

Those who thoroughly examine the existing IT infrastructure are often rewarded: updates for outdated servers and switches, as well as licensing for each individual user, often mean significant costs for companies. By switching to the cloud, a considerable savings potential often opens up here.

Tip 2: Find the optimal cloud model

The next step is for companies to examine the various cloud models and determine whether public, private, or hybrid cloud best suits their needs and requirements.

Highest security in the private cloud

A private cloud environment offers a high degree of control and security: it is operated exclusively for individual organizations such as companies or government agencies. It provides IT services such as cloud computing services and infrastructure solely for authorized persons for private use over the Internet or corporate networks. Therefore, it is often referred to as a corporate cloud or internal cloud, as it is hosted in company-owned data centers or intranets. The advantage: internal or specific legal requirements can be optimally implemented with private cloud solutions like luckycloud Enterprise. However, the bandwidth of the internet connection can limit performance, or operation may be relatively costly depending on the data volume.

Particularly flexible and secure in the public cloud

A public cloud is an online service that stores data online and makes it securely accessible to certain people. This way, files and documents can also be shared with others. At luckycloud, public cloud applications can be professionally realized with various models (cloud for individuals, teams, and businesses), and data is always secure.

The best of both worlds with the hybrid cloud

The hybrid cloud is a combination of private and public cloud. It combines the functions and advantages of both cloud models. This allows the hybrid cloud to combine internal and cloud-based applications. For example, users can access certain services over the Internet. Applications and documents that are particularly critical to data protection, on the other hand, remain internal to the company. Even a single NAS server as a private cloud with a connection to the public cloud can make a decisive difference: with such a hybrid cloud, old technologies can be replaced, costs can be saved, and the IT budget can be relieved.

Tip 3: Uncover hidden costs and plan the budget

Only after finding the right cloud model should companies start looking for the right provider. Here, the budget is an important aspect of the selection process. But points such as transparency in topics like data protection and security, a stable connection, a good infrastructure for teamwork, and efficiency through streamlined processes should also be considered. Additionally, it pays to carefully examine offers to uncover cost traps and well-hidden fees: with egress fees, unscrupulous cloud services charge bandwidth and data transfer fees when data is removed from the company’s system. This means an unpredictable budget problem for companies that regularly move larger amounts of data. Another risk to the IT budget can be API costs. Here, cloud providers charge fees for the number of API calls. Unplanned higher costs can arise from API usage fees during peak demand throughout the year.

Services that offer flat fees, on the other hand, place great emphasis on individual and needs-based services for their customers. Companies can plan a fixed monthly amount in their budget and do not have to worry about hidden additional costs. Companies that choose transparent pricing structures for cloud services avoid unpleasant financial surprises.

Tip 4: Keep track of resources and expenses

Once a suitable cloud provider has been found, it is essential to establish a clear strategy for its use. If companies rely on multiple cloud applications, they should be well-organized. The key: regularly monitor expenses for cloud solutions. With (free) billing and cost management tools, companies can identify which cloud resources they barely use and where there is potential for optimization. Automated monitoring with alerts can also help respond to cost increases in a timely manner.

Moreover, if the company's requirements change, the storage class of cloud applications should be adjustable. Checking for effective storage usage can significantly reduce costs. Cloud resources can also be optimized through autoscaling, keeping expenses at a low level. At luckycloud, resources can be automatically added or minimized, and customers only pay for what they actually use. Those who also sensitize their own employees to efficient resource use often achieve further positive effects on the IT budget.

Sustainably and strategically optimize cloud costs

Increased cloud costs can be brought back under control step by step with rightsizing. Going back to the beginning opens up promising opportunities. By keeping their goals in mind, companies can achieve efficient cloud usage through smart adjustments, where costs and benefits are in harmony. With the right cloud model, knowledge of unscrupulous fees, and continuous monitoring of resources and costs, the company can pursue a cloud strategy that brings efficiency, transparency, and optimized expenses.

Do you want to implement a holistic cloud strategy and use resources efficiently? We are happy to help you find the right solution!

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