• Just Cloud IT

Where Your Cloud Is Wasting Money

The cloud is marketed as a place where you pay only for what you actually use. That is also why many managers believe that cloud costs more or less manage themselves. The reality is different. The cloud saves money only when someone actively manages it.

Where Your Cloud Is Wasting Money

Without oversight, the opposite is true: the cloud can become an expensive way to run infrastructure without control, because nothing stops the spending until someone actually checks the bill.

Forgotten resources

This is the most common mistake of all. A server is deleted when a project ends, but the disk it was running on remains. The network interface remains. The public IP address remains. Each of these items may cost only a few euros per month, so no one notices.

It is similar to paying for a streaming subscription that nobody has watched for years – the money simply leaves the account every month. The difference is that in the cloud, hundreds of these "forgotten subscriptions" can accumulate across the environment and together account for a surprisingly large part of the monthly bill.

Servers oversized "just in case"

The second mistake is not technical. It is a decision-making problem. When ordering a server, teams often request more capacity than they actually need, just to have some "headroom." The problem is that this extra capacity remains indefinitely, and after a few weeks no one goes back to ask whether it is still necessary.

A server continuously running at five percent CPU utilization is a common finding during cloud audits. Downsizing such a machine by one or two tiers can save hundreds of euros per month on a single instance – and in most companies, there is more than one.

Test and development environments running 24/7

The third mistake is the easiest to understand: development and test servers run 24 hours a day even though they are actually used for only eight hours a day on working days.

The difference between continuous operation and automatically shutting them down outside business hours can reduce the cost of that environment by 60 to 70 percent. This does not require a complex investment. It takes one rule and an automation that can be configured in a single afternoon.

No commitment where it makes financial sense

The final mistake is the opposite extreme. A company knows in advance that a server will run continuously for the next three years, yet it continues paying the standard hourly rate.

Discounted commitment options exist precisely for this type of workload and can reduce costs by up to 70 percent. Companies often avoid them because they are concerned that the commitment may no longer suit their needs, even though these are typically production systems that are not going anywhere. Paying full price for flexibility can be a more expensive luxury than it first appears.

What this means for you

None of these problems is particularly difficult to fix. The real issue is that no one knows they exist until someone reviews the environment resource by resource. This should not be an annual budget exercise, but a regular routine.

A question for you: Can you say exactly how much you are paying each month for resources that nobody is currently using – and when was the last time you checked?

SP Software Solutions | Just Cloud IT

 

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