Tips for Optimizing Cloud Infrastructure Costs

In cloud computing, managing infrastructure costs can feel like a balancing act—one misstep and your budget can spiral out of control. As businesses increasingly rely on the cloud for agility and scalability, finding ways to optimize these expenses becomes crucial. But where do you start? The key lies in strategic planning and smart resource management. That’s why we’ve tapped into the wisdom of top industry professionals, including CTOs and tech leads, to bring you expert advice on how to effectively manage your cloud infrastructure costs. From leveraging auto-scaling to prevent over-provisioning to carefully defining requirements and budgeting for a strong ROI, these five strategies will help you get the most out of your cloud investment.

• Avoid Over-Provisioning With Auto-Scaling
• Use Observability for Hidden Cost Reduction
• Right-Size Instances and Monitor Usage
• Implement Monitoring and Cost-Management Tools
• Define Requirements and Budget for ROI

Avoid Over-Provisioning With Auto-Scaling

To optimize cloud infrastructure costs, focus on avoiding over-provisioning. Many businesses overestimate their resource requirements, resulting in excessive spending. Conduct regular resource usage audits and right-size your allocations to ensure you’re only paying for what you actually need. Auto-scaling features help dynamically adjust resources based on demand, cutting down on waste. Additionally, by continuously monitoring and adjusting your cloud usage, you can identify and eliminate inefficiencies, leading to further cost savings.

Maksym Datsenko, CTO, Cloudfresh

Use Observability for Hidden Cost Reduction

As a cloud infrastructure expert, I see many organizations struggle with optimizing costs. Here’s a powerful tip that goes beyond simple resource rightsizing:

Leverage observability to identify and eliminate hidden costs: observability isn’t just about application performance; it’s a cost-optimization tool in disguise.

Here’s how observability helps you optimize cloud infrastructure costs:

• Uncover Idle Resources – By analyzing resource utilization across your infrastructure, you can identify underutilized instances or services you’re paying for but not fully leveraging.

• Pinpoint Inefficiencies – Observability helps you see where resources are bottlenecked, allowing you to optimize configurations or right-size instances for better cost efficiency.

• Predict Scaling Needs – Real-time insights into resource usage patterns enable proactive scaling to meet demand fluctuations. This helps avoid overprovisioning during peak periods and unnecessary costs during low-usage times.

• Reduce Observability Tool Costs – A unified platform eliminates the need for multiple monitoring subscriptions, significantly reducing your overall observability expenses.

By gaining deep visibility into your cloud infrastructure with observability, you can make data-driven decisions that optimize resource allocation and reduce overall cloud spending. It’s a win-win for both performance and your budget.

Ashwini Dave, Product Marketer, Middleware

Right-Size Instances and Monitor Usage

When it comes to optimizing cloud infrastructure costs, one thing I always recommend is to right-size your instances. This means reviewing your cloud resources, such as CPU, memory, and storage, to ensure they are perfectly aligned with the actual workload demands.

For instance, why pay for premium instances if you’re using an application that doesn’t require high availability? It’s better to downgrade to something more cost-effective until your project demands so.

In my experience, companies often overprovision their cloud resources, thinking they need a buffer for peak times. But they pay more than they actually use. For example, I once worked with a company with multiple EC2 instances running at just 20% utilization. That was a clear waste of money.

To fix this, we analyzed the usage patterns, looking at CPU, memory, and disk I/O metrics. We found they could handle the workloads by downsizing some instances and switching to burstable instances like AWS T3 without overpaying.

Also, remember to set up automated tools like AWS CloudWatch and auto-scaling groups to monitor usage in real time. These tools not only help adjust resources but also help ensure you are only paying for what you use.

Overall, rightsizing your instances and continuously monitoring usage can lower your cloud costs and help you manage your cloud resources effectively.

Sourav Kar, Tech Lead, Wavel AI

Implement Monitoring and Cost-Management Tools

A pivotal tip for optimizing cloud infrastructure costs is to implement robust monitoring and cost-management tools. These tools are critical in helping organizations gain visibility into their cloud usage and expenditures. By closely monitoring your cloud environment, you can identify underutilized resources, such as over-provisioned virtual machines or idle storage volumes, which often contribute to unnecessary costs.

Effective use of these tools involves setting up alerts for unusual spikes in usage, analyzing usage patterns to right-size services according to actual needs, and automating policies to shut down or scale back resources during low-usage periods. For instance, turning off non-essential instances outside of business hours can significantly reduce costs.

Additionally, most major cloud providers offer detailed recommendations and automated solutions within their platforms to assist in optimizing spending based on your specific usage patterns and commitments. Implementing these measures not only reduces costs but also enhances the overall efficiency of cloud operations.

Craig Bird, Managing Director, CloudTech24

Define Requirements and Budget for ROI

Cloud computing is essential for modern enterprise applications, but managing the associated costs can be a significant challenge. Without careful planning and strategic decisions, cloud infrastructure expenses can quickly spiral out of control, undermining the financial benefits that initially drove the move to the cloud. However, by following some key guidelines, businesses can optimize their cloud spending, maximizing their ROI while reaping the full advantages of cloud technology.

One of the first steps in optimizing cloud costs is to clearly define your system requirements and budget, ensuring these two elements are closely aligned. This process should involve cross-functional teams—engineering, product, procurement, and finance—to provide a well-rounded perspective on what is needed and what can be realistically afforded. Engaging different stakeholders from the beginning helps to set realistic expectations and prevents costly oversights down the road.

Monitoring cloud operations is key to avoiding budget overruns. Selecting a cloud platform that offers real-time cost monitoring and alerts can help manage expenses more effectively. For businesses operating applications with variable demand, choosing a cloud solution that supports scalability is particularly beneficial. Auto-scaling and load-balancing features allow businesses to scale up capacity as needed, rather than maintaining idle resources in anticipation of peak demand. This approach not only ensures that applications perform well during traffic spikes but also minimizes unnecessary costs associated with over-specification.

Besides, selecting a platform that offers automation and an intuitive deployment experience can significantly reduce time and costs. Cloud providers that offer specialized solutions for specific frameworks can streamline deployments. This specialization enhances efficiency by providing tailored support and reducing downtime, which in turn minimizes costs.

Finally, regular reviews of your cloud environment are essential. Identifying and eliminating unutilized or idle resources—such as temporary servers, storage associated with terminated instances, and idle computing resources—can lead to significant cost savings. Regular checks of idle accounts, particularly in production environments, help uncover inefficiencies that might otherwise go unnoticed.

Luqman Saeed, Jakarta EE Specialist, Payara Services Ltd