As organizations grow, so does their data and the costs associated with handling data. With the advancement in data engineering services, cloud computing has become more timely and prominent than ever. Most large businesses today are migrating from on-prem to cloud environments, and there is an increasing focus on cloud cost optimization as spends can eventually go unchecked and result in increased IT overheads.
Many instances such as EC2 in AWS provide a cloud computing platform. Amazon EC2 pricing is free to try which may then include costs associated with the services availed. In this blog we will look at some methods based on real world experiences that have helped businesses in effective AWS cloud hosting cost management.
Here are some essential prerequisites to keep in mind while dealing with cloud infrastructure
- Look at cost optimization as a practice rather than a one time activity
- Ensure proper tagging practice is in place by company/function/product/team/environment. Follow this link for best practices.
- Get in-depth information on cost details to define the right set of activities for reducing cost.
- Choose a custom monitoring solution if needed. If the billing dashboard doesn’t provide the report the way you needed it, get a custom monitoring solution. Maybe just a script using a billing API to figure out cost at day level by division/team/product. At Sigmoid we have developed an in-house tool which provides in-depth cost segregation.
Making the most out of AWS credits
With growing competition among cloud providers, all major providers including Amazon, lend cloud credits for migrating to their platform or staying with them. However, they may ask for a term commitment or request for use cases to offer these credits.
Startups can tie up with accelerator/angel-fund providers or affiliated to organizations such as Nasscom “10000 startups”(India) will help you start building products without any upfront investment on cloud infrastructure. You get credit up to $100,000 from various cloud providers including AWS based on the problem that you are trying to solve with your product.
Talking about AWS cloud hosting cost, there is also AWS Activate, which provides startups with a host of benefits, including AWS credits, technical support and training, to help grow your business. It offers credit upto $100K based on the use case.
In case of enterprises, if the account is tied with AWS reseller partner then you can negotiate for a discount upto 5%. Additionally, Amazon also offers credits for POCs if they see that the concept could increase cloud utilization over the period of time.