The benefits of hosting applications in the cloud are indisputable. Infrastructure on demand gives you limitless scale and flexibility. And the developers who once spent their time maintaining your applications are now free to innovate and build new product features.
But according to a recent cloud optimization study by Andreessen Horowitz:
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The Cloud Paradox: Today’s Growth Is Tomorrow's Runaway Cost
while cloud clearly delivers on its promise early on in a company’s journey, the pressure it puts on margins can start to outweigh the benefits. Because this shift happens later in a company’s life, it's difficult to reverse years of development focused on new features, and not infrastructure optimization.
Luckily this ebook details the multiple strategies and tactics for optimizing cloud spend, without reducing your performance:
- Make cloud spend a KPI
- Gain visibility into cloud resources
- Tag cloud resources for cost management and cloud governance
- Seek reserved and spot instances
- Incentivize the right behaviors
“Organizations with little or no cloud cost optimization plans rush into cloud technology investments. They end up overspending on cloud services by up to 70% without deriving the expected value from it.”
Gartner Finance Group, 2021
