The three stages of cloud cost management

From a cost perspective, cloud services are divided into two distinct types – services with a monthly recurring fee like GitHub, and services based entirely on usage like AWS.

The need to manage the cost of the former is minimal. In most cases, change will only occur when you change your plan.

But, if you are leveraging the true elasticity of the cloud on any significant scale, you are most likely faced with challenges of cost management associated with the unpredictable usage patterns of your application.

If you are leveraging the true elasticity of the cloud on any significant scale, you are most likely faced with challenges of cost management.

The three basic stages of cost management for usage-based services: passive monitoringefficiency optimization and operational decision-making.

Stage 1: Passive Monitoring

One of the initial fears of moving to the cloud, and specifically the usage-based model, is the fear of running up a large bill. The very initial stage of cost management must include monitoring to assure that these costs are never a surprise.

Stage 2: Efficiency Optimization

Once the most basic needs of cloud cost management are addressed through monitoring; organizations often hunger for a deeper understanding of spending patterns. The desire to gain this insight is primarily driven by the need to eliminate waste in their cloud infrastructure and realize the potential cost savings.

Stage 3: Operational Decision Making

Usage patterns are unpredictable. IT’s cost-profile demands real-time insight. Growing cost of operating in the Cloud may not indicate lesser efficiency; it may be a sign of actual growth. Cloudability delivers the necessary insight to distinguish these two.

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