Within this chapter, we provide a deeper analysis and observation of a systematic cost management approach. For this, we looked at several suppliers on cloud services and environments which resulted in the 5(+1) ways to control your cloud IT costs.
Rome was not built in a day. The same is for comprehensive control of cloud IT costs. Implementing one solution is better than having none, and therefore starting with it is already a win. Below, we identified 5(+1) ways to control your costs:
- Automation
- Clean-up
- Observability
- Cloud-native architecture
- Governance
- License (and cost) optimization
Before we take a deep dive we want to give a better understanding of the 5(+1) ways by explaining what they are.
Automation
Automation is a fundamental building block for cloud computing. It aims to make all activities related to cloud computing as fast, efficient, and as hands-off as possible and is done through the use of various software automation tools, which are installed directly on the used platform or software and are controlled via an intuitive interface. The tools that are used will help the administrator(s) to ensure that the system is performing optimally and that all requests regarding deployment and allocation are fulfilled quickly and efficiently. This process is done through the use of virtual machine templates or clones, while the automation system does the bulk of the setup and deployment.
Clean-up
During your work day, you are working behind a desk for a huge part of the day. Having a clean desk saves you from distractions, makes you more efficient, and provides focus. Besides that, it is secure, since there are no (confidential) documents available after you leave. In the cloud, it basically works the same, and – as is the case in your workplace – a clean-up can be done in various ways. When thinking about clean-up, organizations have to think about which resources are being used, how they are being used, and when they are being used.
Observability
Observability is the evolution of monitoring into a process that offers insight into digital business applications, speeds innovation, and enhances customer experience. It lets you collect and combine data from different sources and look at that same data from different perspectives,
to become in control of your business and avoid blind spots. The core concept of observability is using the outputs of a system to understand its internal state. The more observable a system, the more quickly and accurately you can navigate from an identified performance
Cloud-native architecture
Cloud-native architecture is an innovative software development approach that is specially designed to fully leverage the cloud computing model. It enables organizations to build applications as loosely coupled services using microservices architecture and run them on dynamically
orchestrated platforms. Applications built on the cloud-native architecture are reliable, deliver scale and performance, and offer faster time to market.
To meet the demands of cheaper rather than using existing (or expensive) resources, IT departments must digitally transform the organization. We see that this also can be done through the adoption of cloud native practices, allowing them to both optimize and transform their existing
infrastructure and applications. Cloud-native architecture and technologies are an approach to designing, constructing, and operating workloads that are built in the cloud and take full advantage of the cloud computing model. Cloud-native is about speed and agility.
Governance
Putting your business in the cloud creates new paradigms for the technologies that support that business. These new paradigms change how those technologies are adopted, managed, and governed. When you can delete and rebuild an entire virtual data center with a line of code
that’s executed by an unattended process, it’s time to rethink traditional approaches. This reasoning is especially true for governance.
Cloud governance is a set of practices that help ensure organizations operate in the cloud in ways that they want, that the operations are efficient, and that the businesses can monitor and correct operations when needed. A cloud governance framework is not a new set of concepts or practices, but the application (and execution) of existing governance practices to cloud operations.
Cloud governance helps businesses plan and control various aspects of their cloud usage, to ensure desired performance and efficiencies and mitigate problems and risks. These principles are not isolated, and many interact with and influence each other.
License optimization
Employees, IT staff, volunteers, customers, and suppliers, are all people. As an organization, you are held liable for any misuse and abusing software license terms. On the other hand, the software is expensive. You don’t want to license what you do not use. But today, there is more to Software Asset Management (SAM). Cloud integration, hosting services, cyber and security risks, and digital innovation plans for your business. For all of that, you need deep data insights and control of your IT environment. That is just the reason why you want to implement Software Asset Management within your organization.
Using the ‘correct’ licenses, not only in quantity but also in version and edition. This prevents not only large fines but – even more important – saves you from damaging your reputation and ensures that you can concentrate on your organization and processes without any worries.
