If you’ve moved to Azure or AWS already and been surprised by the cost, you’re probably not alone. Many businesses migrated their applications and data from traditional data centres on the promise of big savings which then failed to materialise.
However properly managed, public cloud solutions in Azure
and AWS should be cheaper and easier to manage than legacy servers, but in many
cases they aren’t. Here’s 5 reasons why
you may be paying more than you need to, and what you can do to solve the
1. The architecture isn’t right for your needs
Within both Azure and AWS, there is a vast range of
different virtual machine configurations available. These have different specifications, with
different processor types and different amounts of memory and storage.
Each Virtual Machine type is optimised for different types
of usage. A machine that’s been designed
to run a large application database with a lot of users has a much more
powerful specification than one that’s been designed for simpler tasks such as
handling your front end.
Incorrectly specifying high performance (and more expensive)
virtual machines for the various components of your cloud infrastructure may
mean that you’re paying for capacity that you simply don’t need. Analysing your usage and reviewing the
architecture of your deployment to ensure that the different components match
your needs can help reduce costs and improve performance in areas where
underpowered machines have been deployed.
2. Your provider doesn’t scale resources up and down based on need
Very few applications have a consistent load throughout the
day. During peak business hours, usage
may be much higher than during the evening.
Both Azure and AWS offer customers the ability to scale the
amount of resource that is dedicated to an application so that it better
reflects demand. If your cloud
infrastructure is “always on” to meet maximum demand, you will be paying for
that full capacity all the time.
By monitoring the amount of usage and switching off unused
capacity or scaling to different specification of machines at low-demand times,
costs can be reduced significantly without affecting end user experience.
3. You’re paying for resources that you don’t even need
Azure and AWS make it simple to add extra machines to your
account. It’s simple to set up a new
virtual machine for running a test or developing a new feature for your
application, however unless you regularly check usage, these machines may not
be switched off when they’re no longer required.
Regular analysis of usage across your Azure deployment is
essential in avoiding the build-up of redundant capacity. A comprehensive audit should be carried out
to ensure that you’re not paying for anything that you no longer need.
4. Your provider isn’t passing on savings based on their consumption
As with any commodity, bulk buying by a provider can lead to
lower costs. There are multiple ways for
large providers to build discounts into their spend such as advance purchase or
moving capacity between geographic areas.
While some cloud providers will pass on their savings to
clients, this isn’t always the case – the clients still pay the full price
while the discount is taken as margin.
Without transparent pricing, and comprehensive information
about billing and usage levels, it may not be clear to you what you’re actually
paying for, which in turn means that you’re likely paying over the odds. If your cloud supplier is charging a
percentage mark-up on your Azure or AWS spend, they’re disincentivised from
reducing your costs because it reduces their income.
5. Your payment method may not be right for your business
If you buy Azure or AWS direct from Microsoft or Amazon,
then you’ll normally pay for the service using a credit card.
That’s rarely ideal for businesses and can lead to nasty
surprises if costs rise.
Working with a partner to manage your cloud will usually
mean that a business can move to a more convenient and consistent invoice model
for payments. This makes it easier to
manage budgets over time and identify issues more quickly.
Want to find out more?
Our technical team can provide a risk-free review of your current deployment to determine whether you’re getting what you need. Request a review today and download our guide to migrating to a new partner to understand how straightforward it can be to move your data and applications within the cloud.