7 Reasons Why Cloud-Based Cost Optimization Software Is Worth It

Apr 8

The cost of doing business has never been higher. A typical startup with 5 employees costs around $184,830 per year. Just imagine how much more money you’ll spend to run a small or large-sized business. So it’s not a surprise that businesses of all sizes are looking for ways to reduce their overhead expenses.

One of the best ways to optimize cost in your organization is to use cloud-based software. It allows businesses to easily manage their finances and maximize their profits.

Aside from this, other ways cloud cost optimization software can help you. With the right software, you can save time and money by ensuring your operations are efficient. This article explores the benefits of using software to optimize cloud costs.

Why You Should Invest in Cloud Cost Optimization Software

The cloud has been a useful tool for businesses in their day-to-day operations. Businesses mainly use it to store files and backup data. You can also test new projects or programs in cloud platforms, as well as save on your tech startup cost by removing the need for computer hardware.

But this technology can be expensive if you don’t know how to optimize your cloud usage. That’s where cloud cost optimization (CCO) comes in. CCO is a practice of reducing waste from the cloud, which increases cloud performance. With cloud optimization, you can get a good ROI for all the cloud services you buy.

Investing in a cloud cost optimizer helps you a lot to increase your cloud cost savings. These tools let you identify what you’re doing right and what you need to improve in using the cloud.

The best part is that some work well with cloud platforms like AWS, Google Cloud, and Azure. This cross-platform capability lets you optimize cloud costs, whichever platform you're using.

They're also primarily subscription-based, which means there is no large upfront cost to get it. Instead, you pay a monthly fee based on the number of users and the type of plan you choose. Because you don’t have to purchase the software, you save money on upfront costs.

Aside from this, there are other benefits of using a cloud cost management tool.

1. Improved Efficiency

Cloud cost optimization tools can increase efficiency by helping you better understand and manage your cloud usage and costs. These tools can provide a range of features and functionality to help you achieve this.

Here are some examples of how these cost optimization tools can increase efficiency:

Monitor usage and cost in real-time
Identify optimization opportunities
Automate optimization
Provide recommendations for better cloud optimization

2. Enhanced Cloud Optimization

Paying a fixed price is simple, especially when it takes time to understand every single cloud service. But since you’ll be paying for services that you're not even using, this is a waste of your money.

Software for cloud cost optimization helps you determine your demands for cloud services. It will, then, choose the best resources and remove those you don’t need. This lets you maximize your cloud’s performance without making excessive compromises.

3. Greater Visibility

The software also allows businesses to track and manage their finances in real time. This means you can see how much you’re spending and collecting as it happens. Monitoring and organizing your cloud expenditures can help you boost your company’s profit.

These cloud cost optimizers also provide accurate reports on your cloud usage and costs. By doing so, you can adjust your cloud infrastructure accordingly to optimize costs.

These reports may include information such as:

Cloud resource usage
Cloud cost breakdown
Cloud cost trends
Comparison to benchmarks

4. Easier Budgeting

If you've used cloud-native technology, it's likely that you can’t see how much money you have spent. Your cloud bill is long and complicated. In fact, even other cloud users have a hard time reading and understanding their bills. That’s because AWS cost optimization bills often hide this information under rows of text.

Cloud cost optimization tools let you read your cloud price and billing easily to see where you pay the most. With this, you can identify your spending patterns and check for any cost redundancy in the cloud. This also allows you to create budgets and forecast future costs so that you can plan and allocate resources.

5. Quick Data Analysis

With a cloud cost optimizer, you can quickly analyze data. You don’t have to download data to a computer and then analyze it there. Instead, you can do this in real time as it is collected.

Since you’re using the cloud, the data will sync to the cloud. You only need a device and an internet connection to access the data from the cloud. Not only that but cloud cost optimization tools have visualization and data analysis features. As mentioned, they generate reports about important information, which you can use to:

Identify underutilized resources
Identify resources that you’re using inefficiently
Identify opportunities to take advantage of pricing discounts or reserved instances (RI)

This makes it much easier to identify problem areas and take action to correct them.

6. Automated Optimization

Some software for cloud cost optimization includes automated optimization features, including:

Resource optimization
Pricing optimization
Resource tagging
Cost forecasting
Alerts and notifications

By doing so, you can save money without having to manually monitor and adjust your resources. But it’s important to note that cloud cost optimization software has different automation features. It’s a good idea to compare different software with each other to decide which one has the features you need.

7. Cost-Effective Plans

Saving plans and special offers are far more alluring than the standard on-demand charges for cloud services. Anyone would want to spend less and save more on their cloud infrastructure costs. But these offers often pose a lot of risks rather than gains.

You give up freedom when you pay for a savings plan since you are locking in a provider. While savings plans are cheap at first, it doesn’t offer a lot of flexibility. After some time, you’ll realize that the cloud optimization software you have isn’t enough. In the end, you’ll be paying more when you change your plan.

Finding The Right Cloud Cost Optimization Software For Your Business

Each cloud cost optimization software has its advantages and disadvantages. That’s why you need to take a lot of time choosing the right software for your needs. Here are some tips to keep in mind before you buy cloud cost optimization software:

1. Meet Your Company Needs

First, think about what you want the software to do and what your specific needs are. Do you want to monitor your cloud usage and costs in real-time, automate optimization tasks, or receive recommendations for optimization?

Knowing your needs will help you narrow down the options and find a tool that meets your requirements.

2. Research And Compare Your Options

Next, do some research on the various cloud cost optimization tools that are available. Look for those that offer the features and functionality you need.

Read reviews and testimonials from other users to get a sense of the tool's effectiveness and ease of use. Some websites also outline different capabilities and limitations of the best CCO tools. You can use these resources to help you decide.

3. Consider The Vendor

It's also important to consider the vendor of the tool you are considering. Look for one that is reputable and has a track record of providing high-quality tools and good customer support.

4. Look For Ways How You Can Get Discounts

There are a few strategies you can try to get discounts on cloud cost optimization software:

Shop around and compare prices from different vendors
Look for special offers or promotions
Negotiate with the vendor
Consider an open-source option
Take advantage of trial periods or free versions

5. Try The Product Before Getting Into a Long-Term Commitment

Many cloud cost optimization tools offer free trials or demos, so you can try out the tool before you commit to purchasing it. This can help you get a better sense of the tool's capabilities and if it is the right fit for your company.

Maximize Your Cloud Usage With Cloud Cost Optimization Software

The cloud has been a game-changer for a lot of businesses. But there’s still the risk of paying more money than you should if you’re not using any tool. With cloud cost optimization software, you can still get the best value from your cloud services.

Overall, cloud-based cost optimization software can help you save money on your cloud bills. You can also improve the efficiency of your cloud infrastructure by investing in such software. It is a valuable tool for businesses of all sizes and can pay for itself quickly through cloud cost savings.

Harsh Gupta