Part 1 of our 2-part series on Driving Efficiency through Infrastructure Optimization. Read Part 2, “How to Add to Your IT Environment without Adding Costs.”
For IT departments, the mandate to do more with less and get the most out of technology investments isn’t new. But today there’s much more pressure to find and seize immediate opportunities to cut costs.
In addition to rationalizing software and restructuring contracts, on-premise data center and public cloud infrastructure are two high impact areas for potential short-term savings.
There are some common challenges, however. In the cloud, lack of visibility and formal governance practices makes it harder to learn where and how to find savings. In the data center, the need to avoid new capital expenditures makes it necessary to free up existing capacity to support new projects.
In fact, cloud consuming organizations waste an average of 30% of their cloud spend due to redundant resources (Source: RightScale). At the same time, inactive data accounts for 50% of total storage capacity, taking up valuable space (Source: NetApp).
The best options for making short-term financial impact in the infrastructure environment are:
- Reducing cloud costs by improving management and visibility
- Freeing up data center compute and storage capacity to avoid future costs
Below, we go deeper into each of these cost saving opportunities.
Reducing Cloud Costs through Improved Management and Visibility
Without careful management, public cloud infrastructure costs can get out of control.
Because organizations can procure and consume public cloud resources much easier than their on-premise counterparts, losing track of workloads and associated spend is a common problem.
Redundant resources, the absence of adequate monitoring tools and lack of control over who initiates or decommissions workloads in the cloud all contribute to over-spend.
The Flexera State of the Cloud Report for 2020 found that 79% of those surveyed cited managing costs as a top cloud challenge, second only to security. The report also found that enterprise companies overspent their cloud budgets by 23% on average in 2019.
To right-size public cloud infrastructure and drive cost efficiency, consider the following actions:
- Find and remove overprovisioned or idle resources: Identifying and reviewing accounts with low I/O activity helps you determine which resources could be decommissioned with minimal impact to the business.
- Implement and enforce formal cloud governance: A formal cloud governance policy helps you better understand the structure of cloud costs, establish accountability and control access and decision-making around cloud resources.
- Adopt a cloud management platform: A cloud management platform helps enhance visibility into your public cloud environment to promote better forecasting for cloud budgets based on real-time usage. Further categorizing cloud instances by assigning metadata tags related to billing, environments, applicable compliance requirements and more allows IT teams to track usage and associated cost across cloud instances, even in a hybrid or multicloud environment. IT can then augment and automate tagging using cloud native tools for policy enforcement. Together, these ensure that utilization meets requirements while reducing financial risk.
- Optimize cloud storage: As with on-premise infrastructure, automating the categorization and storage of active and inactive data into performance and capacity tiers in the cloud helps drive further efficiency.
- Implement automated scaling: Putting automated scaling in place allows you to scale up resources when needed and scale down the rest of the time. This replaces the need to accommodate maximum utilization, which is often a needless expense.
- Use reserved versus on-demand instances: The leading public cloud providers offer discounts to customers for reserving instances for anticipated future needs in advance rather than pay higher rates for on-demand usage.
Looking to learn more about managing in the cloud? Get the guide.
Freeing Up Data Center Resources to Avoid Costs
Compared with adding new usage-based public cloud resources, the cost to continue operating an owned data center is often negligible. However, when capacity isn’t optimized for efficiency, the result is additional capital expenditures when the time comes to support new applications or projects.
For instance, many organizations over-provision data center hardware to avoid the problem of running short of capacity within their virtualized infrastructure. Meanwhile, inactive data stored on-premises takes up valuable storage resources that could be tapped for other initiatives.
To free up on-premise infrastructure and avoid unnecessary future spend, we recommend these steps:
- Optimize virtual machine resources: Optimizing workload placements and right-sizing VM allocations addresses inefficiencies by addressing risk and capacity waste. This increases efficiency by reclaiming resources from over-sized Virtual Machines (VMs). At the same time, increasing VM density by rebalancing VMs helps to safely address workload requirements and avoid resource contention.
- Optimize on-premise storage: While not a direct cost reduction, optimizing on-premise storage allows you to extend the life of existing storage and defer capital costs. Tiering storage to the cloud automates the categorization of active and inactive data. By moving inactive data to a lower-cost cloud storage provider, you can free up on-premise capacity for new projects and pay for additional storage at a lower monthly rate.
Next Steps to Finding Cost Savings in Your Environment
Finding short-term opportunities and immediate steps to reduce infrastructure spending may require the help of an experienced and specialized solutions provider like Softchoice.
We offer the following solutions to assist organizations like yours to find and take advantage of these savings opportunities.
- Cloud Cost Assessment: Analyze your existing public cloud workloads to uncover immediate cost-savings opportunities and improve visibility into cloud cost drivers.
- Data Center Technology Review: Pinpoint opportunities to optimize infrastructure with the goal of freeing up existing capacity to offset future capital expenses. The review targets server, storage, virtualization, hybrid cloud, backup and file systems.
- Cloud Data Tiering Accelerator: Identify inactive data stored on-premise that could be moved to lower-cost public cloud storage to free up on-premises capacity.
Our team of licensing and technology vendor experts are ready to help you find efficiencies wherever you are in your journey from response to recovery.
Looking for help to find and address cost savings opportunities in your IT environment?