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The Hidden Costs of Cloud Computing
The Hidden Costs of Cloud Computing
Starting with your cloud infrastructure was
simple. You ran up a few instances, maybe
created an AD structure, added some storage;
as it's easily scalable you added a few more
things and the pay for what you use pricing
seemed ideal. But very quickly you've added
even more services and when you receive your
next invoice you've been landed with an
unexpectedly high bill. Now you start to
analyse the invoice but there are thousands of
line items and it can be almost impossible to
identify what is needed, what is underutilised
or poorly optimised so I'd like to give some
pointers into ways that you can tame those
costs and identify where the hidden extra
charges may be hiding.
Lets talk! It's an opportunity to learn a bit
more about us and share your cloud interests
and intentions.
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1. Unused Instances
As it's so easy to run up an instance in the
cloud it may not be surprising that one of the
biggest unnecessary costs is unused
instances, so you end up paying for services
you are not utilising. Managing change
control should include turning off instances
when they are no longer being used.
2. Under Used Instances
You need to be proactively monitoring your
usage data. Low CPU usage, bandwidth and
I/O are all indicators of underutilised servers
that could be shutdown.
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3. Orphaned Snapshots
Once you have terminated the unused
instances they attached EBS volumes are
automatically deleted. However, your
snapshots will remain on the storage and you
will still be picking up this cost until these too
are deleted. Deleting these snapshots will
produce a saving the same size as deleting
the EBS volume, so when you are sure you no
longer need them, make sure they are
deleted.
4. EBS Volumes
It is best practice to delete EBS volumes,
except for root volumes, if they are not
attached to instances as they will be charged
for whether they are used or not. It should go
without saying that you should back these up
before deleting them but we have had to
come to the rescue a few times where this has
not been the case.
5. Reserved Instances
Sometimes companies use pre-booked
resources and capacity for a one or three year
term called reserved instances (RI). This gives
a heavily discounted rate as the company has
committed to pay for all the hours during
their contract term. But if these reserved
instances are not used then the savings are
wasted and can result in high cost than if the
company had chosen to use a pay as you go
model. If you have purchased reserved
Instances that you are not using you may
want to consider selling them on the AWS
marketplace.
6. Data Transfer
Transferring data out of EC2 incurs a charge,
this is dependant on what region the data
resides in, where it is going and of course how
much data is being transferred. Because of
these variables moving data across services in
different regions can throw up unexpected
costs. Understanding these costs and
planning accordingly can save money.
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7. Elastic IP (EIP) Addresses
Additional EIPs are charged over and above
the free one allocated with each EC2 instance,
these need to be managed to ensure you are
not paying for unused services.
Unless you plan, monitor and proactively
manage your cloud infrastructure the cloud
may well be more expensive than your old inhouse deployment. Most organisations are
running multi-cloud, so while we have looked
primarily at AWS in this piece Microsoft Azure
has just as many opportunities for hidden
costs that can shock.
Operating and managing cloud infrastructure
is a complex task. It requires skills that have
not been common in most IT teams and as
such, it can lead to hard conversations and
decisions if the costs have not been budgeted
for. Working with specialists who are
experienced in planning, deployment and
management of cloud infrastructure will give
you access to these skills and provide you with
manageable, planned costs which are lower
than traditional infrastructure deployments.
Don’t leave it to chance, speak to our team
today and we will work with you to tame your
costs.
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