6 ways to reduce Cloud Application Deployment Costs

September 13, 2017

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Cost optimization is a pressing concern for organizations that are looking to deploy cloud applications. With the help of effective migration plans and meticulous choices, organizations can minimize their cloud costs and enjoy long-term benefits. Read on to learn more:

#1 Pay attention to cloud hosting options

Most users choose to deploy their cloud apps on Infrastructure as a Service (IaaS). While IaaS may help you lower your capital cost of equipment, you still need to spend on maintenance and facilities and buy software licenses. Platform as a Service (PaaS) and Software as a Service (SaaS), on the other hand, are more budget-friendly. Both, PaaS and SaaS, eliminate the costs of middleware tools and refreshing operating systems. In addition, SaaS lets you do away with the costs of application licenses and updates as well.  

#2 Understand your Service Level Agreement (SLA)

The SLA is the document that defines the areas of responsibility for your organization and cloud service provider and charts out the cost structure of the partnership. It is important for both parties to communicate their interests and concerns to each other while drafting the SLA. Raising the right points and negotiating costs can help you make huge savings over time. However, this can only happen if you are clear about all associated costs of potential service providers.

In case you decide to break the partnership and opt for a new service provider, the costs involved need to be considered as well. It is always better to choose a provider that can easily integrate with your on-premise environment.

#3 Settle for a hybrid cloud model

A hybrid cloud consists of cloud-based and in-house IT resources. According to an IBM global study, 70 per cent of organizations that chose the hybrid cloud stated that cost was the biggest advantage of going the hybrid way. A hybrid cloud model is also a great way to optimally use your existing network and allows users to seamlessly navigate between cloud applications, thereby increasing productivity and cutting costs.

#4 Weigh cost against benefit

Break down the cost of your services by feature. Cloud providers often persuade users into purchasing additional capabilities such as dedicated hosting and RDBMS storage that users would barely need. This increases the total cost of the app deployment.  Consider every feature you pay for and only incorporate those that are needed. If certain features are not necessary, modify the application to eliminate their need.

#5 Look for cheaper alternatives

As basic as it may sound, doing your research on cloud providers that offer better pricing can go a long way in cost optimization. Small companies or startups may offer their services at a lower cost than big players. Similarly, some providers offer their services for specific customer types and may be willing to offer discounts that suit you.

#6 Use OptiSpot

OptiSpot is an algorithm that automates application deployment decisions on cloud service providers that use the spot pricing model. It helps you identify the resources you could rent to run a cloud application, map the components of the application with the rented resources and also identify the spot price bids that will minimize your total costs without compromising on performance. This method is known to yield optimal, low-cost solutions that are profoundly different from the solutions offered by non-linear programming.

Cloud applications help you achieve flexibility, agility and simplification of operations at low costs. Don’t let lack of planning stop you from reaching your business goals. While planning and research can help you optimize costs every step of the way, ensure that you don’t let your mobility take a hit when you change your cloud service.  

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56% Cloud users generated profit in 2017

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