For decades, we have become used to buying IT assets and using them whenever we want. Does it really matter the server we have isn’t running at full capacity 50% of the time? In terms of overall efficiency, yes. But, we already bought it, so the only thing we pay for is electricity, which is not top of mind for almost anyone.
Cloud computing changes that.
When you start using Cloud computing services (e.g. AWS, Azure, Google, etc.), you pay for what you use. This means, anytime the compute resource is not running at full capacity, you are overpaying. Yet, this is not something that we are used to tracking and unless your organization deployed Cloud Spend Management and/or Cloud Management Platform solutions, something we are probably unaware of.
But, what’s the big deal? Aren’t these cloud compute services really inexpensive? That depends on what specific Cloud Instance you are subscribing to and how long it’s running.
Let me give you a couple of examples.
Azure General Purpose B1S instance (1 vCPU, 1GB RAM, 4GB temporary storage) costs $0.0104 per hour (that’s less than a quarter per day!) running Linux or Windows. Even after a year, that’s only $91.104. So, how much can I save? Not much. If I have a hundred of these running that’s still not a lot.
But, how many applications can you run on such a system?
OK, let’s beef up the specs.
How about B4MS (4 vCPU, 16GB RAM, 43GB temporary storage)? The price goes up to $0.166 per hour, or $1,454.16 per year. If we multiply this by a hundred, the numbers are starting to get bigger. But, that’s a hundred virtual machines, and the cost is less than having multiple physical servers + VMs (and virtualization software licenses and OS licenses). But let’s say you can save 20% of that cost – for a hundred of these Cloud instances that’s about $29,000 per year. What if you have a thousand of these? Numbers start adding up quickly.
My recommendation is to get a Cloud Spend Management tool. They really aren’t that expensive and they will pay for themselves. There are many choices in the market. You can even use native tools offered by Cloud Providers, but they are not designed to manage “other clouds”, so not a great choice, unless you are using a single Public Cloud vendor.
Cloud computing changes that.
When you start using Cloud computing services (e.g. AWS, Azure, Google, etc.), you pay for what you use. This means, anytime the compute resource is not running at full capacity, you are overpaying. Yet, this is not something that we are used to tracking and unless your organization deployed Cloud Spend Management and/or Cloud Management Platform solutions, something we are probably unaware of.
But, what’s the big deal? Aren’t these cloud compute services really inexpensive? That depends on what specific Cloud Instance you are subscribing to and how long it’s running.
Let me give you a couple of examples.
Azure General Purpose B1S instance (1 vCPU, 1GB RAM, 4GB temporary storage) costs $0.0104 per hour (that’s less than a quarter per day!) running Linux or Windows. Even after a year, that’s only $91.104. So, how much can I save? Not much. If I have a hundred of these running that’s still not a lot.
But, how many applications can you run on such a system?
OK, let’s beef up the specs.
How about B4MS (4 vCPU, 16GB RAM, 43GB temporary storage)? The price goes up to $0.166 per hour, or $1,454.16 per year. If we multiply this by a hundred, the numbers are starting to get bigger. But, that’s a hundred virtual machines, and the cost is less than having multiple physical servers + VMs (and virtualization software licenses and OS licenses). But let’s say you can save 20% of that cost – for a hundred of these Cloud instances that’s about $29,000 per year. What if you have a thousand of these? Numbers start adding up quickly.
My recommendation is to get a Cloud Spend Management tool. They really aren’t that expensive and they will pay for themselves. There are many choices in the market. You can even use native tools offered by Cloud Providers, but they are not designed to manage “other clouds”, so not a great choice, unless you are using a single Public Cloud vendor.
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