Time to read: 8 minutes 29 seconds | Published: March 03, 2025

Cloud cost optimization
What is cloud cost optimization?

Cloud cost optimization strategically reduces cloud costs while retaining performance, scalability, and dependability. It includes optimizing infrastructure resources, right-sizing resources, implementing cost-effective pricing methods, and automating cloud infrastructure management. The objective is to improve the management of and minimize capex and opex costs associated with cloud infrastructure and operations.

Two cloud engineers discussing cost optimization of cloud.
  • Cloud cost optimization explained
  • Why is cloud optimization so important?
  • Why is controlling cloud costs so difficult?
  • What are the cloud cost optimization strategies and best practices?
  • How HPE helps you in cloud cost optimization?
Cloud cost optimization explained

Cloud cost optimization explained

Cloud cost optimization reduces costs while retaining control, performance, scalability, and reliability. It incorporates reducing technical debt, right-sizing resources, streamlining operations, and using cost-effective pricing methods to optimize efficiency. The idea is to minimize costs while maximizing performance and quality.
Key cloud cost optimization factors:

  • Right-sizing resources: Matching compute, storage, and network resources to workload requirements to avoid overprovisioning and underutilization.
  • Using reserved & spot instances: Committing to long-term plans (reserved instances) for predictable workloads and using spot instances for short, cost-effective computing.
  • Auto-scaling & load balancing: To avoid waste and efficiently distribute workloads, auto-scale, and load balance resources based on demand.
  • Storage optimization: Remove unnecessary backups, tiered storage, and archive seldom-used data to save storage expenses.
  • Monitor and budget: Tracking expenditure, setting budget restrictions, and preventing expense spikes with cloud-native tools (e.g. AWS expense Explorer, Azure Cost Management).
  • Serverless & containerization: To improve resource use and save expenses, adopt serverless computing (e.g. AWS Lambda, Azure Functions) and containerization (e.g. Kubernetes, Docker).
  • Streamlining operations: Reduce the time, effort and complexity of monitoring and managing hybrid cloud environments to improve operating efficiencies, governance, and performance.
  • Multi-cloud and hybrid cloud strategies: Comparing hyperscalers pricing and adopting hybrid solutions to balance on-premises and cloud costs.

Using these tactics, businesses can reduce operating and infrastructure costs, improve performance, and optimize cloud investment value.

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