Welcome to the first edition of our Cloud Cost Optimisation newsletter! In this edition, we’ll be focusing on understanding your cloud usage and one of the most straightforward steps to save cost right-sizing.

One of the first steps towards optimising your cloud costs is understanding what you’re using. Many organisations don’t clearly understand their cloud usage, leading to over-provisioning and overspending.

To start, take a look at your cloud usage data. Most cloud providers offer detailed usage reports that can help you understand how much you’re using, when, and where you’re using it. Use this data to identify areas where you’re over-provisioning or not fully utilising resources.

Another critical aspect of understanding your cloud usage is tracking who’s using what. Make sure you have a system to track user activity and usage patterns, and consider implementing cost allocation tags to help you track expenses by team or department.

By understanding your cloud usage, you’ll be better equipped to identify areas where you can optimise your costs.

One of the most effective ways to optimise your cloud costs is to ensure you’re using the right resources for your workload. Many organisations over-provision resources out of an abundance of caution, but this can lead to wasted resources and unnecessary expenses.

To right-size your resources, start by analysing your usage data to determine how many resources you actually need. Consider factors like usage patterns, workload demands, and peak usage times. Then, adjust your resources accordingly.

For example, you may find that you consistently use only 50% of your CPU capacity during peak hours. In this case, you could reduce your CPU capacity to match your usage patterns better and save on costs.

You can optimise your costs by right-sizing your resources while still meeting your workload demands.