7 Ways Enterprises Can Reduce the Cost of Cloud

June 7, 2023 / Cloud

Cloud technology has transformed the business landscape, enabling organisations of all sizes to access flexible and scalable computing resources without having to invest in expensive on-premises infrastructure. However, as cloud usage grows, so do costs. To remain competitive, enterprises must find ways to reduce cloud expenses without sacrificing performance or security. In this article, we will discuss seven strategies that can help enterprises reduce the costs of cloud technology.

Optimise cloud infrastructure

One of the key ways to reduce cloud costs is to optimise cloud infrastructure. Cloud providers offer a variety of services that can help enterprises optimise their environment, such as auto-scaling, reserved instances and spot instances. By carefully selecting the right mix of services and configuring them properly, organisations can save money without sacrificing performance. For example, auto-scaling allows resources to be added or removed automatically based on workload demand, reducing costs during periods of low usage. Similarly, reserved instances allow organisations to pay upfront for a discounted rate, reducing costs in the long term.

Use cloud cost management tools

These tools provide real-time visibility into cloud usage and costs, allowing enterprises to identify areas where they can reduce expenses and make informed decisions about their cloud spend. For example, usage reports and cost forecasting can help organisations forecast their cloud spend and identify potential cost savings. Additionally, cost management tools can provide alerts when usage exceeds predefined thresholds, allowing corrective action to be taken quickly.

Adopt a multi-cloud strategy

Adopting a multi-cloud strategy can help enterprises cut cloud costs by enabling them to select the most cost-effective cloud services for each workload. By leveraging the strengths of different cloud providers, organisations can reduce their overall cloud expenses. For example, a workload that requires a high level of computing power could be run on a cloud provider that specialises in compute services, while a workload that requires extensive storage capabilities could be run on a cloud provider that offers cost-efficient storage solutions. Additionally, a multi-cloud strategy can help organisations avoid vendor lock-in, enabling them to negotiate better pricing and take advantage of price reductions or promotions offered by different cloud providers.

Managed and serverless computing

Managed and serverless computing are two different cloud models that both offer cost-saving opportunities. Managed cloud typically refers to a cloud computing environment where the enterprise retains some level of control and responsibility for managing the underlying infrastructure. In a managed cloud environment, the organisation typically provisions and manages the resources needed to run its applications, including servers, storage and networking. However, as the cloud provider manages the physical infrastructure, including hardware, security and maintenance, firms can save money by not having to carry these management tasks out by themselves.

Serverless cloud, on the other hand, is a cloud computing model where the cloud provider manages the entire infrastructure, including the servers, storage and networking, and the organisation only pays for the compute time used by their application. In a serverless environment, the organisation does not need to manage the underlying infrastructure, and the cloud provider automatically scales resources based on demand. Serverless environments are ideal for organisations with fluctuating workloads or sporadic usage patterns, as they allow for cost savings by eliminating the need to provision and manage resources that are not being used.

Implement cost-efficient storage solutions

Cloud providers offer a range of storage options, each with different performance characteristics and costs. By selecting the right storage option for their workloads, enterprises can achieve significant cost savings. For example, archival storage is typically less expensive than standard storage and is ideal for long-term data that is rarely accessed. Similarly, cloud providers offer various tiers of storage, each with different performance characteristics and costs, allowing cost and performance to be balanced based on specific needs. Additionally, organisations can take advantage of cloud provider cost optimisation tools, such as lifecycle policies, which automatically move data to lower-cost storage tiers based on age or usage patterns.

Use automation

Automation can help enterprises reduce cloud costs by reducing the time and resources required for manual tasks and enabling more efficient resource utilisation. By automating routine tasks, such as resource provisioning, scaling and deployment, enterprises can streamline their cloud operations and reduce the time and effort required to manage their cloud environment. This can also help to minimise the risk of human error, which can lead to costly mistakes and downtime. Additionally, automation can help to optimise resource utilisation by dynamically scaling resources based on workload demand and usage patterns. For example, automation can be used to turn off resources during periods of low demand, minimising costs while maintaining optimal performance.

Choose the right pricing model

Choosing the right pricing model can help enterprises cut cloud costs by aligning cloud spending with their specific needs. Cloud providers offer a variety of pricing models, including pay-as-you-go, reserved instances and spot instances, each with its own cost structure and benefits. Pay-as-you-go pricing models charge based on the actual usage of cloud resources, allowing organisations to pay only for what they use. Reserved instances, on the other hand, offer a discounted rate for a specified period, allowing a lower rate to be locked in for predictable workloads. Spot instances, where enterprises bid on unused compute capacity in the provider’s data centres, offer even greater discounts but are subject to price fluctuations based on demand. By selecting the right pricing model for their workloads, organisations can achieve significant cost savings without sacrificing performance or reliability.


Reducing cloud technology costs requires a strategic approach that balances cost reduction with performance and security. By optimising infrastructure, using cost management tools, adopting a multi-cloud strategy, leveraging managed or serverless computing, implementing cost-efficient storage solutions, using automation and choosing the right pricing model, enterprises can significantly reduce their cloud expenses.

For more information about our managed cloud solutions, visit Hyperslice.com.


  • Thomas Worthington

    I am an enthusiastic and original writer who loves to share my skills and views on website hosting, development and technology. I am curious and eager to learn about the latest advances and innovations in the web industry, and I always make sure to provide accurate and helpful information to my readers.

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