05 Oct Right-sizing Public Cloud Instances Can Cut Costs 20%-40%
In a recent post, we noted that many companies are struggling to control their public cloud costs, even though a key driver for moving to the public cloud in the first place was often to cut infrastructure expenses. There is a proven way to slash public cloud costs by as much as 20-40%, however: by right-sizing cloud instances.
If that’s the case, why isn’t everyone already doing it? There are a number of reasons – ranging from the psychological to the technical – why right-sizing cloud instances can be challenging. Most fundamentally, application owners are prone to over-provision IT resources in a bid to avoid resource shortages that can cause app performance issues and unhappy customers.
For example, in the public cloud, if you’ve purchased a cloud instance with four CPUs and you really only need two CPUs to run your application, you’re just wasting money. This kind of over-provisioning is probably the most common cause of waste in public cloud environments. But, why? One reason is that as companies move apps hosted on-premise to the cloud, they simply replicate their existing VM resource allocations without first determining if the app really needs all those resources. Other times the allocation recommendations come from the app vendor themselves and are blindly followed by the team. The vendor wants its clients to be happy so they suggest excessive provisioning of resources taking a “better-safe-than-sorry” approach.