{"id":50,"date":"2024-04-30T19:23:48","date_gmt":"2024-04-30T13:53:48","guid":{"rendered":"https:\/\/blogs.infosys.com\/infosys-consulting\/?p=50"},"modified":"2025-07-08T15:41:21","modified_gmt":"2025-07-08T10:11:21","slug":"a-practical-approach-to-cloud-cost-optimization","status":"publish","type":"post","link":"https:\/\/blogs.infosys.com\/infosys-consulting\/technology\/tech-transformation\/a-practical-approach-to-cloud-cost-optimization.html","title":{"rendered":"A Practical Approach to Cloud Cost Optimization"},"content":{"rendered":"<p>Organizations adopt Cloud services primarily to enjoy the benefits of CAPEX and OPEX reduction, alleviate overheads of managing IT resources whilst ensuring unlimited scalability, elasticity, and flexibility to address evolving business demands. While Cloud transformation is a top focus for the CIOs, the <strong>increasing Cloud Bill is becoming a significant pain point<\/strong> for CIOs and Business Leaders to solve.<\/p>\n<p><strong>Forbes<\/strong> recently highlighted by quoting Tirias Research forecast that, with challenging business models and emerging services such as generative AI, <a href=\"https:\/\/www.forbes.com\/sites\/tiriasresearch\/2023\/05\/12\/generative-ai-breaks-the-data-center-data-center-infrastructure-and-operating-costs-projected-to-increase-to-over-76-billion-by-2028\/?sh=538f6e727c15\">the Cloud Operational cost is expected to exceed $76 billion by 2028<\/a>.<\/p>\n<p>This article provides an insight of cost challenges, the impact, various initiatives and the Infosys approach to tackle cloud cost challenges.<\/p>\n<h3>The Problem Worth a Million Dollars!<\/h3>\n<p>A lot of CIOs are concerned that the cost of the infrastructure underneath the application layer has gone up after they were migrated to Cloud, whereas one of the key objectives to adopt Cloud was to reduce the Cost of the IT Operations significantly. <strong>In the reality it is not happening, why?<\/strong><\/p>\n<h3>Top 5 Triggers<\/h3>\n<p>The <a href=\"https:\/\/www.wsj.com\/articles\/cios-still-waiting-for-cloud-investments-to-pay-off-11664449203\">Wall Street Journal recently reported<\/a>, nearly 67% of leaders at U.S. firms across industries surveyed says that they are yet to see a significant return on cloud investments. Based on feedback from various industry leaders, the <strong>Top 5 reasons<\/strong> of cloud cost increment observed are:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-110 size-full\" src=\"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-content\/uploads\/2024\/04\/Top-Triggers.png\" alt=\"\" width=\"526\" height=\"158\" \/><\/p>\n<p style=\"text-align: center\">Figure 1: Top Triggers<\/p>\n<h3><\/h3>\n<h3>Mitigation Approach<\/h3>\n<p>Cloud Cost Optimization is a <strong>Continuous Disciplin<\/strong>e, driven by the fundamentals of people, process, and Technology <strong>to derive maximum Business Value<\/strong> from the Cloud investment made by an organization.<\/p>\n<p>We propose a <strong>Four-Phase framework<\/strong> to approach Cost Optimization and Cloud efficiency improvement.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-79 aligncenter\" src=\"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-content\/uploads\/2024\/04\/Figure-2-Framework_FINAL-1024x265.png\" alt=\"\" width=\"1024\" height=\"265\" \/><\/p>\n<p style=\"text-align: center\">Figure 2: Framework<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-77 aligncenter\" src=\"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-content\/uploads\/2024\/04\/Challenges-and-Solutions_FINAL-1024x387.png\" alt=\"\" width=\"1024\" height=\"387\" \/><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center\">Figure 3: Challenges &amp; Solutions<\/p>\n<p>&nbsp;<\/p>\n<h3>Key Leavers and Benefits<\/h3>\n<p>We consider the following are few <strong>key levers<\/strong> of cost optimization that <strong>to can be executed in timebound fashion<\/strong> to gain maximum benefits from each of the areas.<\/p>\n<p>Though Cost Optimization remains at Advanced stage of Cloud Maturity Levels, Organizations can consider starting the journey from beginner level to tackle the leavers ahead of the time.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-83\" src=\"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-content\/uploads\/2024\/04\/Figure-3-Key-Leavers-and-Benifits-Pic1_FINAL-1024x465.png\" alt=\"\" width=\"1024\" height=\"465\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-81 aligncenter\" src=\"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-content\/uploads\/2024\/04\/Figure-3-Key-Leavers-and-Benifits-Pic2_FINAL-1024x431.png\" alt=\"\" width=\"1024\" height=\"431\" \/><\/p>\n<p style=\"text-align: center\">Figures 4: Key Leavers &amp; Benefits<\/p>\n<p>&nbsp;<\/p>\n<h3>Power of Tools and Technology<\/h3>\n<p>Cost Optimization opportunity identification and analysis will be challenging without exploiting the power of the Tools and Technologies. A combination of reference Tools and Technologies listed below can be used by organizations.<\/p>\n<p><strong>Cloud Native Tools:<\/strong>\u00a0 Built-in native tools such as Azure advisor, AWS Trusted Advisor etc. that provides cost optimization recommendations via cloud service portals.<\/p>\n<p><strong>Power BI Dashboards:<\/strong> Provide visual representation of Cloud usage, Spent, Top Category identification, Drill Down Analysis of individual resources etc.<\/p>\n<p><strong>3rd Party Tools:<\/strong> Offers independent view of Cloud Usage and spent, Cost drill down analysis, Opportunity identification, automation, reporting etc.<\/p>\n<h3>Conclusion<\/h3>\n<p>Business Leaders are in continuous search for innovative solutions and value creation; however, the current economic situation is further constraining CAPEX and OPEX budgets to invest in such demands. With organizations adopting Generative AI in the near future, cost of cloud, if not managed well, will overshoot many folds. Cost Optimization is a great value-added service to take out unanticipated costs from OPEX budget and re-invest in new business demands.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Organizations adopt Cloud services primarily to enjoy the benefits of CAPEX and OPEX reduction, [&hellip;]<\/p>\n","protected":false},"author":608,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[267],"tags":[30,322,29,32,31],"coauthors":[27,25,26,33],"class_list":["post-50","post","type-post","status-publish","format-standard","hentry","category-tech-transformation","tag-capex","tag-cloud","tag-cloud-cost-optimization","tag-cloud-services","tag-opex"],"acf":[],"_links":{"self":[{"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/posts\/50","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/users\/608"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/comments?post=50"}],"version-history":[{"count":16,"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/posts\/50\/revisions"}],"predecessor-version":[{"id":76,"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/posts\/50\/revisions\/76"}],"wp:attachment":[{"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/media?parent=50"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/categories?post=50"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/tags?post=50"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-consulting\/wp-json\/wp\/v2\/coauthors?post=50"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}