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Cost Optimization on Cloud

With cloud adoption now almost universal, the renting cloud services creates new host of challenges, including managing bills populated with thousands of line items generated by instances running across the globe. A combination of rightsizing, higher virtualization and adoption of open-source can achieve significant results. Here are 10 approaches to optimizing costs on cloud.


1. Right-size your cloud instances, keep inventory to bare minimum and save up to 35%Immediate goal


Implementation timeSavings potentialTime to realize savingsCommitment required
2-3 days>20% of your overall cloud billImmediate post implementationNone

2. Shutdown unused resources and reduce storage and network costsImmediate goal


Implementation timeSavings potentialTime to realize savingsCommitment required
2-7 days~2-10% of your overall cloud billImmediate post implementationNone

3. Adopt reserved instances and save upto 60% on your compete spendsImmediate goal


Implementation timeSavings potentialTime to realize savingsCommitment required
2-3 days~30-60% of your compute bill on cloudImmediate post implementation1-year or 3-year commitment

4. Schedule your non-production instances / servers to start-stop automatically and save almost 50% of compute bills – Immediate goal


Implementation timeSavings potentialTime to realize savingsCommitment required
3-5 days~35% of your on-demand bill for non-production environmentsImmediate post implementationNone

5. Adopt spot-instances and save upto 90% on your on-demand compute spendsshort term goal


Implementation timeSavings potentialTime to realize savingsCommitment required
5-20 days~90% of your on-demand
compute bill
Immediate post implementationNone

6. Leverage storage services like Amazon S3 Intelligent Tiering and Azure’s Archival / Cold storage to reduce storage costsshort term goal


Implementation timeSavings potentialTime to realize savingsCommitment required
1-2 days (for AWS)
20-30 days (for other cloud platforms)
~20-30% of your standard
storage bill
30 days post implementationNone

7. Containerize / PaaSify your applications and reduce your IaaS spend by 50%long term goal


Implementation timeSavings potentialTime to realize savingsCommitment required
2-3 months~30% of your IaaS usage billImmediate post implementationCode and architecture changes to the application

8. Adopt open-source platforms (Amazon Linux) to save on enterprise licensing costs like RHEL long term goal


Implementation timeSavings potentialTime to realize savingsCommitment required
2-6 months~100% of your enterprise license costImmediate post implementationExtensive code and architecture changes to the application

9. Adopt a multi-cloud approach to leverage multi-vendor benefitslong term goal


Implementation timeSavings potentialTime to realize savingsCommitment required
2-6 months~30% of your existing cloud spendImmediate post implementationModerate effort in migrating to a different cloud platform

10. Ultimately good old excel sheets help you unearth insights usually missed by man and machine.

Customer success – Powerup helped a large e-commerce company save $2Million on their annual cloud spend


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