Utilizing public cloud services is crucial for companies looking to expand and innovate in today’s digital landscape. However, managing costs efficiently has proven to be a challenge for many organizations.
The rise in cloud waste is a clear indication of this issue. Unused or underutilized resources continue to rack up expenses, costing companies millions of dollars. It is essential for businesses to implement new strategies and tools to tackle this problem effectively.
Akamai was among the first to address this issue. The company faced soaring public cloud expenses and recognized the need to optimize spending and eliminate wasteful usage. Through Project Cirrus, Akamai managed to reduce their public cloud bills by 40% within the first year.
Akamai’s Approach to Reducing Cloud Waste
Akamai’s tactics included a detailed analysis of cloud usage. They identified costly operations running on third-party clouds and implemented hybrid solutions to cut down on waste and allocate resources more efficiently.
1. Automation and Right-Sizing Instances
Automation played a significant role in Akamai’s cost-saving strategy. By automating resource management, the company could adjust cloud resources in real-time to meet application demands accurately. This ‘right-sizing’ approach led to a 40% reduction in cloud waste and unnecessary expenses.
2. Strategic Use of Reserved Instances
Akamai strategically utilized Reserved Instances (RIs) to secure lower and more consistent pricing compared to on-demand options. Planning and reserving cloud capacity in advance resulted in savings of up to 75%.
3. Continuous Monitoring and Optimization
Akamai recognized the importance of ongoing monitoring and optimization to prevent cloud waste. By implementing a tracking system, the company could promptly address inefficiencies and avoid recurring instances of waste.
Adopting Best Practices for Cloud Waste Management
The 40% reduction in third-party public cloud costs serves as a valuable lesson for organizations grappling with similar challenges. Automation, right-sizing, and strategic use of RIs offer control over costs and waste elimination. Regular monitoring and optimization are crucial for sustaining these benefits over time.
Addressing cloud waste proactively is a smart business decision in a landscape where cloud costs can quickly spiral out of control. It is a vital step towards ensuring long-term sustainability and growth.
To delve deeper into this topic, you can access the full Akamai whitepaper here.
