How MeghOps is Solving Excessive Cloud Cost Issues?

·

9 min read

Cloud cost optimization is the practice of monitoring, measuring, and controlling cloud spend on providers like AWS, Microsoft Azure, and Google Cloud. The goal is to find ways to optimize costs and maximize your cloud investment.

However, many organizations face various challenges when it comes to cloud cost optimization. In this article, we will explore some of the common reasons why cloud cost optimization is so challenging and how to overcome them using MeghOps Cloud Cost Optimization Solutions.

Some Real-Life Examples of Cloud Bill Shock

Some real-life examples of cloud bill shock in detail are:

Milkie Way is a start-up that provides a platform for creators to monetize their content. They were testing a free database plan on Google Cloud Platform (GCP) with a billing budget of $7. However, they accidentally triggered a massive amount of data processing and storage that exceeded their budget and free tier limits. They received a $72,000 bill for 2 hours of GCP services. They were able to resolve the issue with Google's support team and get their bill waived, but it was a stressful and scary experience for them.

Jeff Barr a well-known cloud expert and he is the chief evangelist for AWS. However, even he made a mistake with his cloud resources that resulted in a $2,000 bill for one month. He forgot to turn off an EC2 instance that he used for a demo and left it running for 23 days. He also had some unused EBS volumes and snapshots that added to his costs. He shared his story on Twitter and advised others to use AWS Budgets and Cost Explorer to avoid similar situations.

A developer used MongoDB Atlas, a cloud database service, to run a personal project on AWS. He chose the free tier plan that allowed him to use up to 512 MB of storage. However, he did not realize that his database was growing beyond that limit and he was being charged for the extra storage. He also did not monitor his email notifications from MongoDB Atlas that warned him about his usage. He ended up with a $6,500 bill for two months of MongoDB Atlas services.

These are some of the real-life examples of cloud bill shock that have been reported online. There may be many more that are not publicized or resolved privately with the cloud providers. The main causes of cloud bill shock are usually human errors, misconfigurations, lack of visibility, or lack of optimization of cloud resources.

What Makes Cloud Cost Optimization So Challenging?

Cloud cost optimization is the practice of finding ways to optimize costs and maximize your cloud investment. Cloud cost optimization is challenging because of several factors, such as:

Low-Cost Visibility

One of the main challenges in cloud cost optimization is the lack of visibility into cloud spending and how it aligns with business priorities and use cases. Many organizations don't have a clear perspective on their cloud spend and where it goes.

Without visibility, it is hard to identify and eliminate waste, allocate costs to teams and projects, set budgets and forecasts, and track return on investment. It can also lead to surprises and overspending when the cloud bill arrives.

To improve cost visibility, organizations need to use tools that can help them monitor and analyze their cloud costs and usage over time.

Complex Cloud Pricing

Another challenge in cloud cost optimization is the complexity of cloud pricing models and discounts. Cloud providers offer various pricing options and discounts that can be difficult to understand and compare. For example, AWS offers on-demand, reserved, spot, savings plan, and dev/test pricing for its services. Azure offers pay-as-you-go, reserved instances, spot instances, hybrid benefit, and dev/test pricing for its services. Google Cloud offers on-demand, committed use discounts, sustained use discounts, preemptible VMs, and free tier for its services.

These pricing options and discounts can vary depending on factors such as region, instance type, operating system, term length, payment option, usage pattern, etc. They can also change over time as cloud providers introduce new features or adjust their prices.

To navigate the complexity of cloud pricing, organizations need to use tools that can help them compare different pricing options and discounts and choose the best one for their needs. For example, AWS Pricing Calculator and Azure Pricing Calculator are tools that can help estimate the costs for different AWS and Azure services. Google Cloud Platform Pricing Calculator is a tool that can help estimate the costs for different Google Cloud services.

Unpredictable Demand

A third challenge in cloud cost optimization is the unpredictability of demand for cloud resources. It can be hard to estimate how much capacity and resources you will need in the future, especially for dynamic and scalable workloads.

If you overestimate your demand, you may end up paying for resources that you don't use or need. If you underestimate your demand, you may end up compromising your performance or availability.

To cope with unpredictable demand, organizations need to use tools that can help them scale their resources up or down according to their needs. For example, AWS Auto Scaling, Azure Autoscale, and Google Cloud Autoscaler are tools that can help adjust the number of instances or pods based on demand or custom metrics.

Poor Stewardship

A fourth challenge in cloud cost optimization is the poor stewardship of cloud resources. Some teams may overprovision resources, leave unused instances running, or forget to release resources when they are no longer needed.

These practices can result in wasted resources and unnecessary costs. For example, idle or underutilized instances can account for up to 40% of cloud spend. Orphaned resources such as unattached volumes or snapshots can also incur costs without providing any value.

To prevent poor stewardship of cloud resources, organizations need to use tools that can help them identify and eliminate waste. For example, AWS Trusted Advisor, Azure Advisor, and Google Cloud Recommender are tools that provide best practice recommendations for cost savings, such as shutting down idle instances, rightsizing underused instances, or deleting orphaned resources.

Lack of Governance Model

A fifth challenge in cloud cost optimization is the lack of governance model for managing cloud environments efficiently and cost-effectively. Some organizations don’t have a clear set of standards, policies, and processes to guide their cloud decisions and actions. This can lead to inconsistency, inefficiency, and risk in their cloud operations and costs.

To establish a governance model for cloud cost optimization, organizations need to use tools that can help them enforce rules and controls for their cloud environment. For example, AWS Organizations, Azure Policy, and Google Cloud Organization Policy Service are tools that can help define and apply policies for resource management, access control, billing, and compliance across accounts and projects.

What MeghOps are Providing To Solve Excessive Cloud Cost Problems?

Cloud cost optimization is the practice of finding ways to optimize costs and maximize your cloud investment. However, many organizations face various challenges when it comes to cloud cost optimization, such as low-cost visibility, complex cloud pricing, unpredictable demand, poor stewardship, and lack of governance model.

MeghOps is a cloud security posture management platform that helps organizations solve their cloud cost problem by providing a comprehensive and automated solution that covers compliance, security, and cost optimization.

Compliance Scans

MeghOps helps organizations stay compliant with various standards and regulations by continuously scanning their cloud accounts and detecting any misconfigurations or risks that can lead to data breaches or leaks. MeghOps supports compliance frameworks such as PCI DSS, HIPAA, CIS, and more.

MeghOps also allows organizations to onboard their external auditors and provide them with a wide view of their cloud security posture. This can help streamline the compliance audit process and reduce the time and effort required.

Security Visibility

MeghOps helps organizations get complete visibility of their cloud infrastructure with different types of charts and widgets that show the details of their resources, usage, vulnerabilities, threats, incidents, and remediation actions.

MeghOps also helps organizations improve their security posture by providing best practice recommendations for fixing the identified issues and preventing future ones. MeghOps supports security frameworks such as CIS Benchmarks, AWS Well-Architected Framework, and more.

Cost Optimization

MeghOps helps organizations optimize their cloud costs by providing a detailed view of their current and forecasted costs with different timestamps. MeghOps also identifies opportunities for cost savings by analyzing the utilization and performance of the cloud resources and providing automated cost optimization recommendations.

MeghOps uses AI to forecast the future demand and costs of the cloud resources and helps organizations plan their budget accordingly. MeghOps also helps organizations implement cost controls and policies across their accounts and projects to avoid overspending or underutilizing their cloud resources.

How MeghOps Are Solving Excessive Cloud Cost Problem?

MeghOps are solving cloud cost optimization issues by providing a comprehensive and automated solution that covers compliance, security, and cost optimization. Here is how MeghOps are solving each cloud cost optimization issue:

Low-Cost Visibility: MeghOps helps organizations get complete visibility of their cloud costs and usage by providing dashboards, alerts, and recommendations for cloud cost optimization. MeghOps also allows organizations to onboard their external auditors and provide them with a wide view of their cloud security posture.

Complex Cloud Pricing: MeghOps helps organizations choose the best pricing options and discounts for their cloud resources by analyzing their utilization and performance and providing automated cost optimization recommendations. MeghOps also uses AI to forecast the future demand and costs of the cloud resources and helps organizations plan their budget accordingly.

Unpredictable Demand: MeghOps helps organizations scale their resources according to demand by providing best practice recommendations for fixing the identified issues and preventing future ones. MeghOps also helps organizations implement cost controls and policies across their accounts and projects to avoid overprovisioning or underprovisioning.

Poor Stewardship: MeghOps helps organizations identify and eliminate waste by continuously scanning their cloud accounts and detecting any misconfigurations or risks that can lead to data breaches or leaks. MeghOps also helps organizations improve their resource efficiency and avoid paying for what they don't use.

Lack Of Governance Model: MeghOps helps organizations establish a governance model for cloud cost optimization by providing a single platform that covers compliance, security, and cost optimization. MeghOps also provides a smart workflow that helps organizations set up their entire SecOps workflow and never miss any important updates.

Conclusion

Cloud cost optimization is challenging because of several factors, such as low-cost visibility, complex cloud pricing, unpredictable demand, poor stewardship, and lack of governance model. These challenges can lead to cloud bills that exceed budgets and expectations. To overcome them, organizations need to adopt a proactive and holistic approach to cloud cost optimization that involves people, processes, and tools.

MeghOps can provide all of these to reduce cloud cost. MeghOps is actually a cloud security posture management platform that helps organizations solve their cloud cost problem by providing a comprehensive and automated solution that covers compliance, security, and cost optimization. MeghOps helps organizations stay compliant, secure, and cost-aware with its AI-based effective solution.

MeghOps supports multiple cloud platforms such as AWS, GCP, and Azure. MeghOps is the only all-in-one cloud security solution that organizations need to manage their cloud environment efficiently and cost-effectively.