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How Cloud Optimization Minimizes Waste and Maximizes ROI

Do you know what’s stopping you from getting the most out of your cloud investment? Unoptimized cloud applications. They unnecessarily eat the resources, increasing the overall cost. Cloud optimization saves you money while maximizing the ROI.

How Cloud Optimization Minimizes Waste and Maximizes ROI

The Pitfalls of Neglecting Cloud Optimization 

Before we even tell what cloud optimization is, know what happens if you don’t optimize the cloud applications. 

  • Your applications will load slowly.
  • It may crash unexpectedly or disrupt the workflow.
  • Bugs and errors may occur frequently.
  • You may lose data and customers as unoptimized cloud applications are easy to hack.

How to ensure your applications are secure on the cloud? Optimization is the answer. 

What is Cloud Optimization?

Cloud application optimization is the same as optimizing your mobile applications. It makes sure every application that runs on the cloud delivers maximum performance. The application layer is the main focus here. 

It also helps in deciding the right amount of resources to meet the workload demand while keeping the cost minimum. In simple words, cloud optimization is a way to maximize an application’s performance and ROI. 

Also Read: Cloud Migration Strategies for Successful Cloud Transformation

Benefits Beyond Cost and Performance Maximization

1. Improved Visibility 

You cannot improve what you cannot see. The same goes for the performance of your cloud app. Cloud optimization helps you look into the app’s performance and know how to effectively use the resources. It also shows what is slowing down the applications. 

2. Better Utilization

Cloud service providers like Amazon Web Services offer more than 200 features. Your cloud app doesn’t use all the 200 or those included in your cloud subscription. 

They just add dead weight to your budget and application. Optimization removes this unnecessary load, making your cloud environment light and more efficient. It also cuts your bills on cloud computing platforms. 

3. High Security 

Even if the biggest advantage of being on the cloud is higher security than traditional platforms, the reality is different. Cloud application security is a real concern among businesses worldwide. 

Optimization helps you ensure everything is encrypted, secure, and protected from internal and external threats. It also helps in managing your cloud applications within industry standards. 

Also Read: Strategies to Mitigate Cloud Security Threats

What to Optimize on the Cloud?

Not everyone on the cloud is getting its full advantage. They don’t know what and how to optimize. There are four key areas. 

1. Innovation

Cloud service providers keep on updating and releasing new functionalities to make their platforms highly useful. However, keeping an eye on each release is tough without a dedicated department in your IT. 

Creating a Cloud Center of Excellence can do that for your business. It looks for what’s new in each release and how your business can take advantage of it. 

2. Consumption

Getting most of the cloud is all about finding the right balance between needs and consumption. You may not be consuming the right cloud resources according to the needs. So, the first thing is to evaluate the need and then pick the right resources. You can go one step further with machine learning to predict future needs. 

3. Cost

Many businesses like you struggle to manage the cost of cloud management. This is because they either lack insights into their spending or inaccurately calculate the cost. 

Using cost monitoring tools is one of the best strategies to optimize cloud resources. Popular service providers like AWS and Azure offer such tools that help in understanding where and how you spend. 

For example, AWS’s Cost Explorer provides insights like cost per customer, team, and feature. Azure cost management tool does the same and lets you set a budget notification. However, it does not give you the granular details like cost per deployment.  

Additionally, these tools don’t work across multiple cloud environments. Using third-party services such as CloudZero helps you optimize cost even if you use multiple cloud platforms. 

4. Performance 

Optimizing cloud app performance means choosing the right type of cloud services and resources. Here are a few ways to do this:

  • Decide the right size instance for your app.
  • Use a content delivery network to reduce the traffic jam on the cloud.
  • Balance the traffic load by distributing traffic from your applications to multiple servers.
  • Use caching to store frequently used data.
  • Use infrastructure-as-code tools to autoscale the cloud resources according to utilization, time, and cost.

A Few More Cloud Optimization Strategies  

Spot Instances

Cloud service providers offer spare computing space to manage less critical and time-sensitive workloads. These spaces are known as spot instances and are 90% cheaper than on-demand instances.

However, they can be interrupted anytime with a warning. So, identify jobs that don’t disrupt the workflow even when interrupted.  

Reserved Instances

If you know exactly what type of cloud resources you need for a longer duration, reserved instances are best. They cost 75% less than on-demand instances as several service providers offer discounts for them.

Merge Idle Resources

Instead of buying additional cloud resources during peak demands, check the under-utilized resources. Use them with load balancing and auto-scaling techniques to ensure no server or resource is overloaded.   


Businesses are increasingly spending on the cloud but struggle to manage their investment. As a result, a lot of the investment and resources go wasted. Cloud optimization is a way to minimize this waste and make the most of cloud computing platforms. 

There are various strategies to optimize the app performance, cost, and resource utilization. However, they work well only if IT and finance teams are well aware of the shared responsibility. 

Businesses can ensure this collaboration by incorporating a FinOps mindset where each team maintains transparency. Staying informed about the recent changes and pricing structures also helps here. And it’s not a one-time process. Cloud optimization is a continuous process and thus requires regular assessment and collaboration.

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