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Cloud Cost Management Alone Won’t Fix Your Cloud Spend Problem

The pay-per-use model of the public cloud seemed too good to be true. And you probably quickly caught onto its catch: analyzing and predicting your cloud costs is like driving blindfolded hoping that the street traffic would stay the same. 

A solid cloud cost management strategy and tooling solves this problem – but only partially. Knowing what your costs are and where your costs come from isn’t going to reduce them magically. 

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Unexpected AWS Charges You Should Be Monitoring Closely

Cloud adoption has many benefits, the most notable of which being the wide range of options and price models available. Your cloud charge, on the other hand, can get confusing. If you don’t keep track of it and review it on a daily basis, the expenses can easily escalate out of control. Fast scalability, pay-as-you-go pricing, and a vast array of options and updates can make things very complicated. 

Every company should actively monitor its cloud costs, which can drive up the overall cloud bill. However, if you handle them properly, this can be avoided. Here are some AWS charges you should keep an eye on.

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How Are Zoom, Spotify, etc Slashing Their Cloud Costs by Millions?

In Q1 2021, Zoom reported that its gross margin widened to 73.9% from 69.4% in the previous quarter, primarily thanks to the optimization of public cloud resources. And Zoom is certainly not the only company that realized the value of optimizing the cloud infrastructure. As businesses migrate their workloads to the cloud and build cloud-native applications, they’re starting to realize that overprovisioning and cloud sprawl aren’t just urban legends. 

For startups, the cloud is an essential technology because of its unparalleled support for scalability. But the cloud may quickly turn into a struggle because of growing costs. Here's what a16z wrote in a recent analysis: