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Fighting Against Rising Costs of the Cloud

Written by Mike Carpenter on . Posted in , .

At OpenArc, we specialize in creating a wide range of custom, cloud-native software solutions for our clients. Our projects span from mobile backends and service-based platforms to IoT-enabled analytics solutions. Most of our current developments are deployed on major public cloud platforms like Azure, AWS, and GCP. However, many of our clients are often surprised by the expenses associated with operating their workloads in these cloud environments.

We appreciate the flexibility, reliability, and extensive range of services offered by the hyperscalers. However, for many workloads, especially those of our small to medium business (SMB) clients, we’ve discovered more cost-effective alternatives that better meet their needs.

These days, we’re migrating almost all of our SMB clients to DigitalOcean (DO). Thanks to DO’s unique pricing model, these clients can achieve savings of up to 50% compared to hyperscalers. DigitalOcean offers robust options for running various workloads, whether through their managed PaaS compute and storage or their VMs and networking infrastructure. They also hold essential cybersecurity certifications and support HIPAA workloads on some services. It’s not about compromising quality for cost; it’s about selecting the right workloads for the platform. Our experience with both DO’s team and their product has been exceptional, leading us to become a DO partner.

Key Considerations for Managing Cloud Costs

  • Explore Multi-Cloud or Hybrid Solutions: Consider a multi-cloud or hybrid cloud approach to optimize costs and avoid vendor lock-in. When building a new software product, design it to be cloud-native to avoid being locked in to a single provider.
  • Optimize Resource Allocation: Regularly review and right-size your cloud resources to avoid over-provisioning and underutilization.
  • Conduct Regular Audits: Regularly audit your cloud expenses and resource usage to identify areas for potential cost savings. If existing product costs become too high, evaluate what a migration would entail and identify which cloud providers best support your specific workload.
  • Negotiate with Providers: If you have substantial cloud usage, don’t hesitate to negotiate pricing and terms with your cloud provider.

Making the Most of Your Cloud Investment

By taking these considerations into account, you can make informed decisions that align your cloud strategy with your business goals, ensuring you maximize value and control expenses. At OpenArc, we are committed to helping our clients navigate the complexities of cloud computing, delivering solutions that are both innovative and economically sound. Contact us today, and let us guide you through your cloud journey!

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