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Cloud Cost Optimization: What is it & Why Your Organization Needs it

By Heather Robinette
four people sitting at a table looking at a laptop and talking to each other

As mentioned in a previous blog about myths of cost optimization, “cost optimization is the proactive strategy of driving spending and cost reduction while also maximizing business value.” In other words, your organization is focused on bringing as much value as possible for the least amount of money, not necessarily cutting costs. This is a common misconception, but that is for another discussion. I’d recommend checking out the blog on cost optimization vs cost cutting if you want to read more on it.

Today, we are going to focus on why your organization needs cost optimization and specifically for cloud costs. Given the events of 2020, most companies have made the move to the cloud in some form. If it is a new undertaking, most likely it was something small to get started. Most companies don’t move to the cloud overnight.

So why does your organization need cloud cost optimization?

  1. Less Waste
    While public cloud spending has dramatically grown this year, so has cloud waste. Ensuring your company doesn’t fall victim to increased cloud waste is a key benefit of why your organization should be optimizing cloud costs. From turning unused resources off to making sure you are using the appropriate sizes you can make sure you are only paying for what your company needs.


  1. Lower Costs
    If done right, you can expect to see lower cloud costs. You can look at discount options and if they make sense for your organization, as well as making sure you are maximizing the usage and not paying for more than you need when it comes to cloud. Unlike hardware, you don’t have to buy the server you think you’ll grow into in three years, but rather what you need right now.

  2. Increased Profitability
    Simply by being able to decrease expenses can help your organization increase profitability.


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Tags: Cost Optimization

azure cost optimization