Cloud Cost Optimization: 13 Tips for Controlling Costs

Cost optimization in cloud computing is a critical practice for ensuring that you maximize the efficiency and value of your cloud investments. Here’s how you can approach cost optimization effectively:

Cloud Cost Optimization Tips from Cloud Experts

Right-Sizing Services

Assess and adjust your cloud resources to accurately match your workload needs, scaling down over-provisioned resources to avoid paying for what you don’t use. Monitoring resource utilization can highlight opportunities for this adjustment.

Using Reserved Instances or Savings Plans

Take advantage of discounts offered by cloud providers for committing to resources over a fixed term. Analyzing steady-state usage will help you decide when to purchase reserved instances or commit to savings plans, significantly reducing costs.


Implement auto-scaling to dynamically adapt the number and size of running instances based on real-time demand. This ensures you’re paying only for the resources you need at any given moment.

Spot Instances

For workloads with flexible scheduling, using spot instances can offer substantial discounts compared to on-demand pricing. However, the provider can interrupt these instances, so they’re best used for non-critical tasks.

Optimizing Storage

Select the appropriate type of storage for your needs and regularly clean up old or unnecessary data to minimize storage costs. Different storage options come with varying pricing models, affecting overall costs.

Managing Data Transfer Costs

Be mindful of the costs associated with data transfer within the cloud environment and when data moves in or out of the cloud. Optimizing network architecture can help reduce these expenses.

Implementing Cloud Budgets and Alerts

Setting up budgets for your cloud expenditure and configuring alerts for when spending approaches or exceeds these budgets can prevent unexpected costs and foster proactive resource management.

Leveraging Cloud-Native Services

Cloud-native services, like serverless computing, can be more cost-efficient than traditional models since you pay only for the execution time of your functions, not for idle server capacity.

Consolidated Billing

For those managing multiple accounts, using consolidated billing features can simplify billing management and potentially unlock additional discounts through volume pricing.

Regularly Review and Optimize Subscriptions

Continuously review your cloud services and subscriptions to ensure they align with your current needs. Cancel or downgrade any services that are no longer necessary.

Cost Allocation Tags

Organize your cloud resources with cost allocation tags to facilitate chargeback and showback processes. This makes it easier to track where and why costs are incurred.

Cloud Cost Management Tools

Utilize tools provided by cloud providers or third-party vendors for insights into your cloud spending. These tools can help identify areas for cost savings.

Negotiate Contracts

For substantial cloud investments, negotiating contracts with providers can secure better pricing or benefits, reflecting your commitment and usage level.

Adopting these strategies requires continuous monitoring and adjustment of your cloud resources and usage. By staying vigilant and responsive to changing needs and opportunities, you can ensure your cloud computing strategy remains both cost-effective and powerful.

Maximize your cloud efficiency and savings with Brokkr Labs’ cloud cost optimization services—schedule your consultation today.

Photo credit: NAMYNOT Inc.

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