Cost-Efficiency in Private Cloud Infrastructures: Strategies and Best Practices

Implementing a private cloud infrastructure can provide organisations with increased flexibility, scalability, and control. However, private clouds also come with substantial costs related to hardware, software, maintenance, and operations. To maximise the return on investment of a private cloud, organisations need to focus on optimising cost efficiency. This article provides an overview of best practices and strategies to help reduce expenses and improve the cost-benefit ratio of private cloud infrastructures.

Top Strategies for Optimising Private Cloud Cost Efficiency

Right-size infrastructure capacity: One of the main reasons private clouds become excessively expensive is over-provisioning – deploying more capacity than is actually utilised. Continuously monitoring and right-sizing capacity based on current and projected needs can significantly cut costs. Using automation and predictive analytics tools can make right-sizing easier.

Leverage spot instances and auto-scaling: Using spot instances and auto-scaling groups allows organisations to automatically add or remove capacity based on demand. This prevents overspending on unused capacity during slow periods but ensures application performance during spikes.

Also Read – Creating a Cloud Exit Strategy: A Guide to Cloud Repatriation

Implement reserved instances: For stable, predictable workloads, using reserved instances can offer substantial savings compared to on-demand pricing. Savings between 30-75% are common with 1-3 year reserved instance commitments.

Schedule resources to stop when not in use: Resources left running 24/7 accumulate charges even when idle. Implementing start/stop schedules aligned with usage patterns can achieve savings of 10-15%.

Choose lower-cost storage options: Evaluating if data requires high IOPS or lower latency storage can identify cost savings from using lower-priced object or archive storage options instead of block storage. Storage costs account for over 30% of typical cloud bills.

Best Practices for Optimising Private Clouds

Beyond major cloud cost optimisation strategies, organisations can also implement various operational best practices to incrementally improve efficiency:

Consolidate workloads – Reduce the number of servers and resources needed through workload consolidation and elimination of resource silos.

Choose region wisely – Locate infrastructure in regions with lower energy and real estate costs for baseline savings.

Eliminate unused resources – Shut down servers, databases, and services not being utilised to avoid charges.

Downsize oversized instances – Switch to lower-cost instance families for non-resource intensive applications.

Purchase RI’s before launching instances – Avoid on-demand charges by first reserving capacity at discounted rates.

Use tags extensively – Detailed tagging improves visibility into ownership and usage needed for optimisation.

Analyse usage data – Tools like AWS Cost Explorer allow analysis to right-size and identify waste.

Pool test/dev resources – Consolidate sandboxes and non-production resources instead of provisioning individually.

The Bottom Line

Implementing methodical cost optimisation practices for private cloud infrastructures requires cross-team collaboration and centralised oversight. The potential for substantial savings makes the effort worthwhile. Organisations that create efficiency targets, measure progress, and institute cloud governance maximising their infrastructure return on investment.

Also Read – Unleashing the Power of Turnkey Managed Cloud Services

Unlocking cost-efficiency in your private cloud infrastructure is paramount for sustainable and optimized operations. At Apiculus, we understand the intricacies of managing private cloud environments. Our proven strategies and best practices seamlessly integrate with your infrastructure, ensuring optimal resource utilization and cost-effectiveness. Experience firsthand how our solutions can transform your private cloud operations. Request a live demo today and discover the power of cost-efficient, high-performance private cloud management with Apiculus.

Kshitish Purohit

Kshitish is a ‘startup expert’ and has been involved with early stage startups, seeing various phases of growth, for more than 15 years. A specialist in Product Management, User Experience, Technology and Product Growth/Strategy, Kshitish is a seasoned entrepreneur with deep expertise in building enterprise products and horizontal/vertical SaaS. Kshitish did his PG in Product Design from NID, Ahmedabad.

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