Overview: Engineering-Led Cost Optimization for Cloud

In our last Webinar held on the 3rd of March, Erik and Serhat talked about engineering-led cost optimization for Cloud and gave a glimpse of how CloudZero and Resmo may help companies to achieve efficiency.

Here's a snapshot of what is discussed!

Quick-Introduction

CloudZero helps companies to build more efficient systems and save money through their operations. As the CTO and founder of CloudZero, Erik Peterson will touch base with the engineering-led cost optimization under the moderation of our co-founder Serhat. 

Key Points from the Discussion

• Cloud costs are going through the roof - the reason behind

We used to be in an era of growth at any cost, and most of the companies' attitude was “Don't worry, spend the money on it.” But, the era of growth at any cost is over, and building efficient systems is now essential. So who are they to build better? Engineers. This means involving engineers in the process of building better systems is essential. 

• Startups and Enterprises - same topic, different concerns

Cost management concerns differ between small and big companies. Startups struggle with pricing and packaging, and CloudZero helps them calculate the cost per customer or feature based on different metrics such as customer activity, the frequency of logins, and so on. Erik also emphasizes that the primary focus of startups is not cost savings but rather laying a foundation for future profitability. For larger companies, visibility is crucial, as they have multiple developers rapidly iterating on projects. These companies need to prioritize cost optimization to avoid overspending.

• Calculating Cloud costs - What kind of data are taken into account?

To calculate costs, companies need to send transaction data from their systems to CloudZero. This data needs to be properly tagged to ensure accurate calculations. Once they map the costs with relevant data, engineers may clearly see who caused that cost and take action. In some cases, companies have saved thousands of dollars within just five minutes of an engineer's time by reducing the number of API calls or changing their queries.

• Resmo - CloudZero How they might work together

To ensure everything is under control while giving developers autonomy, it's important to tie security data with cloud cost optimization. CloudZero holds data on which resources are costing the most money, and by linking this data to Resmo, companies can track changes and history over time. This helps to provide context and a deeper understanding of what is happening. Armed with this information, companies can save money by avoiding unnecessary spending, such as buying additional resources in the last quarter simply because of a prior commitment.

• Top challenges companies face when it comes to cost optimization

The top challenge companies face when it comes to cloud cost optimization is properly tagging the data. Visibility is another big challenge to consider. Due to the proliferation of multi-cloud adoption, one must pull data together from many cloud providers, such as Snowflake, AWS, and others.

Also have a look at: Multi-Cloud Asset Visibility Guide

• One key piece of advice for companies struggling with cloud cost optimization

The key to cloud cost optimization is involving the people who build the solutions - engineers - and changing the culture to prioritize cost optimization. Every engineering decision is a buying decision, and companies need to consider cost efficiency at every stage of the process. 

Additionally, in 2002, Bill Gates wrote a memo on trustworthy computing in which he emphasized the need to shift focus from building new features to prioritizing security. This was necessary to restore customer faith and trust, which were at risk due to security concerns. So changing the culture and providing visibility into spending are crucial steps in achieving this goal. 

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