Importance of cost analytics in multi-cloud environments
As the adoption of the multi-cloud is increasing in the enterprises, there is more focus on cost management and governance. Without the necessary guardrails, it is quite easy for organizations to waste tons of money on cloud costs. Even though cost optimization and avoiding cloud service sprawl is important in a single cloud context, multi-cloud adds additional complexity and opportunities that makes cost analytics an important component of multi-cloud management and governance. In this blog post, we will take a look into why it is crucial.
Some cost considerations in the context of the multi-cloud are:
- The competition from cloud providers will ensure that the pricing for various cloud services are in constant flux and may require continuous analysis and optimization
- Cloud providers have a varying set of services, and it requires fine-grained cost calculation and optimization
- The cloud services from different cloud providers are not the same, and any comparison may not be apples to apple comparison
- Different types of the same service may have different pricing models. For example, in the case of compute, there are pricing differences between on-demand instances, reserved instances and spot instances
To effectively manage and optimize costs in the multi-cloud context, cost analytics cannot be an add-on based on just monitoring running resources. You need to monitor everything from how various cloud services are procured (including accounting based on per account, resource type, and tags), how resources are utilized. An ad hoc add-on analytics solution may not be effective in multi-cloud environments with a diverse set of cloud services. The tool should be able to contain not just services sprawl but also underused resources or unused resources at specific times (say, weekends). Powerful cost analytics should be able to provide this across multiple cloud providers provided it is well integrated with service procurement and orchestration along with monitoring data.
Usually, cloud cost analytics is considered as an afterthought to cloud management and governance. But it is a critical component of enterprise governance policies. Having cost analytics integrated with a governance platform will ensure that cost compliance is continuously taken care. Modern cost analytics tools also take advantage of machine learning to make appropriate recommendations for organizations to save considerable costs. If you want to see how the CoreStack platform offers a powerful cost analytics tool to help your organization save costs in multi-cloud while also staying compliant to your governance policies, please contact us here.