Take Control Of Your Cloud Spend

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Take Control of Your Cloud Spend Introduction & Challenges Today’s world of cloud computing is complex. The majority of users have moved beyond initial cloud adoption into a multi-cloud environment. In fact, a recent survey conducted by Ostrato found that almost two out of three (65%) businesses report implementing more than one cloud service in their IT departments. Of these respondents, 88% are planning on increasing their usage of cloud services during the next twelve months. As businesses continue to incorporate additional cloud services into their operating models, they often find themselves faced with skyrocketing bills as they struggle to juggle public, private and hybrid cloud environments. Increasing amounts of administration…show more content…
Reserved Instances vs. On-Demand When purchasing an on-demand instance, you will pay a fixed rate by the hour, for as many or as few hours as you choose. This is the preferred option for an instance needed for a short or unpredictable length of time. For steady state and predictable applications, however, a reserved instance is the cheaper option. With a reserved instance, you pay a single fee for a fixed duration, at a much lower per-hour cost than an on-demand instance. Through AWS, you can choose a one- or three-year contract. Contracts of other lengths may be purchased through the Amazon EC2 reserved instance marketplace. Through this marketplace, you can also sell your own previously purchased instances that you no longer need. Per-Hour vs. Per-Minute Pricing If you do select on-demand pricing, you should still consider the length of time needed to perform your processes. When working in very short time periods, per-minute pricing can provide additional savings. Generally, per-hour pricing will charge for the full hour, even if only a fraction is used. Google Compute Engine is an example of a provider that offers per-minute pricing options, or “sub-hour billing.” Instances are charged per-minute, with a ten-minute minimum. Sustained Usage Price Reductions Some providers also offer price reductions for sustained usage of instances. Google
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