devopsy.kinsta.cloud

Author: Asim Razzaq

  • Reducing Energy Consumption With Cloud Cost Efficiency

    Reducing Energy Consumption With Cloud Cost Efficiency

    A new study from Stanford University found that it takes 75 gigajoules per year of energy for a person to have a good, long life, but the average American uses nearly four times that amount: 284 gigajoules/year. In fact, the U.S. consumes 17% of the world’s energy while accounting for only 4% of the population. 

    It’s not a new call to action that we need to do more to reduce our energy consumption. Corporations are starting to take action by implementing environmental, social and governance (ESG) programs. However, digital infrastructure is a huge contributor to energy utilization. The collective cloud now has a bigger carbon footprint than the airline industry. So, when enterprises are evaluating and managing cloud costs, they have to look beyond the economic costs and also consider the environmental cost and potential harm to the planet—they have a responsibility to use cloud services efficiently with zero waste.

    So, the questions to ask are: How do you know if your organization is using the cloud as efficiently as possible, and how do you prove the software you’re developing is cloud-efficient? An organization can have a major competitive advantage if they make cloud cost efficiency a priority for all teams involved—especially given the ongoing climate crisis and current market downturn. Below are three basic rules to ensure continuous cloud cost efficiency.

    1. Pay For and Use Only What is Needed 

    The cloud is a service that gets turned on and off, like a light switch. And, like a light switch, it should also be turned off when not in use. Also, as is the case with separate bins for trash and recyclables, organizations shouldn’t reserve large instances when a medium-sized instance will be acceptable. How much cloud is required will change over time, but it’s rooted in knowing who—which team, application, etc.—is using which cloud resource for what purpose at any given time. Ideally, no cloud resource should be left untagged and no cost unallocated, even for shared resources. Organizations can then focus on eliminating unused and underutilized resources.

    2. Understand the Impact

    Take advantage of tools that measure the carbon footprint of cloud usage. When organizations can reduce their footprint, it saves money and impacts other business metrics, such as cost of goods sold (COGS), employee satisfaction and even customer experience. Experiment with different technical levers and see how they impact the cloud costs—this will also lead to smarter choices. By empowering engineering teams with cloud cost data, organizations will enable greater efficiency from the beginning of the software development life cycle.

    3. Cultivate Conscientiously

    Cloud consumption will increase as a business grows—but is it growing efficiently? According to the Flexera 2022 State of the Cloud Report, optimizing usage is the top cloud initiative for the sixth year running, as cloud costs can spiral out of control quickly for a growing SaaS business. With accurate budgeting and forecasting capabilities, organizations can take advantage of long-term savings plans and reserved instances with confidence. In addition, addressing cost anomalies quickly will assist in the stabilization of growth. Not to mention the fact that cloud cost management products offer automated recommendations; the faster users act on cost-cutting alerts, the more money and energy will be saved in the long run.

    When an organization is reviewing cost reports and deciding which infrastructure changes to make, they should also give engineering teams real-time visibility and control over cloud costs so they can act faster and more ethically. With a corporate focus on cloud cost efficiency, organizations can brag about their reduced carbon footprint and be confident that their “Go Green” attitude is benefiting customers, employees and shareholders and, above all, the planet.

  • Four Steps to Avoiding a Cloud Cost Incident

    Four Steps to Avoiding a Cloud Cost Incident

    The recent Flexera 2022 State of the Cloud Report found that organizations waste 32% of their cloud spend, up from 3o% last year. This can be due to cloud cost incidents triggered by unused resources, malicious activity or overambitious projects and which have a massive financial impact if not found and corrected promptly.

    As an organization’s cloud infrastructure footprint matures, mapping cloud resource use and costs accurately to product lines, teams and business units becomes progressively more complicated and problematic. However, accurate cloud cost attribution is vital to understanding team resource use and determining accurate cost of goods sold (COGS) margins and is imperative to budgeting and forecasting. Organizations need reliable, granular views of the cloud environment to attribute costs back to departments and optimize a meaningful budget.

    Cloud cost spikes can blow up an organization’s budget fast and can be hard to track down, but enterprises can help protect themselves from a cloud cost incident with just a few simple steps.

    Have a Strong Tagging Strategy That Attributes Cost Granularly

    The cloud operations team needs to identify what is important to business reporting, which will help define and create a strategy for tagging. For instance, when an organization has two teams managing a particular service, the teams should safeguard the services tagged with a team identifier. Also, the teams should add another tag for the environment in which they’re running so they can allocate cloud costs across teams and environments.

    When an application uses numerous resources, like a database and storage, teams should consider adding a specific application tag and break down costs by each application. It should be noted that there is no one-size-fits-all tagging solution, so enterprises will need to determine what works and try out different strategies by adding and removing tags later.

    Understand Cloud Cost Ownership to Avoid Chaos

    Ask yourself how well your organization has attributed cloud costs to teams, applications or COGS. If the answer is “Not well,” then you are missing vital information about how your cloud costs relate to your business.

    The lack of this context or visibility into resource allocation makes it unmanageable and impossible for cloud operations owners and senior leaders to agree on who is responsible for varied expenses and resources. Manual cost attribution doesn’t scale accurately or account for shared cluster resource use across teams and applications. This creates confusion that can escalate when users arbitrarily slice data and claim ownership without accountability or clear visibility.

    What happens is that costs can sometimes be double-counted with two owners—or even missed completely with no owner whatsoever. The resulting data emerges as an inferior quality that is untrustworthy and not actionable. The inability to visualize resource use in context can dilute, hinder and even defeat cost improvement initiatives and optimization.

    Cloud costs should have an owner who can ensure that cloud spending is tied to business value. Understanding who owns which pieces will help pinpoint the cause.

    Establish and Monitor Cloud Budgets

    Historical data on cloud spending is gold—it can help forecast and budget for what should be happening with the cloud’s cost footprint. If that’s not happening, then it should be flagged and investigated.

    Once you get cost data under control, organizations can get an accurate picture of where cloud spending is taking place. However, does this match the expectations of spending? By establishing and monitoring budgets at every stage of a project, organizations can have guardrails to cloud spending and prevent costs from soaring out of control when engineers overallocate on performance “just in case.” Once budgets are in place, organizations can monitor spending and right-size resources to balance actual usage, rather than estimated usage at the start of execution.

    Over time, right-sizing resources will allow for optimal spend, as well as identify unused resources that can be shut down. Organizations should identify development and test instances left running when no longer needed and shut them off.

    Implement Cost Anomaly Detection

    Organizations can shield themselves from cost anomalies by continually monitoring and optimizing cloud costs. Cost anomaly detection can help act as a barrier to early recognition before they become problematic. This is especially effective when prompt, actionable alerts can be delivered directly to resource owners via Slack or email when their forecast exceeds the set budget. The best option would be adopting a cloud cost monitoring and optimization (CCMO) tool that gives alerts in real-time when a cost anomaly occurs. These tools must be able to detect anomalies and analyze their root cause, while also allowing visibility into what went wrong to avert similar future errors.

    Executing continuous cost monitoring and anomaly detection tools for dynamic cloud environments is essential in identifying any activity that doesn’t align with expected expenditure or diverges from an established pattern. With proper monitoring, organizations can take corrective measures before the fact.

    Unwanted and unexpected cost incidents can clean out an enterprise’s budget quickly, especially as its cloud infrastructure grows. Organizations need to practice these steps to gain a full picture view of their cloud environment.

  • Managing Cloud Governance Costs Collaboratively

    Managing Cloud Governance Costs Collaboratively

    For those responsible for managing infrastructure, the concept of governance is common, especially as it relates to cloud services. For cloud services, it’s defined as a framework that guides how end users use these services by defining and creating policies to control costs, minimize security risks, improve efficiency and accelerate deployment.

    The term is often associated with “rules” or “compliance” and can restrain innovation within an organization, as it typically is mixed with regulatory bodies and governance procedures that add cycles to required tasks. But what if we could flip the script and make governance more of a collaborative effort? What if we used an approach wherein teams across an organization share information and feedback for better business outcomes?

    This collaborative approach can be beneficial in ensuring everyone is on the same page, enabling businesses to get the most out of their cloud infrastructure while ensuring costs stay within budgets.

    Legacy Governance Overshadows Growth and Creativity

    Legacy governance is an extremely paranoid way of running your business. For example, blocking people or departments from making buying decisions is a perceived best practice to avoid overspending on cloud infrastructure. Unfortunately, this is actually the opposite of what organizations with cloud infrastructure should do.

    The advantage of the cloud is that it gives your organization the ability to develop and bring products to market faster—and at a lower price point—than traditional methods. Following legacy governance processes—adding more steps to the process for provisioning resources—results in slower launch times and overprovisioning of resources (since there is a lack of visibility and teams are not sure when they will get more), negating the cost benefits of on-demand cloud infrastructure over traditional data centers.

    Empowered Employees Produce the Best Results

    Think about it: An overbearing manager or boss makes you feel like you’re walking on eggshells when it comes to your work. Sometimes, this is the same effect legacy governance policies can have on employees.

    Removing access barriers and giving team members the freedom to easily request and use resources should be a cloud operator’s ultimate ambition. It’s also cost management that’s collaborative.

    The idea behind a collaborative approach to managing costs is that the individuals who work on the projects themselves–whether that is the engineering team, DevOps teams, etc.–are best suited to manage them and provide the proper infrastructure recommendations because they know what their needs are.

    To receive the full financial and organizational benefits from a collaborative approach, there are three simple steps to take:

    Have a Consistent Source of Truth

    Have a consistent and agreed-upon source of truth for decision-making and self-evaluation against key metrics. This means that everyone in the business—executives, finance, managers and individual contributors—are aligned and looking at the same numbers. When this happens, teams spend less time haggling about ownership and more time looking at how they can improve. When this doesn’t happen, the focus turns to storytelling about why the numbers are wrong, not solving the underlying inefficiency problem.

    Trust the Team

    Trust the members of your organization to leverage this information for the best possible business outcomes.

    Collaborate

    Encourage collaboration inside and between layers of the business to ensure the decisions are made with the complete picture in mind.

    Implicit tradeoffs are made every day at every business level for teams to align their work to organizational priorities. Encouraging collaboration between different layers, viewpoints and skillsets in the business helps to highlight these implicit decisions and make them explicit, intentional and agreed-upon

    Moving away from legacy governance to a more collaborative approach is within reach for any organization. The key is understanding what methods are required for the transition to be a seamless and positive experience that teams will embrace.