Cost Optimization

The cost optimization feature has the ability to run systems to deliver business value at the lowest price point.

Cost optimization allows you to:

  • Implement Cloud Financial Management: Build capability through knowledge building, programs, resources, and processes to become a cost-efficient organization.

  • Adopt a consumption model: Pay only for the computing resources that you require and increase or decrease usage depending on business requirements.

  • Measure overall efficiency: Measure the business output of the workload and the costs associated with delivering it.

  • Stop spending money on undifferentiated heavy lifting: AWS does the heavy lifting of data center operations like racking, stacking, and powering servers. It also removes the operational burden of managing operating systems and applications with managed services.

  • Analyze and attribute expenditure: Identify the usage and cost of systems. Measure return on investment (ROI) and allow workload owners to optimize their resources and reduce costs.

Optimize Usage

It runs Corestack cost optimization policies.

  1. Click Cost Optimizer > Optimize Usage.

The Optimize Usage window appears.
The Cost Optimizer dashboard is divided into five parts:

  • Right Sizing
  • Optimize Configuration
  • Schedule Recommendations
  • Manage Idle
  • Manage Orphaned

Right Sizing

With a massive combination of instances offered by cloud platforms like AWS, Google Platform, and Microsoft Azure, it becomes overwhelming to choose from among the Cloud Titans. Rightsizing in this case not only helps deflate the cost but in turn leads to optimization which yields better operational results.

Using rightsizing tools is recommended as they are customized to analyze your cloud system and enable recommendations on applicable areas. They analyze patterns, instance performances and also, are enabled to switch off idle instances that are not a perfect match to their specific workload overheads.

Right Sizing has policies to find underutilized issues in customer infrastructure called violations.

  1. Click Right Sizing. The Impacted Resources and Recommendations appear.

For example, as shown below, the customer CPU utilization is shown by analyzing the last 30 days of cloud account data. The feature will recommend to move to lower configuration machine and will save cost. Here the Azure cloud account has three Impacted Resources, which is underutilized for this cloud account and one Recommendation. Once our recommendation is applied, $112.97 is saved.

  1. Under Action, click view icon. The resource utilization, saving recommendations and action to be take appear. You can chose any recommendation.
Resource IdThe identifier number that Project assigns to each resource
Resource TypeVirtual machines (VM)
Potential Savings (Monthly)Measure monthly cloud savings
RegionThe cloud physical location
Current Resource SKUThe current cloud instance unique code
Recommended Resource SKUThe recommended cloud instance unique code
Impact LevelThe sensitivity of the information to be stored
Optimization TypeOptimal configuration action
  1. Click Utilization Metrics, the CPU utilization appears.

  2. Select Statistic type.

  3. Select Time Period type.

The Green is Recommended Utilization and Blue is current CPU Utilization. Utilization goes up after applying recommendations and the cost is saved.

  1. Click Saving Details. The Recommended Resource SKU cost is lower than the Current Resource SKU cost.
  1. Click Resource Details. The SKU details appear. There are four VCPU in the Current Resource SKU, and two in the Recommended Resource SKU. The SKU is reduced.
  1. Select a recommendation and Click Actions.
  1. Click Remediate Now.
  1. Enter Email Address and write Message. You will get a confirmation message once this recommendation is successfully executed

Once the action is implemented, it moves current resource to recommended resource.

  1. Click Schedule, to schedule the recommendation.

Enter the details, the notification is sent to the receiver.

  1. Click Submit for Approval. It sends the notification email to move the machine.
  1. Click Reject, to reject the recommendation.
  1. Click Compare. The recommendations comparison appear.

You can make decisions by comparing the recommendations.

Optimize Configuration

The optimize configuration includes custom rules which execute and save the cost.

  1. Click Optimize Configuration. The rules execute and the cost is calculated. The policies are run and the recommendations appear. For example, as shown below, there are two Recommendations and three Impacted Resources.
  1. Click Action, the cloud account details appear.

In the below example, the two recommendations are:

  • For Resource Type RDS, the cost saving is $73.54 and Optimization Type is Config. It takes action based on rules and save cost.
  • For Resource Type Lambda, the cost saving is $26.43 and Optimization Type is Config.

Manage Idle

These resources can be Idle or Orphaned.

  1. Click Manage Idle. This includes resources that are idle and not used.

In the below example, this account has one Recommendation and one Impacted Resource.

If this account is not used then it can be deleted.

There are no other recommendations in idle case.

  1. Click Actions.
  2. Click Remediate Now, the resource will be removed. The cost saving is A$6.72

Utilization Metrics are not provided.

  1. Click Saving Details, the Current Resource SKU appears.

Manage Orphaned

  1. Click Manage Orphaned. It runs policies and find the orphaned resources. For example, an IP address onboarded and not attached to any resource is orphaned resource. It can be deleted and
    hence optimize the cost.

In the below example, there is one recommendation and two impacted resources.

  1. Click Optimize Rate
  1. Click Long Term Savings. The reservations appear. The long term savings are contract with cloud providers AWS, Azure, and GCP. For instance, a three or four years contract will save the cost.

The configuration plan and potential savings appear.

  1. Click License Benefits. The Azure data appears. The licensing benefits that helps you to significantly reduce the costs of running your workloads in the cloud appear.

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