4 min readNov 15, 2021


4 Myths About Cloud Cost Optimization

Author : Rohith Sk

There are lots of misconceptions about the cloud, especially when it comes to costs. Organizations migrating to the cloud with the predetermined notion that cloud expenses will be inherently lower as compared to maintaining on-premise infrastructure. This thought itself drives you to use your cloud services in an uncontrollable manner that ultimately leads your monthly billings to overshoot your estimates. Let us see some of the common misconceptions that are related to cloud cost optimization.

1) Cloud Enables Cost Cutting

Cost optimization and cost-cutting are way different. The strategy of cost optimization involves maximizing your business productivity and efficiency at a reduced cost. Here the quality of your business operations is not compromised to reduce the cost. You are ensuring that your operations are highly efficient and productive and that the associated cost is the least, which cannot be brought down further. Cost-cutting involves bringing down your operating costs while taking a heavy toll on your business operations. This indeed is not the purpose of adopting the cloud!. So if you adopted the cloud to save costs it should not be at the expense of reduced operational productivity and efficiency.

2) Cloud Cost Optimization Is A One-Time Process

You cannot adopt cost optimization strategies one fine morning and expect results the very next day. It is a gradual and time-consuming process, unlike cost reduction which is a one-time process. A long-term and far-sighted strategy needs to be put in place to ensure that cost is optimized, as the process of cost optimization is continuous and ongoing as long as you continue using the cloud. So you need to ensure that you review and evaluate this strategy from time to time, say monthly or bimonthly.

3) Cost Optimization Is Associated With Only Specific Departments

In an organization, all the teams are equal players as far as optimizing costs are concerned. The finance and accounting team may have the most expertise on matters related to finance like capital gains, investment returns, cost optimization, etc. The development team, under which the core operations fall, decides the ultimate fate of the cost optimization strategy and its success or failure. But none of the individual departments is solely responsible for cost optimization. It’s a shared and collective responsibility of all the departments and the organization as a whole.

4) Cost Can Be Optimized By Using The Best Technologies And Tools

This is the most common misconception that budding companies and startups that are at their early stages of infancy have. There is no magical tool that can at the same time enhance your efficiency and productivity while at the same time optimizing your costs. Investing in multiple tools and technologies based on Artificial Intelligence (AI), Machine Learning, Big data, etc also may not serve you the purpose, unless and until you have the appropriate human resources with the proper skills. Merely relying on skilled human talent without investing in tools and technologies also won’t do the purpose as many processes are manual and repetitive. This can not only delay your development process but badly hampers the productivity and efficiency of operations and human resources alike. So you must have the right combination of tools, technologies, and human resources to have a successful approach to cost optimization.

Final Thoughts

The dynamic nature of the cloud is what makes cloud cost optimization not a one-time process. It is a continuous and ongoing process and cannot be adopted and executed overnight. Having a well-planned strategy for cloud usage and optimization does ensure that your billings are well under control.

If you are thinking about cloud services but the cost is the retarding factor, we at Activelobby are here to help you out. We provide cloud-managed and migration services. Our team creates a cloud roadmap for your cloud adoption and migration. We significantly lower your cloud spend by closely analyzing the service consumption using integrated tools thus monitoring the usage of services.

Our scalable applications ensure that you need to pay only for what you use thereby saving your costs. We proactively monitor your services deployed in your public or private cloud using cutting-edge tools. We enable you to move your workloads to any cloud platform after assessing your business continuity and disaster recovery processes. Our migration services assure you 30 % cost reduction with 100 % security and compliance. We do ensure that cost does not come as a bottleneck in your transit to the cloud.

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