What is Cloud Rightsizing and How Does it Help You Save Money?

Updated: Aug 26, 2019

Global cloud spending is expected to hit $206.2 billion this year according to a study by Gartner, showing the growing importance of the cloud for businesses today.

However, companies are still not using the technology efficiently—especially cost-wise. About $14.1 billion is lost every year from misspending on cloud resources, meaning that close to 7% of global cloud spend brings zero benefits to organizations.

In an era where cost-savings and efficiency in operations are more crucial than ever, companies can no longer afford to spend recklessly on cloud solutions.

Thankfully, there are ways for companies to mitigate this concern, with one of the solutions being rightsizing.

What is rightsizing?

Rightsizing aims to find the best configuration of your cloud infrastructure to meet your organization’s current and future workload needs. It is done to find an ideal balance between performance and cost to cut down on waste as much as possible.

This is made possible by cloud resources being flexible; they’re elastic, easily scalable, and can be deployed on-demand.

Aside from adjusting cloud resources, rightsizing also includes other best practices like:

  • Using the optimal computing power

  • Using the right network settings (load balancing, etc.)

  • Choosing a pricing structure that allows your cloud infrastructure to perform effectively while keeping costs low

Rightsizing is usually carried out in 3 steps:

  • Analyzing the usage and performance metrics of your organization’s volumes, virtual machines, and instances.

  • Checking whether they meet the recommended performance benchmark. Are they maximizing performance constantly or are there unused resources?

  • Upgrading, downgrading, or terminating cloud resources based on the results of the performance analysis.

Why is rightsizing important for your organization’s cloud infrastructure?

When companies migrate from physical servers to the cloud, they’re often puzzled by the costs which end up roughly the same as their on-site infrastructure. In some cases, the cost of deploying cloud solutions is more expensive than not migrating at all.

Why does this happen?

A common mistake among organizations is to overprovision cloud resources. This is a result of companies wrongly assuming that their on-site infrastructure is correctly distributed when more than 80% of on-premise workloads are overprovisioned.

By replicating their already inefficient infrastructure on the cloud, companies are simply moving their problems from one technology to another, leading to revenue loss from underutilized and unused resources.

In some instances, organizations also fall victim to the “safe” approach of deploying more resources than necessary to avoid bottlenecking.

Rightsizing overcomes these problems by giving companies a structured, logical approach in understanding their cloud computing needs and downscaling or upscaling their infrastructure to meet those needs.

This saves a lot of money while providing optimal cloud performance without the risk of the resources being over or underutilized.

What are the benefits of rightsizing?

Significant cost savings

Reducing wasted expenditure is the biggest advantage of rightsizing. Organizations can reduce their cloud bills by up to 40% just by rightsizing correctly. This is without factoring in the additional savings from the improved performance of the advanced AWS cloud platform, which is miles better than standard on-site servers.

For instance, if your organization uses multiple r3.2xlarge workloads in AWS, you can use rightsizing to find out if they are really needed in your cloud infrastructure. If it is unnecessary, the workload can be downgraded (e.g. using r3.xlarge instances) instead to save more money.

Better use of the cloud for your organization’s goals

Often times, companies follow vendor recommendations without understanding why the cloud resources and applications are used in the first place.

This is worsened by the fact that many cloud management tools only provide surface-level information about usage levels, leading to underutilized and “zombie” servers—cloud computers that rack up the bills even though they’re not in use.

With rightsizing, your organization gets a clear view of the type of cloud resources to be used in its infrastructure. Rather than blindly adhering to vendors, your organization can choose the right type of workloads and volumes to meet its needs.

Migrating to the cloud becomes much more organized and cheaper

Migrating to the cloud is costly for many companies as they simply shift their inefficient workloads without analyzing their on-site infrastructure beforehand.

Rightsizing solves this problem by helping organizations understand their cloud infrastructure requirements, allowing them to remove excess storage and computing which significantly reduces migration costs.

Costs of migrating to the cloud in different scenarios (image source)

Use a cloud visualization tool to make rightsizing easier

While rightsizing is important, it is not simple to understand and visualize which resources to scale or discard. It requires a solid understanding of AWS and the cloud, in general, to perform correctly.

With a cloud visualization tool, rightsizing is made significantly easier by allowing organizations to have a clear, intuitive view of every AWS asset; from viewing performance and usage metrics to knowing how much each asset costs and for how long.

Cloudivize helps reduce cloud waste and unnecessary spending in cloud solutions by enabling organizations to track their AWS assets visually and make changes in the same view.

Cloudivize provides a clear, intuitive view of your cloud usage by visualizing relationships between different AWS assets to identify the usage and performance metric of each asset, making rightsizing much easier for your business.

Request a demo today to find out how Cloudivize visualizes your AWS assets to reduce cloud spend by making rightsizing easier through our interactive graphical management platform.

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