Cloud cost monitoring is the process of tracking, analyzing, and optimizing your organization's cloud spending. By providing an immediate view of your cloud spending, it helps regulate costs effectively, avert surpassing budget limits, and maximize resource utilization.
When organizations use cloud services, they often deal with multiple teams working on different projects across various environments. This setup can make it really tricky to keep track of how much is being spent and on what. As a result, cloud costs can start to creep up without clear oversight.
The saying "you can't manage what you can't measure" is especially true for cloud costs.
With cloud cost monitoring, companies get a detailed look at their cloud usage, allowing them to spot where they might be spending too much.
This visibility is the first step towards cloud cost optimization; basically making smarter choices about how to use cloud resources in a way that saves money without cutting back on what the business needs to succeed.
Cloud Cost Monitoring is a crucial strategy for businesses looking to optimize their investment in cloud infrastructure across platforms like AWS, GCP, and Azure.
Cloud monitoring functions via a combination of automated tools and manual checks. These tools and checks are designed to continuously oversee the operation of servers, networks, databases, and applications within a cloud environment.
Cloud Monitoring Tools record aspects such as cost spikes, underutilized resources, zombie instances, resource consumption, and availability, sending out alerts when irregularities or deviations from set thresholds are identified.
Effective Cloud Cost Monitoring encompasses several key operational processes:
Data Collection from Logs
The process begins with comprehensive data collection, where usage and cost data are gathered from all cloud services. This step is fundamental as it ensures that every dollar spent is accounted for and analyzed.
Cloud Billing and Log Analytics
The collected data undergoes a rigorous analytical process, which helps identify patterns, trends, and anomalies. This stage is critical for recognizing opportunities to cut costs or reallocate resources more effectively.
Measures for Optimization
Following analysis, targeted actions are taken to optimize spending. This might include scaling down or scaling up resources, purchasing reserved instances, or renegotiating service contracts based on usage data.
Cloud monitoring offers a myriad of benefits to organizations, particularly those that heavily rely on cloud-based operations. Here are some key advantages:
Tired of cloud costs that are sky-high? Economize to the rescue!
On average, users save 30% on their cloud bills and enjoy a reduction in engineering efforts. It's like finding money in your couch cushions, but better!
Effective cloud monitoring requires strategic planning and execution. It’s not just about choosing the right cost management software, but also about how you use them. Here are six best practices to guide your journey:
The first essential step towards an effective cloud monitoring strategy is setting clear and measurable goals. Without a defined objective, your monitoring efforts can become unfocused and inefficient. The goals you set should align with your broader business objectives. Are you aiming to reduce costs, improve application performance, or enhance security? Each of these objectives will require monitoring different aspects of your cloud environment and using different tools.
For instance, if cost reduction is your primary aim, you might focus on monitoring resource usage and eliminating waste. You would then need to identify key metrics that reflect these areas, such as CPU usage, disk read/write operations, or network bandwidth usage.
Specific examples of cloud monitoring goals might include:
Remember, the goals should be Specific, Measurable, Achievable, Relevant, and Time-bound (SMART). This framework ensures your goals are clear and reachable.
Setting baselines is a crucial step in efficient cloud monitoring. They act as your reference point for typical cloud performance. Baselines represent the average performance of your cloud services, such as CPU utilization, data usage, and network traffic.
Establishing baselines might seem daunting, but it is an essential aspect of cloud monitoring. By setting these benchmarks, you can identify potential issues before they escalate and maintain optimal cloud performance.
Starting with FinOps benchmarking is a great way to establish your initial baselines. FinOps provides a set of best practices aimed at managing and optimizing cloud costs. Its benchmarking process offers a clear picture of your current cloud expenditure, laying an excellent foundation for your baselines.
FinOps is a relatively new paradigm, but it is quickly becoming a cornerstone of effective cloud cost management. Essentially, FinOps is the practice of bringing financial accountability to the variable spend model of cloud, enabling teams to make informed business decisions.
Implementing FinOps strategies can provide numerous benefits for your cloud monitoring practices:
If you’re new to FinOps, getting started can seem daunting. Here are a few actionable steps to help you begin:
The FinOps Foundation offers a wealth of resources to help you learn more about this approach and how to implement it effectively. Implementing FinOps strategies in your organization can lead to more efficient cloud usage, better cost control, and ultimately, a more effective cloud monitoring strategy.
Key Performance Indicators, or KPIs, are quantifiable measurements used to evaluate the success of an organization, employee, etc., in meeting objectives for performance. When it comes to cloud monitoring, identifying and focusing on the right KPIs is critical.
KPIs act as a bridge between your cloud monitoring goals and the data you collect. They provide insights into how well your cloud resources are meeting the objectives you’ve set. By identifying and tracking the right KPIs, you can effectively measure performance, identify trends, make data-driven decisions, and achieve your cloud monitoring goals.
Tracking FinOps KPIs can help you optimize cloud costs, improve resource efficiency, and align your cloud strategy with your business objectives.
While the specific KPIs to track will depend on your business objectives, here are some KPIs commonly tracked in cloud monitoring and FinOps:
Remember, the key to effective KPI tracking is not just collecting the data but also analyzing it and using the insights to inform your decisions.
Logs may be used to track every user action, system fault, application transaction, and network packet movement in today’s digital world. This degree of insight into systems, networks, and applications is beneficial for resolving bottlenecks, reviewing historical trends, and forecasting future occurrences. When an application or infrastructure piece has a performance problem, it generates logs that can snowball in a matter of minutes.
When logs are left unchecked while moving to the public cloud, they can gradually increase expenditure over time. When using public cloud services, the total cost is generally calculated by combining different service aspects such as storage and data transit.
Google’s Cloud Logging feature enables you to maintain observability by having express, non-tampering logs that describe all the activity within your Google Cloud environment. Having the ability to store, interact, view and analyze the logs helps you in gaining valuable insights and supplements you in making better decisions.
With the Free Tier’s 50 GiB per project, Google’s Cloud Logging charges $0.5/GiB of ingested logs. While it normally only amounts to a smaller fee, there are times when these expenditures might surge. Although Google has been lenient in such circumstances and has issued reimbursements on occasion, it is critical to have basic control over such operating expenditures in order to prevent inefficiency.
AWS CloudTrail is a comprehensive logging and monitoring service provided by Amazon Web Services. It facilitates governance, compliance auditing, risk management, and operational troubleshooting by providing a detailed history of events occurring within an AWS account.
From API calls to resource modifications, CloudTrail captures a comprehensive trail of activities, enabling organizations to gain insights into user actions, resource changes, and system behavior.
In order to ensure that your cloud costs remain within your desired budget, it is important to monitor your costs on a regular basis.
The answer to this question depends on a number of factors, including the size of your business and the level of variation in your cloud usage.
However, a good rule of thumb is to check in on your cloud costs at least once a week. This will help you to spot any unexpected spikes in cost and take action to ensure that your costs remain within your budget.
By monitoring your cloud cost on a regular basis, you can make sure that your business stays on budget and does not overspend on cloud services.
Tired of cloud costs that are sky-high? Economize to the rescue!
On average, users save 30% on their cloud bills and enjoy a reduction in engineering efforts. It's like finding money in your couch cushions, but better!
A crucial step in setting up an effective cloud monitoring strategy is selecting the right tools.
Having the right monitoring tools can make the difference between simply collecting data and gaining actionable insights that you can use to improve your cloud operations.
Various cloud platforms extend an array of native monitoring tools that provide deep insights into your cloud resources’ performance and health.
These native tools are designed to help you monitor every aspect of your Azure expenditure and create strategies for long term cost optimization.
While these native tools offer robust capabilities, they primarily focus on their respective ecosystems and may not provide a holistic view in a multi-cloud environment.
As such, it might be prudent to complement these native tools with a third-party solution that provides a more comprehensive view of your cloud environment.
Economize offers dynamic solutions to control your cloud costs. Our platform can provide you with customized alerts and reports to address your organizational needs. Moreover, it has a free tier that helps you to explore the experience before making a long-term commitment.
Without proactive monitoring, your cloud costs can quickly spiral out of control. Economize makes your cloud monitoring less chaotic by implementing the right FinOps strategies. Join Economize today to gain actionable insights and better visibility to optimize your cloud spending.
Since GCP offers a large number of services, pricing models, and discount options, we have compiled a few resources to help you learn more about the cost optimization journey. Stay informed, and choose the best tools and services to help you manage your cloud.
Pricing Catalog
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Pricing Calculator
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Blog
Learn about cost optimization, and the latest developments in the world of cloud.
Guides
Get an overview of the most used GCP services, their features, pricing, & helpful ways to reduce costs.
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