--- title: Cost Optimization Tips for Cloud Computing description: Whether your cloud strategy is short-term or long-term, knowing these best practices will help you cut unnecessary costs. image: https://blog.avenuecode.com/hubfs/image%20(13).png --- [AvenueCode.com](https://avenuecode.com) [News](https://avenuecode.com/news) [Contact](https://avenuecode.com/contact) [![Avenue Code Snippets Logo](https://blog.avenuecode.com/hubfs/Avenue%20Code%20New%20Logos%20-%202023/AC-Snippets---Black.png)](https://blog.avenuecode.com/?hsLang=en-us) *menu* - Technology [Cloud](https://blog.avenuecode.com/blog/topic/cloud?hsLang=en-us) [Delivery Infrastructure](https://blog.avenuecode.com/blog/topic/delivery-infrastructure?hsLang=en-us) [Web Experience](https://blog.avenuecode.com/blog/topic/web-experience?hsLang=en-us) [Agile Mindset](https://blog.avenuecode.com/blog/topic/agile-mindset?hsLang=en-us) [Quality First](https://blog.avenuecode.com/blog/topic/quality-first?hsLang=en-us) [Design](https://blog.avenuecode.com/blog/topic/design?hsLang=en-us) [Solution Architecture](https://blog.avenuecode.com/blog/topic/solution-architecture?hsLang=en-us) [Data & ML](https://blog.avenuecode.com/blog/topic/data-and-machine-learning?hsLang=en-us) [Mobile Experience](https://blog.avenuecode.com/blog/topic/mobile-experience?hsLang=en-us) - [Whitepapers](https://blog.avenuecode.com/blog/topic/whitepapers?hsLang=en-us) - [Spotlight](https://blog.avenuecode.com/blog/topic/spotlight?hsLang=en-us) - [Extraordinary Women in Tech](https://blog.avenuecode.com/blog/topic/extraordinary-women-in-tech?hsLang=en-us) - [Avenue Code Culture](https://blog.avenuecode.com/blog/topic/avenue-code-culture?hsLang=en-us) - [Cloud](https://blog.avenuecode.com/blog/topic/cloud?hsLang=en-us) - [Design](https://blog.avenuecode.com/blog/topic/design?hsLang=en-us) - [Delivery Infrastructure](https://blog.avenuecode.com/blog/topic/delivery-infrastructure?hsLang=en-us) - [Solution Architecture](https://blog.avenuecode.com/blog/topic/solution-architecture?hsLang=en-us) - [Web Experience](https://blog.avenuecode.com/blog/topic/web-experience?hsLang=en-us) - [Data & ML](https://blog.avenuecode.com/blog/topic/data-and-machine-learning?hsLang=en-us) - [Agile Mindset](https://blog.avenuecode.com/blog/topic/agile-mindset?hsLang=en-us) - [Mobile Experience](https://blog.avenuecode.com/blog/topic/mobile-experience?hsLang=en-us) - [Quality First](https://blog.avenuecode.com/blog/topic/quality-first?hsLang=en-us) - [Whitepapers](https://blog.avenuecode.com/blog/topic/whitepapers?hsLang=en-us) - [Spotlight](https://blog.avenuecode.com/blog/topic/spotlight?hsLang=en-us) - [Extraordinary Women in Tech](https://blog.avenuecode.com/blog/topic/extraordinary-women-in-tech?hsLang=en-us) - [Avenue Code Culture](https://blog.avenuecode.com/blog/topic/avenue-code-culture?hsLang=en-us) # [Cost Optimization Tips for Cloud Computing](https://blog.avenuecode.com/cost-optimization-tips-for-cloud-computing) - [Tweet](https://twitter.com/share) *perm\_identity* [Douglas Augusto](https://blog.avenuecode.com/cost-optimization-tips-for-cloud-computing/author/douglas-augusto?hsLang=en-us) *schedule* 11/18/20 2:00 PM Enterprise organizations around the world have been forced to transform themselves digitally to maintain business operations. Resilient infrastructure is key to scaling and keeping operations running, but how can your business grow sustainably without getting lost in IT spending? ##### What's the Problem? When we talk about costs beyond the basics expected for infrastructure, most companies face these common problems: **Poor Application Architecture Design** Technical decisions are made without conducting a study to identify the best solution. **Improper Provisioning** Resource oversizing is a very common practice, often due to the lack of visibility of system needs. **Lack of Visibility** Without a tagging system and monitoring, it's difficult to find cost reduction possibilities. ##### The Growth of FinOps FinOps is a model for operating cloud resources that uses systems, best practices, and culture to give an organization the ability to understand IT costs in the cloud and make business decisions regarding investments. The term has gained popularity and interest not only in technology, but also in business and finance. In every field, the focus is the same: Cloud Financial Management. There are several principles of FinOps. The established performance phases consist of: 1. Inform (Visibility & Allocation), 2. Optimize (Utilization) and 3. Operate (Continuous Improvement & Operations). When we talk about cost reduction, there are always two factors - regardless of the methodology - that directly play into the strategy and prioritization of activities. They are **Potential for Cost Reduction** and **Effort of Action**. ##### Short Term: Pay as You Need For the pay-as-you-need model, it's smart to focus on using only the infrastructure you need, limit who can create resources, remove waste, and optimize wherever you can. There are several activities that you can perform to reduce costs in the short term, and these do not require drastic changes in your environment or application level. Some of these activities are listed below:   | Activity | Potential | Effort | | --- | --- | --- | | Enforce controls | Low | Low | | Identify idle resources | High | Low | | Right-size resources | High | High | | Commitment plans | High | Low | | Lifecycle policies | Low | Low | | Schedule resources | High | High | | Leverage lower price resources | Mid | Mid | | Exclude unused logs | Low | Low | ##### Long Term: Rehost, Refactor, Replatform Sometimes it takes much more than governance and resource optimization to reduce costs; modernization is necessary, and changes that directly affect the application are more difficult to implement, but some of them have a much greater potential for cost reduction. Below are some of these possibilities:   | Activity | Potential | Effort | | --- | --- | --- | | Redo feature selections | High | High | | Opt for cloud-native solutions | Mid | Mid | | Embrace serverless | High | Mid | | Multi-tenancy whenever possible | Mid | Mid | | Improve your CI/CD | Mid | Low | | Avoid licensing | High | High | | Partition and cluster data | Low | Low | | Create a robust cache policy | Low | Low | ##### Start Small, but Never Stop Costs with cloud resources will always be a topic to be dealt with in the fields of technology, business, and finance, so regardless of your role in the organization, turn cloud cost optimization practices into culture, always keep useful dashboards at your disposal, and make recurring analyses of your environment.   --- ### Author # Douglas Augusto Douglas Augusto is a Lead Solutions Architect at Avenue Code and is passionate about Cloud Computing. He is a Google Developer Expert (GDE) for Google Cloud Platform and a Mentor in Cloud Computing at Google for Startups. --- ### Related Posts ### New Horizons for Solution Architects [READ MORE](https://blog.avenuecode.com/new-horizons-for-solution-architects?hsLang=en-us) ### The Domains of the Cloud Center of Excellence (CCoE) [READ MORE](https://blog.avenuecode.com/the-domains-of-the-cloud-center?hsLang=en-us) ### Asymmetric Cryptography [READ MORE](https://blog.avenuecode.com/asymmetric-cryptography?hsLang=en-us) ### Terraform 101: An Introduction to Infrastructure as Code [READ MORE](https://blog.avenuecode.com/terraform-101?hsLang=en-us) ### Leave a Comment! ### Avenue Code Social [![Facebook Icon](https://blog.avenuecode.com/hubfs/Images/Blog/facebook.png?t=1486470796564)](https://www.facebook.com/avenuecode) [![Twitter Icon](https://blog.avenuecode.com/hubfs/Images/Blog/twitter.png?t=1486470796842)](https://twitter.com/AvenueCode) [![LinkedIn Icon](https://blog.avenuecode.com/hubfs/Images/Blog/linkedin.png?t=1486470796556)](https://www.linkedin.com/company/avenuecode/) ### Newsletter Want to stay on top of all tips and news from Avenue Code? ### Popular Snippets ![Avenue Code-primary versions_logo white avenue code endorsement 2](https://blog.avenuecode.com/hs-fs/hubfs/Avenue%20Code%20New%20Logos%20-%202023/Avenue%20Code-primary%20versions_logo%20white%20avenue%20code%20endorsement%202.png?width=1180&name=Avenue%20Code-primary%20versions_logo%20white%20avenue%20code%20endorsement%202.png "Avenue Code-primary versions_logo white avenue code endorsement 2") ### About Us - [Who We Are](https://www.avenuecode.com/who-we-are) - [What We Do](https://www.avenuecode.com/what-we-do) - [Portfolio](https://www.avenuecode.com/portfolio) - [Partners](https://www.avenuecode.com/partners) - [News](https://www.avenuecode.com/news) - [Events](https://www.avenuecode.com/events) - [Blog](https://blog.avenuecode.com/) - [Contact](https://www.avenuecode.com/contact) ### Our Offices San Francisco [+1 415 766 4178](tel:+553125161448) [ac.inquiries@avenuecode.com](mailto:brazil.info@avenuecode.com) Belo Horizonte [+55 31 2516 1448](tel:+553125161448) [brazil.info@avenuecode.com](mailto:brazil.info@avenuecode.com) São Paulo [+55 11 3205 3232](tel:+553125161448) [brazil.info@avenuecode.com](mailto:brazil.info@avenuecode.com) ### We're Hiring! - [Belo Horizonte](https://www.avenuecode.com/who-we-are) - [New York](https://www.avenuecode.com/what-we-do) - [San Francisco](https://www.avenuecode.com/portfolio) - [São Paulo](https://www.avenuecode.com/partners) --- ©2015 - 2017 Avenue Code [![Facebook Icon](https://blog.avenuecode.com/hubfs/Images/Icons/facebook-2.png)](https://www.facebook.com/avenuecode) [![Twitter Icon](https://blog.avenuecode.com/hubfs/Images/Icons/twitter-2.png)](https://twitter.com/AvenueCode) [![LinkedIn Icon](https://blog.avenuecode.com/hubfs/Images/Icons/linkedin-2.png)](https://www.linkedin.com/company/avenue-code) [![Glassdoor Icon](https://blog.avenuecode.com/hubfs/Images/Icons/glassdoor-icon-1.png)](https://www.glassdoor.com/Overview/Working-at-Avenue-Code-EI_IE456173.11,22.htm) [![YouTube Icon](https://blog.avenuecode.com/hubfs/Images/Icons/youtube-2.png)](https://www.youtube.com/user/AvenueCodePlay) Please enable JavaScript to view the [comments powered by Disqus.](http://disqus.com/?ref_noscript) © 2026 Avenue Code ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Douglas Augusto", "url" : "https://blog.avenuecode.com/author/douglas-augusto" }, "dateModified" : "2020-11-18T17:00:00.364Z", "datePublished" : "2020-11-18T17:00:00.000Z", "headline" : "Cost Optimization Tips for Cloud Computing", "image" : [ "https://blog.avenuecode.com/hubfs/image%20(13).png" ], "mainEntityOfPage" : { "@id" : "https://blog.avenuecode.com/cost-optimization-tips-for-cloud-computing", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.avenuecode.com/hubfs/Avenue%20Code%20New%20Logos%20-%202023/Avenue%20Code-primary%20versions_LOGO%20HORIZONTAL%20group%201-7.png" }, "name" : "Avenue Code" } } ```