Cloud IT Financial Management: Detecting and Mitigating Hidden Costs

September 10 2015 | by Yoav Mor

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Users’ cost expectations and reality, as reflected in the monthly bill. This mismatch can be caused by overlooked charges, by idle or wasted resources or by unplanned usage of resources. Let’s take the following examples:

  1. Two virtual instances running a database are set up in master/slave configuration. Wrong configuration parameters can lead to massive data transfer between the instances, and with data transfer costs going as high as $0.25-$0.18 per GB on AWS and Azure, this can mean tens of percent added to the instances’ price.
  2. A production server is upgraded to a newer generation instance. The reserved instance purchased for the older server is still valid, and is still incurring monthly charges, though unutilized. The new server is charged on-demand, so now you’re essentially paying twice for the same service.
  3. Storing archived data on AWS Glacier service incurs about a third of the cost of storing it in standard S3. Data retrieval is seemingly free, but only if you retrieve 5% of your data per month (calculated on a daily basis, i.e. 0.16% of your data per day). If, for any reason you need to retrieve more than 0.16% of your data on a given day, retrieval rates start to apply, with charges ranging up to hundreds of dollars.

Join us for an insightful webinar, in which we will review common hidden, overlooked and wasted costs in the cloud, and explore methods and tools for mitigating the effect of these costs and reducing your cloud bill shock.


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