Managing Cloud Costs for SMEs

Often, small businesses embrace the cloud because it promises cheaper access to computing power that would normally be beyond their in-house resources. However, the price of cloud solutions can ramp up incredibly quickly. We've put together some practice tips to help small businesses manage their cloud costs in Microsoft Azure.

Understand Your Usage

The first step in managing cloud costs is understanding your current usage. Azure provides detailed billing and usage reports that can help you identify where your money is going. Regularly review your Azure billing reports to understand which services are consuming the most resources. Identify patterns in your usage to determine peaks and troughs that you can manage more effectively, and then leverage Azure's built-in tools to gain insights into your spending and forecast your future costs. By keeping a close eye on your usage, you can identify areas where you might be overspending and make necessary adjustments.

Allocate Resources

Secondly, you should have a look at how your resources are allocated and start the process of allocating them more effectively. Quite often, small businesses end up paying for more resources than they end up using.

Adjust the size of your virtual machines and storage to match your actual needs. Avoid over-provisioning where you can. For predictable workloads, consider purchasing reserved instances, which can offer significant savings compared to pay-as-you-go pricing. Ensure that resources not in use, such as virtual machines running outside of business hours, are turned off to avoid unnecessary costs.

Leverage Cost-Saving Features

Microsoft Azure offers various features and tools designed to help you save on costs.

One of these is Hybrid Benefit. If you have existing Windows Server or SQL Server licenses, you can save up to 40% on your Azure usage.

Next, use Spot VMs for workloads that can tolerate interruptions. They offer up to 90% savings compared to standard VMs.

And finally, implement auto-scaling to automatically adjust resources based on demand, ensuring you’re not overpaying during low-usage periods.

Implement Effective Governance

Having a governance strategy in place ensures that your cloud environment is well-managed and that spending is controlled. Set budgets for your cloud spending and configure alerts to notify you when you’re approaching your limits. Use Azure Policy to enforce governance rules and ensure compliance with your cost management strategy. You can tag your resources to organise and track spending by project, department, or environment, making it easier to identify cost-saving opportunities. Effective governance helps maintain control over your cloud spending and prevents unexpected costs.

Use File Sharing Solutions

Efficient file sharing is crucial for collaboration, but it can also impact your cloud costs. Choosing the right solutions can help you manage these expenses.

If you're using a DropBox or Google solution, switch to using Azure File Storage for scalable and secure file sharing. It offers features like snapshot-based backups and multi-region replication. You also have access to OneDrive for Business as part of your Microsoft 365 subscription for cost-effective file sharing and storage.

Within Azure, you can choose the appropriate storage tiers for your data based on access frequency and performance requirements.

Selecting the right file sharing solutions can streamline collaboration and reduce costs.

Plan for Data Backup & Recovery

Cloud backups are an essential cost if you're using cloud solutions, so it's important to spend effectively here.

Use Azure Backup for scalable and reliable backup solutions. It offers automated backup and recovery services, ensuring your data is protected. Adjust your backup schedules to avoid unnecessary data retention and reduce storage costs. Consider different storage options, such as cold storage, for infrequently accessed data to save on costs.

Managing cloud costs in Microsoft Azure requires a strategic approach that combines monitoring, optimisation, and effective governance. By understanding your usage, optimising resource allocation, leveraging cost-saving features, and implementing efficient file sharing and backup solutions, small businesses can keep their cloud expenses under control. Azure offers a robust set of tools and features that, when used effectively, can help you maximise value and ensure your cloud investment is cost-efficient.