![]() Here are some of the metrics we felt were especially important. Not only were we not sure what we were spending the most money on, but we also didn’t have a framework for determining whether we were spending too much money at all.īut we wanted to make cloud optimizations proactively, so we engaged in a cost control discovery period – seeking realtime information that would give us insights into how much we are spending, and where. Defining and measuring cost metrics and KPIs Without cloud financial management, our $3 million annual combined cloud spend was a black box. The ultimate impact of these gaps? It was difficult for us to identify unit costs & drivers of spending. The gaps were clear: we had a lack of process for up-front cost analysis, undefined cost metrics and KPIs, and not a lot of visibility into our cloud spend beyond the bill itself. So before we could do anything about reducing our bill, we knew we needed to institute some careful governance, planning, and budgeting. If your gross margin is staying the same as the cloud bill increases, that might be perfectly fine – literally the cost of doing business! But if margins are decreasing as you grow, or you want to increase the margin, then it’s time to optimize spend. So we hadn’t put a lot of effort into a systematic cloud cost control process.īut when we combined two companies’ worth of cloud spend into one bill, AWS cost optimization became a hot topic around here very quickly! Approaching a black-box cloud billįirst, let’s acknowledge that rising cloud spend, in and of itself, isn’t necessarily a bad thing. At one point, our monthly office catering bill was actually higher than what we spent on AWS. After all, we’re the people who identified as the world’s first serverless startup and liked to show off pictures of our empty production EC2 console. Prior to the acquisition, cloud spend was a proportionally small expense for ACG. In December 2019, A Cloud Guru acquired our largest competitor, Linux Academy - along with a $2.7 million USD annual AWS bill.
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