Cost Reduction

Calculating the Break-even Point: an AWS Example


Instance:  m5.large (2 vCPU, 8 GB Memory), running Amazon Linux Region:  US East (northern Virginia) On-demand (pay-as-you-go):  $0.096/hour Standard 1-year Reserved Instance, all paid upfront:  $501 ($41.75/month) Formula:Calculation: Interpretation: If this instance is expected to run for more than 435 hours each month, consider a 1-year reservation. If this instance is expected to run for less than 435 hours […]

Best Practices for Managing Spend in the Cloud


Depending on which sources you read, you may have expected your cloud program to generate IT cost reductions of 40 percent to 50 percent, and have been disappointed to achieve savings far less than that.[1] Gartner sees organizations reporting saving an average of 16 percent by moving to public cloud, but, generally speaking, higher cost […]