AI Creator's Path News: For those of you concerned about cloud costs! By taking measures, you can significantly reduce costs! Get a cloud strategy to dominate the AI era now! #CloudCosts #FinOps #AI
Video explanation
Introduction: Cloud computing is convenient, but you might be surprised when you see the bill!
Hello everyone! Welcome to my blog, where I explain AI technology in an easy-to-understand way for beginners. I'm John.
You may have heard the term "cloud computing" a lot recently. It is a very convenient service that allows you to store data and perform complex calculations over the internet. For companies, it is a dream come true, as it allows them to use the latest technology without having to own large computer facilities. However, something a bit of a problem has been happening recently. That is,Cloud services are becoming increasingly expensiveMore and more companies are scratching their heads, saying, "It's convenient, but it's so expensive!?"
You may be wondering, "Why does this happen?" In fact, it is often the case that costs do not fall as much as expected, or cloud functions are not used effectively. Many companies lack the knowledge and preparation to use cloud resources optimally. As a result, the many apps and data they move to the cloud eat up more resources than necessary, wasting money.
Of course, there is the issue of pricing on the part of the service provider, but it seems that users also need to look back and ask themselves, "Did I manage it properly?" Especially now is the age of AI (artificial intelligence, a technology that allows computers to think and learn like humans). If we can't use the cloud wisely, things may become even more difficult.
Why are cloud costs so high? Check out the main reasons!
There are a few reasons why cloud is expensive. Let's go through them one by one.
- Cloud providers' price hikes and complex pricing structures: This may be the simplest reason. Major cloud service providers are gradually raising their prices. Of course, competition keeps prices down to a certain extent, but prices tend to rise when they are affected by rising prices or when new, highly functional services are added. Moreover, the pricing plans are very complicated, and it is often difficult to understand how much it will cost in the end. This makes cost management difficult.
- Inefficient use by users: Pitfalls of "lift and shift": Many companies tend to use the "lift and shift" method. This involves transferring the system that was previously used in-house to a new company.Bring it to the cloud as isIt's a quick solution, but it's not optimized for the cloud environment, so it often wastes resources and incurs extra costs. A recent survey reported that only 13% of the CPU (computer brain) and 20% of the memory (working space) used in Kubernetes, a type of container management system, are actually being used! That's surprising, isn't it?
- Multicloud traps: "Multi-cloud" is a strategy of combining and using cloud services from multiple companies. The aim is to avoid relying too much on a specific company, but this also makes management complicated, which can lead to increased costs and reduced efficiency.
In the end, many companies find that their expectations of "Cloud computing will be cheaper and easier" are not met with success, and they end up disappointed or even burdened financially.
It's not just the cloud service provider's fault! Companies may also be to blame
It's tempting to say, "It's the cloud provider's fault for raising prices!" But the truth is, companies can do better. But many companies don't implement cost-cutting measures properly or don't look closely at how much they're using. Why?
Many organizations introduce the cloud without having a concrete plan for how to use it. Even if they start by saying "Let's try the cloud," they forget to consider how to make the most of their resources.No clear goalsAs things stand, it's difficult to use the cloud cost-effectively.
And right now, many companies are turning their attention to tasks that use AI (artificial intelligence) and machine learning (technology that allows computers to learn patterns from large amounts of data). According to one forecast, these tasks will account for half of cloud computing resources by 2029. AI and machine learning require a lot of resources, so if they are not properly planned and used efficiently, it can be extremely costly. It is important to discuss costs early on so that you don't end up saying, "This isn't what I expected!" after the system is up and running.
Save money on cloud services with these steps!
So how can you reduce your cloud costs? Don't worry, there are steps you can take. Here are some key steps that businesses should take proactively.
Step 1: Make a plan first
Before you can enjoy the benefits of cloud technology,Why use the cloud, for what purpose, and what approach should you take?It's important to have a clear plan for your business. Identify which operations are appropriate for the cloud and which are not. Then evaluate whether a public cloud (a service that anyone can use, such as Amazon AWS or Microsoft Azure), a private cloud (a cloud environment created for a specific company), or a hybrid cloud (a combination of public and private) fits your business goals and budget.
Step 2: Don't forget to "optimize" before migrating to the cloud
Before moving data to the cloud, it is important to "optimize" it. This means adjusting the system so that it runs efficiently and with high performance in the cloud.Try to avoid sending data to the cloud in its current state.Take some time to review your current system and adjust it to improve performance. Specifically, this means reconsidering the application structure, optimizing resource usage, and eliminating wasteful parts.
Step 3: Prevent waste by creating rules (governance)
To effectively manage cloud costs, it is essential to have a solid "governance" system. Create clear guidelines for how to prepare resources, how to monitor them, and when to decommission them. It is important to have a proper management system in place so that costs can be properly tracked and resource usage stays within budget.
What is "FinOps", financial management in the cloud era?
After reading this far, some of you may be thinking, "That seems difficult..." It is true that understanding and managing cloud usage requires specialized knowledge.FinOps” is the idea.
What is FinOps?Financial management methods in a cloud environmentFinOps is a combination of the words "Finance" and "Operations," and aims to closely monitor cloud costs, allocate resources efficiently, and maximize value overall. Many companies still lack the skills to put FinOps into practice.
It is important to be cost-conscious from the beginning, especially with AI systems. AI and machine learning tasks will only increase in the future, so start preparing now. Setting rules and governance specific to AI tasks early will help prevent budget overruns. This also includes clarifying the computing resources required and assessing whether the current infrastructure (underlying facilities and systems) can handle them efficiently and without waste.
そ し て,Continuous improvementCloud services are constantly evolving. It is essential to constantly monitor your resource usage and costs to ensure it remains optimized over time. Use tools and services that provide you with up-to-date information to avoid overpaying for capacity or underutilizing available resources.
Summary: Be smart with your cloud costs and take advantage of future technology!
Just because cloud computing costs are rising doesn't mean you should give up on cloud computing.Manage costs proactively, rather than relying on cloud service providersWhile major providers like Amazon Web Services, Microsoft Azure, and Google Cloud certainly share some of the blame, companies themselves should also be making an effort to cut down on unnecessary spending and avoid the disappointments that often plague cloud users.
Moving your business to the cloud is not a one-time thing. As technologies like AI advance,Continuously optimize and adjustCompanies that understand this reality and respond appropriately will not only save money, but will also be better positioned to succeed as they adopt AI and other cutting-edge technologies that rely on cloud computing.
A word from the author (John)
There are times when the cloud seems like a really convenient "magic wand." But after reading today's article, I hope you've realized that it's not just about using it. No matter how powerful a tool it is, it's important to use it wisely. I hope you'll be mindful of costs and get the most out of the cloud!
This article is based on the following original articles and is summarized from the author's perspective:
Don't be a victim of high cloud costs