Enteros Optimizes Cloud Resources with Shared Costs Strategy

Introduction

As more organizations move to the cloud, the importance of optimizing cloud resources becomes increasingly clear. Cloud computing offers many benefits, such as flexibility, scalability, and cost savings, but without proper resource management, these benefits can be diminished. Enteros, a leading provider of cloud services, has implemented a shared costs strategy to optimize their cloud resources and improve collaboration among their teams. In this blog, we will explore the benefits of shared costs strategy and how it can be used to optimize cloud resources.

Shared Costs Strategy

The shared costs strategy is a model of cost allocation in which the costs of cloud resources are shared among different teams or departments based on usage. This means that each team or department is only charged for the resources they use, and the costs of shared resources are divided among the teams based on a pre-determined formula. Shared costs strategy helps to ensure that the cost of cloud resources is distributed fairly among the different teams or departments, which can promote collaboration and prevent silos.

Benefits of Shared Costs Strategy

The shared costs strategy offers several benefits, including:

1. Cost Savings: Shared costs strategy can help organizations save money by reducing wasted resources. By only charging for resources that are actually used, organizations can reduce their cloud costs significantly.

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   Resource Utilization: Shared costs strategy can help organizations optimize their cloud resources by promoting efficient resource utilization. Each team or department is responsible for monitoring and optimizing their own usage, which can lead to better resource utilization and cost savings.

3. Collaboration: Shared costs strategy can promote collaboration among different teams or departments. Since the cost of shared resources is divided among the teams based on usage, teams have a shared incentive to optimize resource utilization and collaborate with each other.

How Shared Costs Strategy Optimizes Cloud Resources

The shared costs strategy can be used to optimize cloud resources in several ways:

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   Improved Cost Management: By using shared costs strategy, organizations can more accurately track and report on their cloud costs. This can help identify areas of high resource usage and optimize costs accordingly.

2. Efficient Resource Allocation: Shared costs strategy can encourage teams to use cloud resources more efficiently, resulting in better resource allocation and cost savings.

3. Enhanced Collaboration: Shared costs strategy can promote collaboration among different teams or departments, resulting in better resource utilization and cost savings.

Cloud Resources Optimization

Optimizing cloud resources is critical for organizations that want to maximize the benefits of cloud computing. However, there are several challenges that must be addressed, such as:

1. Resource Wastage: Without proper resource management, cloud resources can be wasted, resulting in unnecessary costs.

2. Silos: Different teams or departments may use their own cloud resources without considering the needs or requirements of other teams or departments. This can lead to resource duplication and inefficiencies.

3. Lack of Visibility: Without proper tracking and reporting, it can be difficult to identify areas of high resource usage and optimize costs.

Shared costs strategy can help address these challenges and optimize cloud resources by promoting collaboration, efficient resource utilization, and cost savings.

Implementation of Shared Costs Strategy

Implementing shared costs strategy requires careful planning and execution. Here are some key considerations when implementing shared costs strategy:

1. Define Cost Allocation Formula: The cost allocation formula should be fair and transparent, and should take into account the different needs and requirements of each team or department.

2. Determine Resource Usage Metrics: Resource usage metrics should be defined and tracked to ensure accurate cost allocation. These metrics can include CPU usage, storage usage, network bandwidth, and more.

3. Establish Governance Policies: Governance policies should be established to ensure compliance with security and regulatory requirements.

4. Provide Guidance and Best Practices: Guidance and best practices should be provided to teams to ensure efficient resource utilization and cost savings.

5. Monitor and Optimize Resource Usage: Resource usage should be regularly monitored to ensure that the shared costs strategy is effective in optimizing cloud resources. Teams should be encouraged to regularly review their resource usage and make adjustments as needed.

At Enteros, implementing shared costs strategy involved the following steps:

1. Defining a cost allocation formula that was fair and transparent, and took into account the different needs and requirements of each team.

2. Determining resource usage metrics, such as CPU usage, storage usage, and network bandwidth, and implementing tools to track and report on resource usage.

3. Establishing governance policies to ensure compliance with security and regulatory requirements.

4. Providing guidance and best practices to teams to encourage efficient resource utilization and cost savings.

5. Regularly monitoring resource usage and optimizing costs based on usage patterns.

Results of Shared Costs Strategy Implementation

The implementation of shared costs strategy at Enteros has resulted in several benefits, including:

1. Cost Savings: Enteros has been able to reduce its cloud costs significantly through the use of shared costs strategy. By only charging for resources that are actually used, Enteros has been able to reduce its cloud costs by up to 30%.

2. Resource Utilization: The shared costs strategy has encouraged teams to use cloud resources more efficiently, resulting in better resource allocation and cost savings. By monitoring resource usage and optimizing costs based on usage patterns, Enteros has been able to reduce resource wastage and improve resource utilization.

3. Collaboration: The shared costs strategy has promoted collaboration among different teams and departments at Enteros. Teams are incentivized to work together to optimize resource utilization and reduce costs, resulting in better collaboration and improved communication.

Best Practices for Optimizing Cloud Resources

In addition to shared costs strategy, there are several other best practices that organizations can use to optimize their cloud resources:

1. Monitor Resource Usage: Regularly monitoring resource usage can help identify areas of high resource usage and optimize costs accordingly.

2. Automate Resource Provisioning: Automating resource provisioning can help organizations quickly provision and deprovision resources as needed, resulting in better resource utilization and cost savings.

3. Use Cloud Cost Management Tools: Cloud cost management tools can help organizations track and report on their cloud costs, identify areas of high resource usage, and optimize costs accordingly.

4. Leverage Reserved Instances: Reserved instances can provide significant cost savings for organizations that have predictable usage patterns.

5. Implement Resource Tagging: Resource tagging can help organizations track and report on their cloud costs by providing a way to categorize resources and associate them with specific teams or departments.

How Enteros Plans to Continue Optimizing Cloud Resources

Moving forward, Enteros plans to continue optimizing its cloud resources through the use of shared costs strategy and other best practices. Enteros will continue to monitor resource usage, optimize costs based on usage patterns, and provide guidance and best practices to teams to encourage efficient resource utilization and cost savings.

Conclusion

Optimizing cloud resources is critical for organizations that want to maximize the benefits of cloud computing. The shared costs strategy can be an effective way to optimize cloud resources by promoting collaboration, efficient resource utilization, and cost savings. By implementing shared costs strategy and other best practices, organizations can reduce cloud costs, improve resource utilization, and promote collaboration among different teams and departments.

About Enteros

Enteros offers a patented database performance management SaaS platform. It automate finding the root causes of complex database scalability and performance problems that affect business across a growing number of cloud, RDBMS, NoSQL, and machine learning database platforms.​​​​​​​