{"id":40069,"date":"2021-01-22T00:46:14","date_gmt":"2021-01-22T07:46:14","guid":{"rendered":"https:\/\/devblogs.microsoft.com\/premier-developer\/?p=40069"},"modified":"2021-01-20T13:53:19","modified_gmt":"2021-01-20T20:53:19","slug":"cloud-economics","status":"publish","type":"post","link":"https:\/\/devblogs.microsoft.com\/premier-developer\/cloud-economics\/","title":{"rendered":"Cloud Economics"},"content":{"rendered":"

Emmanuel Knafo<\/a> takes a look at cloud economics and cost optimization.<\/p>\n

\n

In this post, we discuss Cloud Economics. We will focus on\u00a0Cost Optimization<\/a>\u00a0which is the first pillar of the\u00a0Microsoft Azure Well-Architected Framework<\/a>. However, whenever possible, we will extract principles that apply to other Cloud Service Providers (CSP) such as\u00a0Amazon Web Services<\/a>\u00a0(AWS) and\u00a0Google Cloud Platform<\/a>\u00a0(GCP). The purpose is to cover today\u2019s reality: many enterprises and organizations are entrenched in\u00a0Multicloud<\/a>\u00a0and\u00a0Hybrid Cloud<\/a>\u00a0architectures. Thus any unified and consolidated approach must encompass these cloud models.<\/p>\n

I started my journey as Chief Information Officer (CIO) of\u00a0Structube<\/a>, a medium-sized furniture retailer in Canada. An all Microsoft shop with a traditional On-Premise datacenter, the natural choice for a cloud service provider is\u00a0Microsoft Azure<\/a>. However, like any fast growing company with relatively autonomous departments, as much as one would like to stick to a single strategic cloud provider or technology stack, inevitably, others creep in.<\/p>\n

In any such environment, with multiple technology stacks, operating systems, and devices to manage and support, Information Technology (IT) governance is challenging to say the least. The same is true for financial aspects of IT governance (i.e.\u00a0financial governance<\/strong><\/em>).<\/p>\n

With the advent of cloud, terms such as\u00a0commoditization<\/a>\u00a0have been used. While we are not interested in the polemic of whether computing has become a commodity akin to electricity, oil, gold, or wheat, we are distinctly aware that we are charged computing consumption at precise and predictable hourly rates (see\u00a0Azure Pricing Calculator<\/a>,\u00a0Google Cloud Pricing Calculator<\/a>, and\u00a0AWS Pricing Calculator<\/a>). Furthermore, new cloud pricing models have emerged such as\u00a0reservations<\/em><\/strong>\u00a0(see\u00a0Reservations<\/a>,\u00a0Reserved Instances<\/a>,\u00a0Committed Use Discounts<\/a>),\u00a0spot pricing<\/em><\/strong>\u00a0(see\u00a0Azure Spot Virtual Machines<\/a>,\u00a0EC2 Spot Instances<\/a>,\u00a0Preemptible Virtual Machines<\/a>), etc. In addition, CSPs offer\u00a0a variety of controls<\/em><\/strong>, including usage quotas, budget alerts, and organizational permissions.<\/p>\n

In this article, we will explore how to track costs from these 3 cloud service providers. We will also carve out a strategy to estimate on-premise costs. Bear in mind that on-premise cost estimations tend to be\u00a0less precise (and\/or accurate)<\/a>\u00a0and can vary greatly from one enterprise or organization to another.\u00a0Tracking costs both in the cloud and on-premise in a uniform view is key<\/strong>: it enables us to perform cost estimation and optimization for\u00a0all<\/strong><\/em>\u00a0our workloads. This includes on-premise workloads, cloud workloads, hybrid workloads as well as workloads between clouds (i.e.\u00a0intercloud<\/em>\u00a0workloads).<\/p>\n

Before we dive into the details, I highly recommend listening to Adam Ronthal\u2019s webinar \u201cThe Future of Data & Analytics is in the Cloud<\/a>\u201c.\u00a0Adam Ronthal<\/a>\u00a0is VP Analyst at Gartner and has published many articles and webinars on financial governance for cloud among other topics. One of many key takeaways of his presentation is that the key metric you want to look at when doing cost optimization is the\u00a0Price-Performance ratio<\/a>.<\/p>\n

Continue reading on Emmanuel’s blog.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In this article, we will explore how to track costs from these 3 cloud service providers. We will also carve out a strategy to estimate on-premise costs.<\/p>\n","protected":false},"author":582,"featured_media":38475,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25],"tags":[108,10606,10607],"class_list":["post-40069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-azure","tag-cost","tag-economics","tag-optimization"],"acf":[],"blog_post_summary":"

In this article, we will explore how to track costs from these 3 cloud service providers. We will also carve out a strategy to estimate on-premise costs.<\/p>\n","_links":{"self":[{"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/posts\/40069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/users\/582"}],"replies":[{"embeddable":true,"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/comments?post=40069"}],"version-history":[{"count":0,"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/posts\/40069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/media\/38475"}],"wp:attachment":[{"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/media?parent=40069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/categories?post=40069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/devblogs.microsoft.com\/premier-developer\/wp-json\/wp\/v2\/tags?post=40069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}