Cloud cost optimization ranges from simple business management practices to complex scientific and engineering areas such as operations research, decision science, analytics, modeling, and forecasting. Every organization that aims to minimize overhead needs to reduce the cost of operations.

A simple lift and shift approach to replicating an on-premises application to the cloud without any redesign for cloud computing capabilities can cause negative financial implications as one ends up paying for servers that are idle most or all of the time. Therefore, Cloud cost optimization should be a fundamental business process that every organization should consider seriously.

Early in the cloud's adoption, engineers realized how infrastructure could be managed with automation, and Amazon Web Services (AWS) introduced tools for cost-saving, such as the Trusted Advisor tool. By writing automation scripts, cleaning up unused resources, and reporting resources at scale, engineers could achieve cost optimization in the cloud. Hence, identifying opportunities for cost optimization is critical to prioritizing resources, reducing inefficiencies and waste, and creating sustainable and scalable cloud cost management strategies.

Effective cloud cost optimization strategies such as cloud-native design, operational refinement, capacity reservations, and volume discounts provide maximum cost-saving benefits in sustainable and scalable ways. Cloud native design implies using unique cloud capabilities to gain cost advantages. For instance, auto-scaling, capacity paid for is not significantly in excess of the capacity being used.

Leveraging the AWS Well Architected Tool, architectural and design best practices, whitepapers, documentation, and expert advice from cloud providers are great strategies for optimizing cloud-native design and reducing cloud costs. However, cloud-native design involves a certain level of skills, experience and awareness of the cloud cost implications.

Therefore, organizations should develop ongoing cloud cost management plans that incorporate tracking spending per cost center, reviewing billing and pricing, and identifying software and automation needs. Prioritizing Cloud cost management efforts is critical to achieving cost savings that add up to thousands or millions of dollars over time.