Cost optimization in the public cloud with greater efficiency

Introduction

The public cloud has revolutionized how companies scale operations, providing flexibility and high performance on demand . However, without an efficient strategy, costs can quickly spiral out of control, compromising business profitability.

A study by Flexera revealed that up to 30% of cloud spending is wasted due to inefficient management practices and inadequate resource sizing . This means that many companies are paying for services they are not using to their full potential.

So, how can you ensure maximum financial efficiency in the public cloud without compromising system performance? What strategies can help avoid waste and optimize investments ?

In this article, we will explore the strategies for reducing costs in the public cloud, from choosing the right instances to using specialized tools for financial optimization. If your company seeks more control over cloud costs without sacrificing scalability and security, this is the right content for you.

Enjoy your reading! 

What is a public cloud?

The public cloud is a cloud computing model in which infrastructure resources, such as servers, storage, and networks, are made publicly available via the internet . This model is managed by cloud service providers such as Amazon Web Services (AWS), Microsoft Azure , and Google Cloud Platform (GCP), which offer on-demand access to a wide variety of services and applications.

Unlike a private cloud, which is used exclusively by a single organization, a public cloud shares resources among multiple users , allowing for greater scalability, flexibility, and cost optimization. This means that companies can expand their operations rapidly without needing to invest in their own infrastructure, paying only for the resources they use.

Here are the main features of the public cloud:

• Scalability: the ability to increase or decrease resources according to demand;
  
• On-demand payments: a pay-as-you-go (prepaid, in a closer translation in Portuguese), in which the company only pays for what it consumes;
  
• Global access: users can access applications and data from anywhere, with high availability;
  
• Provider-managed maintenance and security: updates, patches , and support are provided directly by the cloud company.

We can say that the public cloud has become essential for companies of all sizes, driving digital transformation and enabling more agile and efficient operations . However, without a well-defined strategy, costs can quickly spiral out of control.

Next, we will explore the most efficient strategies for optimizing costs and avoiding waste. 

Effective strategies for reducing costs in the public cloud

The public cloud offers flexibility and scalability , but it also requires strategic financial planning. Companies that don't monitor their resource consumption often end up spending more than necessary. Avoiding waste and optimizing costs involves smart decisions in sizing, instance selection, and infrastructure automation.

Next, we will explore the most effective strategies to ensure your company maximizes the benefits of the cloud without compromising the budget.

Choosing the right instance and sizing it correctly

One of the most common mistakes when migrating to the cloud is oversizing resources, that is, contracting more capacity than is actually needed. According to AWS , instances that show maximum CPU and memory utilization below 40% over a four-week period may be oversized . Adjusting these resources can generate significant cost savings and optimize the efficiency of cloud services.

To avoid this waste, it is essential to adopt rightsizing , which is the process of adjusting provisioned resources to what is actually used. Some good practices include:

• Analyze consumption patterns to identify oversized instances. Tools such as AWS Cost Explorer , Azure Advisor , and Google Cloud Recommender can help in this process.
  
• Test different instance types before committing to a fixed configuration. workloads can benefit from elastic virtual machines;
  
• Use auto scaling so that your infrastructure dynamically adjusts to actual demand.

Choosing the right instance not only reduces costs but also improves operational efficiency , ensuring that the company only pays for what it actually needs.

Use of reserved instances and savings plans

One of the most efficient ways to reduce cloud costs is to opt for payment models that offer discounts in exchange for usage commitments. Two popular options for this are reserved instances (RIs) and savings plans , which can generate significant savings compared to the traditional on - . 

Reserved instances allow companies to commit to a specific instance type for 1 or 3 years in exchange for a significant discount, which can be up to 75% less compared to the on-demand . They are ideal for workloads , such as:

• Applications that run continuously and do not vary much in size or demand;
  
• Databases and application servers that require high availability ;
  
• Stable production environments that do not require frequent configuration changes.

Check out the types of reserved instances :

• Standard RIs : higher discount, but less flexibility for switching instances;
  
• Convertible RIs : allow instance type changes, but offer smaller discounts.

Savings plans, on the other hand, are a more flexible alternative to RIs, offering discounts without the need to tie the commitment to a specific instance type. Instead, the user commits to a minimum hourly spend over 1 or 3 years. The advantages are as follows:

• Greater flexibility to switch instance types, regions, and instance families;
  
• Available for various services in addition to EC2, such as Fargate and Lambda ;
  
• It can generate savings of up to 66% on-demand price .

Both RIs and savings plans help reduce cloud costs, but the ideal choice depends on the level of predictability and flexibility needed. Companies with workloads may benefit more from RIs, while those that need greater freedom to change configurations may opt for savings plans .

Automation and intelligent scalability

efficient and cost-effective

cloud infrastructure . With features like Auto Scaling and Infrastructure as Code (IaC), it's possible to ensure that services use only the necessary capacity , avoiding waste and improving reliability.

Auto Scaling allows you to automatically adjust your infrastructure according to demand, ensuring that more instances are added during peak periods and reduced when they are no longer needed. Some solutions include:

• AWS Auto Scaling : automatically manages EC2, ECS, and RDS databases;
  
• Azure Virtual Machine Scale Sets : allows dynamic scaling of virtual machines;
  
• Google Cloud Managed Instance Groups : automates the scalability of workloads in the cloud.

Furthermore, Infrastructure as Code (IaC) is an essential approach for optimizing costs and reducing manual work. Tools like Terraform and AWS CloudFormation allow you to configure cloud environments in a programmable and repeatable , ensuring greater efficiency.

Companies can also adopt CI/CD ( Continuous Integration / Continuous pipelines , such as GitHub Actions and Jenkins software deployment , ensuring continuous updates without manual intervention .

Investing in smart scalability and automation allows companies to optimize costs and maintain the flexibility needed to grow without compromising resources .

Continuous monitoring and optimization

Optimizing costs in the cloud is not a one-time process, but a continuous cycle of monitoring and adjustments. This is because maintaining an efficient infrastructure requires constant tracking of resource consumption and adaptation to business needs.

To achieve this, tools like AWS CloudWatch , Azure Monitor , and Google Cloud Operations offer real-time visibility into service performance, allowing users to identify bottlenecks and inefficiencies before they impact operations.

Some strategies for continuous optimization include:

• Analyze logs and metrics regularly to identify usage patterns and cost reduction opportunities;
  
• Set up smart alerts to detect excessive consumption and adjust the infrastructure automatically;
  
• Review and optimize instances and services periodically, ensuring that provisioning is aligned with the actual needs of the business.

Thus, continuous monitoring allows for more informed decisions and helps avoid surprises in cloud bills, ensuring that resources are used strategically and sustainably .

Note: Reducing costs in the public cloud isn't just about cutting expenses , but about operational intelligence. The strategies we explore here show that financial optimization and technological efficiency go hand in hand. From choosing the right instance to automation and continuous monitoring, each action contributes to a more sustainable and economically balanced environment .

But how can we ensure that all these strategies are applied practically and continuously ? Specialized tools play a key role in this journey, allowing companies to have complete visibility into consumption, identify bottlenecks, and make more strategic and data-driven decisions.

In the next section, we'll explore the main tools for controlling and reducing costs in the public cloud. Stay tuned! 

Tools for cost control and reduction

Managing public cloud costs efficiently requires more than just best practices: it demands specialized tools. In an increasingly competitive market, companies that implement cloud-based financial management and monitoring tools are able to reduce their operational costs by an average of 32% , according to a Flexera report .

And the reason is simple: having visibility, predictability, and automation is essential to eliminate waste and ensure that every resource used is aligned with actual demand. Without proper control, the risk of hidden costs, underutilization of instances, and unexpected charges increases considerably.

To ensure maximum financial control in the public cloud, companies can rely on three main categories of tools . Below, we explore what they are and how each of these solutions can help companies maintain an efficient, cost-effective, and scalable cloud environment.

Financial monitoring platforms

Having complete control over cloud costs means more than just tracking expenses—it means understanding where and how resources are being used. To that end, financial monitoring platforms help companies:

• Identifying areas of waste and opportunities for optimization ;
  
• Creating cost forecasts , avoiding unexpected expenses;
  
• Automating alerts and adjustments , ensuring that the infrastructure remains efficient.

Among the main tools on the market, the following stand out:

1. Apptio Cloudability

• It offers a comprehensive view of costs and optimization of IT investments;
• It helps companies understand resource consumption and apply FinOps (financial management practices in the cloud) to maximize ROI ( on Investment).
• advanced and detailed financial control .

2. IBM Turbonomic 

• Focus on automation to avoid unnecessary expenses without compromising performance;
• It dynamically adjusts resource allocation, ensuring that applications receive only what they need to operate efficiently;
• It's ideal for companies that need to balance performance and cost .

3. CloudCheckr 

• It provides cost management
• In addition to financial monitoring, it offers compliance and security analytics , ensuring that resources are always properly configured;
• It is ideal for companies seeking complete management of their cloud infrastructure.

Each of these platforms allows for a detailed analysis of resource consumption, enabling strategic adjustments to ensure greater efficiency and lower costs. 

Native solutions from cloud providers

Cloud service providers themselves offer specialized tools for financial control, helping companies track expenses in real time and implement optimization strategies. Check out the best-known solutions in this category: 

1. AWS Cost Explorer

• It offers detailed monitoring and cost forecasting on AWS;
• It generates interactive charts for expense analysis, allowing you to identify trends and reduce costs with recommendations from AWS itself;
• It's ideal for companies that use AWS and want native control without needing external tools.

2. Azure Cost Management + Billing

• Performs cost management and financial optimization within Microsoft 's Azure ;
• It integrates with Microsoft Power BI , enabling advanced visualizations and customized reports on cloud spending;
• It's ideal for companies that need to align cloud costs with internal financial goals .

3. Google Cloud Billing

• It offers detailed analysis and cost control in Google Cloud ;
• It integrates with BigQuery , allowing companies to create advanced cost analysis models and optimize investments;
• It's ideal for companies that use Google Cloud and want to automate financial insights .

In short, native solutions are highly recommended for companies that want direct visibility within their own cloud platform, without the need for external software . 

software for expense management

For many companies, the native tools offered by cloud providers are not sufficient for complete and strategic financial control. When operations involve multiple cloud providers ( multicloud ) or require more advanced automation , the use of third-party cost management software

These solutions offer functionalities that go beyond basic monitoring , allowing:

• Centralizing costs in a single dashboard , consolidating data from different providers;
  
• Predictive analytics and financial intelligence, helping to forecast and optimize future expenses;
  
• Automating the shutdown of idle resources, reducing waste without compromising operations;
  
• Customized alerts for budget control, notifying you unexpected cost variations;
  
• Price comparison between different platforms, making it easier to choose the best option for each workload.

By integrating software in the cloud, companies gain greater predictability, automation, and security in managing their investments, ensuring that every penny spent truly generates a return for the business.

As we have seen, adopting specialized cloud-based cost management tools allows companies to have more control, automation, and financial predictability, reducing waste and optimizing investments. 

However, for this management to be truly efficient, it's not enough to simply use tools: it's necessary to adopt good financial governance practices , ensuring that resources are used strategically. This is what we will explore next.

Best practices for financial efficiency in the public cloud

Cloud computing is growing rapidly, and companies are investing more and more to ensure a scalable and flexible infrastructure. 

A study by the International Data Corporation (IDC) indicates that , by 2027, global spending on public cloud services is expected to exceed US$1.35 trillion . This growth reflects the increased demand for innovation and digitalization, but also raises a warning: if these investments are not well managed, the waste of resources could grow proportionally.

To avoid unnecessary costs and ensure that every resource used delivers a real return, it is essential to adopt good governance practices, optimize resources, and use smart technologies for financial control.

Next, we will look at the main strategies for maintaining financial efficiency in the public cloud. 

Governance and budgeting

Lack of financial control can lead to unnecessary expenses and poorly optimized infrastructure. To avoid this scenario, companies need to implement an efficient governance policy , ensuring visibility, planning, and control over cloud costs.

Some essential practices for efficient budgeting include :

• Setting budget limits and consumption alerts : Use tools like AWS Budgets , Azure Cost Management , and Google Cloud Budgets to prevent budget overruns with automatic notifications;
  
• Access control and resource creation : Implement RBAC ( Role-Based Access Control) to ensure that only authorized users can provision or modify resources in the cloud;
  
• Structuring a tagging for cost tracking : categorizing resources by project, business unit, or team, facilitating audits and detailed financial reports;
  
• Regular budget review : monitor consumption patterns and reallocate investments as needed to avoid waste .

With a well-defined policy, companies can maintain transparency in spending , predict future costs, and ensure that their cloud investment is sustainable. 

Reducing idle resources

Underutilized or forgotten resources are one of the main sources of financial waste in the cloud. According to Gartner , up to 30% of cloud infrastructure spending can be avoided with more efficient allocation and continuous monitoring .

To minimize waste, some key practices include: 

• Automatic deactivation of unused instances : configure rules to shut down servers outside of business hours or periods of low demand;
  
• Dynamic adjustment of computing capacity : use tools such as AWS Trusted Advisor , Azure Advisor , and Google Cloud Recommender to identify oversized instances and reduce their capacity;
  
• Storage optimization : implement solutions such as S3 Intelligent-Tiering or Azure Blob Storage Lifecycle Management , which automatically move less frequently accessed data to more cost-effective tiers;
  
• Workload consolidation : unifying workloads across fewer servers, ensuring greater efficiency without compromising performance.

By eliminating idle resources and continuously adjusting consumption, companies can significantly reduce operating costs and ensure efficient use of cloud infrastructure. 

Using serverless for optimization

Serverless computing is a model in which applications run on demand , without the need for the company to constantly provision or manage servers. Unlike traditional infrastructure models, where resources are active all the time, in serverless , services are activated only when needed and automatically shut down after execution.

This model eliminates costs associated with idle servers, automatically scales to meet demand, and reduces operational complexity, allowing teams to focus on application development instead of managing infrastructure. 

Among the main serverless computing available on the market are:

• AWS Lambda : automatically executes code in response to events, without the need for continuous provisioning;
  
• Azure Functions : allows you to run serverless applications with full integration into the Microsoft ;
  
• Google Cloud Functions : Executes code on demand, ensuring scalability and cost optimization.

By adopting serverless , companies can significantly reduce infrastructure costs, ensuring greater flexibility and operational efficiency without compromising scalability.

Implementing these practices is essential to avoid waste and optimize costs in the public cloud. However, maintaining this control efficiently requires specialized solutions that simplify management and ensure financial predictability.

And we at Skyone operate precisely in this area, offering tools and services that help companies structure their cloud operations more efficiently and cost-effectively . Below, we'll explore our contribution in more detail. Stay tuned!

Skyone: greater efficiency and lower costs in the public cloud

At Skyone , we believe the public cloud should be a strategic ally, not a source of unpredictable costs. Our focus is on ensuring our clients make the most of available resources , paying only for what they actually use.

With solutions that automate processes, optimize resource allocation, and provide complete visibility into cloud investments, we help businesses of all sizes reduce waste and make their infrastructure more efficient.

Our team is committed to: 

• Simplifying cloud migration : a structured process to avoid unnecessary costs and ensure high performance;
  
• Adjust resources in real time : scalable infrastructure according to demand, without paying for idle capacity;
  
• Monitor and predict costs with precision : advanced tools for financial control and continuous optimization;

• Reducing operational complexity : intelligent automation that frees up the team to focus on what really matters: innovation and growth.

Our commitment is simple: to ensure your company gets the most out of the public cloud, with no surprises on your bill and total operational efficiency .
Every cloud environment has unique challenges, and we at Skyone understand that. Talk to one of our specialists today and discover how to transform your cloud investments into a competitive advantage, with control, scalability, and financial predictability.

Conclusion

The public cloud has brought scale , flexibility, and innovation to businesses of all sizes, but a lack of efficient management can make costs unpredictable and business profitability

Throughout this article, we explored fundamental strategies for cost optimization in the cloud, from the intelligent selection of instances to the adoption of models such as serverless and financial monitoring tools. Avoiding waste and ensuring that each resource is used strategically is not just a matter of saving money, but a competitive advantage .

More than just cutting costs, cloud efficiency involves planning, automation, and continuous optimization . Companies that implement good governance practices and adopt technological solutions for cost management are able to grow with predictability and security, without compromising scalability and innovation.

The cloud is a means to boost business, not a financial obstacle. With the right approaches, it's possible to ensure maximum performance , security, and cost savings , while keeping the infrastructure aligned with the real needs of the operation.

Continue deepening your knowledge of cloud cost management: check out the article "How cloud governance can reduce costs and increase efficiency" here on the Skyone blog .

Sidney Rocha,
a cloud computing specialist, helps companies navigate the cloud universe safely and efficiently. On the Skyone blog, he covers everything from cloud architecture to strategies for performance optimization and cost reduction, ensuring that digital transformation happens in the best possible way.
Connect with Sidney on LinkedIn: https://www.linkedin.com/in/sidneyrochamn/