Conquering Cloud Costs: Part 2 
- Reducing Instance Waste

Post date: July 24, 2019

Cloud Operations Series

This is a 6-minute read and is part 2 of a 3-part blog series on better managing your cloud costs. If you are just getting started in cloud cost management, we welcome you to take a look at part 1

Compute Waste Evolves into the Cloud (Why So Much Corporate Money evaporating Into Cloud)

For organizations of all sizes seeking compute resources, one of the most prevalent expenses, historically, has been hardware. Servers have been the most expensive components in the tech compute stack, they start to depreciate immediately after purchase. They are typically depreciated on 3-or-5-year schedules. Power and cooling costs are the next highest expense, though this can be trimmed where systems can power up / down, depending on utilization. Networking costs follow as the third highest expense. Other expenses such hardware storage facilities and their components (think cages, cameras, concrete, alarms, and sprinkler systems) are typically depreciated over 25 years. 


For organizations of all sizes and industries, the costs and complexity of managing one’s own compute has driven them to the cloud. In part two of our Conquering Cloud Costs series, we will focus on instance waste and how to remedy this problem. We will also introduce innovative cloud business models that are increasing in popularity.


Instance Waste (How Much Of Your Cloud Spend Is Going To Waste)

Cost management for cloud can pose challenges for organizations of any size. Big cloud providers are continually introducing new products and new pricing models, which can leave customers wondering which configuration is optimal for them. Organizations of any size, cloud skill level running public, multi, and/or hybrid clouds can experience instance waste. This form of waste can come from several sources, including overprovisioning (rented too much), high-cost instance selection and usage (rented wrong type), and suboptimal region selection and usage (rented in wrong location). Let’s look at these individually and examine how each issue can be better managed for better cost management.


Overly Large Infrastructure 

More than half of companies using cloud services are paying for more than they need. This is so common, in fact, that it has been estimated that $15 billion will be wasted in 2019 on this issue alone. Whenever possible, reduce your instance plan by one level or size. Doing so may drive cost savings by as much as 20-30%. Reducing your instance plan two sizes, if possible, can decrease your costs by a sizable 50 to 70%


Idle Computing Resources

Idle instances are a significant waste issue. Most companies allow instances to run all the time, including weekends and holidays. Suspending or reducing instances during non-peak times according to use data will dramatically cut down on idle waste and, in turn, extra costs. Moreover, instances used for short-term or temporary computing such as testing, training, development, and refreshes often continue to run without killing the instance. Terminating temporary instances directly after use saves a significant amount of money and resources. 


High-Cost Instance Regions and Availability Zones

If you are using regions and zones that are nearby but expensive, you may be wasting money. Rather than letting your service provider make those decisions for you, make sure to override any automatic region or zone selection settings. Choosing a region or zone that is less costly will offer you abundant cost savings. What’s more, you can also get reduced latency by changing regions and zones, or, in some cases, by splitting zones. For example, if you don’t point to a specific endpoint with AWS, you will default to their US-West region in Oregon, USA. Fine if you are nearby and need the performance, not as great if you are in a lower cost region, need cost savings, and/or need higher performance/lower latency. 


A New, Lower Cost Model for Cloud

Ankr’s marketplace model supplies uses excess data center, mainframe, and device space to renters who need it on an on-demand, reserved, or spot basis. Everyone benefits from this model: Organizations and individuals who need compute are able to access it in significantly more flexible formats than before. Organizations of all sizes with any significant excess capacity in small and medium data centers, server rooms, and even mainframes located almost anywhere in the world are now able to offset sunk cost, boost equipment utilization rates, by generating revenue by renting out their excess compute capacity to Ankr and its’ customers. Surplus space is sold to customers who need services at rates often significantly lower than most big cloud offerings.

With their sharing model, Ankr’s monthly plans are lower than many big cloud plans. They are a notable significant 20 to 30 percent cheaper than up-and-comer the similar provider Digital Ocean, and a very significant 50 to 75 percent cheaper than AWS, Azure and Google Cloud Platform’s current on-demand monthly plan rates. The available options and prices offer important savings and increased flexibility to customers.

Ankr Platform has many cost savings built into the design, including the ability to adjust to daily usage. The technology is also faster, more secure, able to scale, and expandable. Most importantly, it’s very easy to use and costs less. If immediate cost savings is your goal, this is the cloud technology to adopt now.



Ultimately, the vision for the Ankr Platform is to be better performant, more scalable, easier to use, and more cost-effective than most big cloud offerings on the market. It is the emerging technology for those that want to stay ahead of the curve.

We invite you to learn more.

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