{"id":62429,"date":"2025-08-12T11:38:12","date_gmt":"2025-08-12T11:38:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/62429\/"},"modified":"2025-08-12T11:38:12","modified_gmt":"2025-08-12T11:38:12","slug":"how-enterprises-can-cut-costs-without-sacrificing-performance","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/62429\/","title":{"rendered":"How Enterprises Can Cut Costs Without Sacrificing Performance"},"content":{"rendered":"

\t\t \t \"\"<\/a>\t\t<\/p>\n

Cloud-native is the new standard. Over 90% of organizations<\/a> now use some form of cloud computing, according to O\u2019Reilly. Yet as cloud adoption accelerates, so do the costs, catching many businesses off guard.<\/p>\n

The assumption that cloud computing is inherently cost-effective has begun to unravel. Instead of predictable capital expenditures, organizations now face fluctuating operational costs. Poorly optimized workloads, hidden fees, and vendor lock-in have led to ballooning cloud bills. The rise of AI-driven workloads has only added to the financial strain.<\/p>\n

Josson Paul Kalapparambath<\/a>, Software Engineering Technical Leader at Cisco<\/a> specializing in architecting scalable platforms and solutions, has seen these challenges play out across enterprises. He believes businesses need a more disciplined approach to cloud economics\u2014one that treats cost optimization as a strategic priority rather than an afterthought.<\/p>\n

Why Cloud Costs Are Spiraling Out of Control<\/p>\n

The biggest shift companies often underestimate is moving from fixed, upfront infrastructure costs to variable, consumption-based billing. The cloud\u2019s convenience makes it easy to deploy resources quickly, but that same ease can lead to waste.<\/p>\n

A major culprit is over-provisioning. According to Gartner, nearly 30% of worldwide public cloud spending goes to waste<\/a>. Many companies over-purchase compute capacity to prevent performance bottlenecks but fail to scale back when demand drops. Data egress fees\u2014charged when transferring data across cloud regions or providers\u2014can also become a hidden financial drain.<\/p>\n

\t \"\"<\/a><\/p>\n

\u201cThere\u2019s a misconception that moving to the cloud is a guaranteed cost-saving decision, but it\u2019s highly situational,\u201d says Kalapparambath. \u201cWithout constant optimization, cloud infrastructure can creep beyond your needs. Leaving unused compute instances running or mismanaging storage can easily cost millions annually for larger enterprises.\u201d<\/p>\n

One of the biggest mistakes, he notes, is treating cloud spending as a purely technical concern rather than a financial strategy. \u201cCloud costs need the same level of oversight and accountability as any other major business expense. If you\u2019re not actively managing it, you\u2019re almost certainly overpaying.\u201d<\/p>\n

A Smarter Approach to Cloud Economics<\/p>\n

Cutting cloud costs doesn\u2019t require abandoning the cloud, but it will require making sure the architecture is there to accommodate it. Simply lifting and shifting workloads from on-prem to the cloud without optimization is a recipe for waste.<\/p>\n

One of the most effective ways to rein in cloud expenses is intelligent workload scheduling. By analyzing usage patterns and automating resource scaling, enterprises can ensure they\u2019re only paying for what they actually need.<\/p>\n

\u201cJust by properly scheduling workloads and managing resource allocation, companies can address 30 to 40% of their cloud bill,\u201d Kalapparambath explains. \u201cCloud providers offer optimization tools, but they don\u2019t force you to use them. Don\u2019t settle into default settings.\u201d<\/p>\n

Storage is another overlooked cost driver, and where the most common mistakes occur<\/a>. Many companies store redundant or outdated data in high-performance environments without considering the financial impact. Implementing tiered storage\u2014where frequently accessed data stays in premium storage while archival data moves to low-cost alternatives\u2014can yield substantial savings.<\/p>\n

\u201cStorage is one of the easiest areas to optimize, which is why it\u2019s the easiest to overlook,\u201d Kalapparambath says. \u201cCompanies rarely assess how much of their data needs to be in those high-speed, high-cost storage environments, and smart data lifecycle management is a quick way to improve what you already have.\u201d<\/p>\n

Hybrid Cloud: A Strategic Cost Advantage<\/p>\n

A common misconception is that moving everything to the cloud is the most cost-effective approach. In reality, a hybrid cloud strategy\u2014where some workloads remain on-premise while others leverage cloud scalability\u2014often delivers better financial and operational results.<\/p>\n

By keeping resource-intensive workloads in on-premise data centers and using the cloud for burst capacity, global accessibility, or AI-driven workloads, companies can minimize costs while maximizing flexibility. This approach, explains Kalapparambath, is particularly beneficial for industries with high-performance computing needs, such as large-scale data analytics and networking.<\/p>\n

\u201cChoosing cloud and on-prem isn\u2019t necessarily an either-or decision,\u201d he advises. \u201cSome workloads will always be more cost-effective on-prem<\/a>, while others benefit from cloud elasticity. Make those distinctions early.\u201d<\/p>\n

Beyond cost savings, hybrid architectures offer security and compliance advantages. Keeping sensitive data on-premise reduces reliance on expensive cloud-based security solutions and limits exposure to costly data transfer fees.<\/p>\n

The Future of Cost-Efficient Cloud Computing<\/p>\n

Cloud computing isn\u2019t going away, but the way companies manage their cloud investments must evolve. Businesses that take a passive approach to cloud spending will continue to face runaway costs.<\/p>\n

\u201cUtilizing cloud is a major financial commitment,\u201d Kalapparambath says. \u201cA data-driven approach to cloud economics is incredibly important. The tools to optimize spending already exist, but enterprises must actively right-size their resources and build architectures with cost awareness baked in.\u201d<\/p>\n

The companies that treat cloud management as an ongoing financial discipline will be the ones that reap the full benefits of cloud computing without the sticker shock.<\/p>\n","protected":false},"excerpt":{"rendered":"Cloud-native is the new standard. Over 90% of organizations now use some form of cloud computing, according to…\n","protected":false},"author":2,"featured_media":62430,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[64,63,257,105],"class_list":{"0":"post-62429","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-au","9":"tag-australia","10":"tag-computing","11":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/62429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=62429"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/62429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/62430"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=62429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=62429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=62429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}