Core practices
The levers that actually move cloud spend.
These are the established, vendor-neutral practices behind most cloud cost optimization work. Savings vary entirely by estate — anyone quoting a fixed percentage before looking at your bill is guessing.
01
Rightsizing compute
Instance families and sizes are usually chosen before real load data exists, then never revisited. Rightsizing compares actual CPU, memory, network and IOPS utilisation against the provisioned shape and moves workloads to the smallest instance that still meets headroom and burst requirements. Modern generations of the same family are often cheaper and faster, so a generation upgrade is frequently the first saving available.
02
Reserved instances and savings plans vs on-demand
On-demand pricing buys flexibility you may not need. Where a baseline of compute runs continuously, one- or three-year commitments (reserved instances, savings plans, committed use discounts) trade that flexibility for a materially lower rate. The discipline is to commit only to the stable baseline, keep the variable layer on-demand, and track coverage and utilisation so commitments do not go unused.
03
Spot and preemptible capacity
Spare hyperscaler capacity is sold at a steep discount on the condition it can be reclaimed with little notice. That suits fault-tolerant, interruptible work — batch processing, CI runners, rendering, stateless queue consumers, many data-pipeline stages. It requires checkpointing, retry logic and diversified instance pools, and it should never carry a workload that cannot survive eviction.
04
Storage tiering
Object and block storage costs are driven by both capacity and access pattern. Hot tiers price for frequent reads; cool and archive tiers cost far less per GB but add retrieval latency and per-request fees. Lifecycle policies that age data automatically from hot to cool to archive — matched to genuine access frequency and retention obligations — are one of the least disruptive optimisations available.
05
Eliminating unused and orphaned resources
Cloud estates accumulate spend with no owner: volumes left unattached after an instance is terminated, idle load balancers, unassociated public IPs, forgotten snapshots and stale AMIs, non-production environments running through nights and weekends, dangling NAT gateways. None of it appears in a design document; all of it bills monthly. Periodic sweeps plus automated non-production schedules remove it.
06
Cost visibility, tagging and allocation
You cannot optimise what nobody owns. A consistent tagging taxonomy — environment, application, team, cost centre — turns one aggregate invoice into per-team, per-service accountability, and makes anomaly detection and budget alerts meaningful. Tag policies enforced at provisioning time work; retrospective tagging clean-ups rarely hold.
07
Rate comparison across providers
Where a workload is genuinely portable, comparable compute, egress and storage rates differ between hyperscalers, and between hyperscaler and private or colocated infrastructure. This matters most for steady-state, high-egress or data-heavy workloads. It is worth modelling honestly — including migration effort and operational overhead — rather than assuming either that multi-cloud always saves money or that it never does.