Neev Systems Cloud Cost Optimization

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How is Cloud Cost Optimization different from
Cloud Cost Management?
Here are the 12 differences
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Aspect Cloud Cost Management Cloud Cost Optimization
Definition Focused on reducing cloud expenses while maintaining or improving performance and functionality. Broader discipline that includes cost optimization but also encompasses cost tracking, budgeting, forecasting, and overall financial governance.
Primary Goal Minimize cloud spending without sacrificing performance or user experience. Ensure cost visibility, control, and alignment with budgets and business goals.
Focus Specific cost reduction strategies, like rightsizing, resource scheduling, and using reserved instances. Comprehensive approach, including tracking, analysis, governance, budgeting, and optimization strategies.
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Aspect Cloud Cost Management Cloud Cost Optimization
Key Activities Identifying underutilized resources.Right-sizing instances and resources. Leveraging reserved instances. Implementing auto-scaling and resource scheduling. Tracking and categorizing cloud costs.Setting budgets and cost allocation. Analyzing spending patterns and trends. Implementing policies, cost controls, and chargebacks.
Implementation Approach Tactical and execution- oriented. Focused on immediate cost savings. Strategic and encompassing a long-term perspective on cost control.
Tools and Technologies Cloud cost analysis tools, cost calculators, and optimization frameworks. Cloud cost management platforms, financial dashboards, and cost allocation tools.
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Aspect Cloud Cost Management Cloud Cost Optimization
Responsibility Typically falls under the purview of cloud engineers, DevOps, or IT teams. Involves various stakeholders, including finance, IT, and business managers.
Performance Impact Aims to balance cost savings with performance requirements. Focuses on aligning costs with business objectives, which may or may not impact performance.
Metrics and KPIs Cost savings, cost per performance unit (e.g., cost per transaction), utilization rates. Budget compliance, cost forecasting accuracy, cost allocation, and spending visibility.
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Aspect Cloud Cost Management Cloud Cost Optimization
Compliance and Governance Less emphasis on compliance and governance aspects. Includes governance policies, security, and compliance considerations.
Cost Reduction Approach Directly reduces cloud expenses by optimizing resource utilization. Ensures that spending is controlled and aligned with organizational goals.
Business Alignment Primarily technical focus. Aligns cloud spending with business objectives and budget constraints.
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