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7 Effective Practices For Multi-Cloud Cost Optimization

  Keith Lafaso     Apr 11, 2024

7 Effective Practices For Multi-Cloud Cost OptimizationIf you're part of an organization that's jumped on the multi-cloud bandwagon, you've probably realized that managing costs across various cloud platforms can be challenging. Each cloud provider comes with its own set of pricing models, billing structures, and management tools, making it a challenge to get a clear picture of your cloud spending and spot opportunities for optimization. But don't worry, we've got your back! In this blog post, we're going to walk you through some tried-and-true strategies and best practices for optimizing costs in multi-cloud environments.

Understanding Multi-Cloud Cost Drivers

Before we dive into the nitty-gritty of optimization techniques, let's first get a handle on the factors that drive cloud costs in a multi-cloud setup:

  • Diverse Pricing Models: Each cloud provider offers a variety of pricing models, like on-demand, reserved instances, spot instances, and committed use discounts. Trying to navigate these options across multiple clouds can feel like trying to solve a Rubik's cube blindfolded.
  • Fragmented Visibility: Each cloud provider has its own dashboard and reporting tools, which can make it tough to get a bird's eye view of the total cost of ownership (TCO) across all your clouds.
  • Complex Cost Structures: Cloud providers may charge based on different metrics (think hourly, per-second, per-request), have different pricing tiers for regions, and offer different discounts. This can make cost estimation and budgeting feel like you're trying to hit a moving target.
  • Increased Management Overhead: Keeping track of spending across multiple cloud platforms can require more effort, collaboration, and potentially additional tools. It's a bit like juggling, the more balls (or in this case, clouds) you add, the harder it gets.

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Multi-Cloud cost Optimization Strategies

Now that we've covered the cost drivers, let's move on to some strategies that can help you keep those costs in check:

  • Consistent Tagging and Resource Allocation: Establish a consistent tagging strategy across all cloud environments. This can help you accurately attribute costs to teams, projects, or applications, improving accountability and enabling granular cost tracking and optimization.
  • Automated Cost Controls: Make use of automation tools and processes to enforce budgets, set alerts for cost anomalies, and automatically scale resources based on demand or schedules. This can reduce manual effort and ensure proactive cost management.
  • Rightsizing and Resource Optimization: Keep a close eye on resource utilization and leverage rightsizing recommendations to match allocated resources (like compute, storage, etc.) with actual workload demands. This can help you avoid over-provisioning or under-utilization.
  • Leveraging Pricing Models: Analyze your workload characteristics and usage patterns to determine the most cost-effective pricing models (like reserved instances, spot instances, committed use discounts) across different cloud providers.
  • Cloud-Native Design and Automation: Embrace cloud-native architectures and automation practices. This can ensure resources are provisioned and scaled dynamically based on demand, minimizing waste and maximizing cost-efficiency.
  • Centralized Cost Management Platform: Consider implementing a centralized cost management solution. This can consolidate cost data from multiple cloud providers, giving you unified visibility, cost allocation, analysis, and optimization recommendations.
  • Multi-Cloud Governance and FinOps: Establish a comprehensive multi-cloud governance framework and adopt FinOps practices. This can help align cloud spending with business objectives, enforce policies, and enable cost transparency and accountability across teams and projects.


Cloud cost optimization is an ongoing process, as your business requirements, workloads, and cloud service offerings evolve over time. Regularly reviewing and adjusting your cloud environment is essential to maintain cost-efficiency.

WEI's cloud solutions include cost optimization engagements, where our experts work closely with your team to monitor, analyze, and optimize your cloud environment, ensuring you stay ahead of changing demands and take advantage of new cost-saving opportunities.

By embracing these cloud cost optimization strategies and leveraging WEI's expertise, you can unlock the full potential of cloud computing while maintaining a cost-effective and sustainable cloud infrastructure. Contact WEI to learn more. 

Next Steps: Enterprises are increasingly shifting to a hybrid cloud strategy to support and modernize their operations model. Learn why this is critical to meaningful digital transformation. Download our free whitepaper, How Hybrid Cloud Can Launch Your Digital Transformation, to find out more.   

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Tags  AWS Microsoft Azure Multi-cloud multicloud hybrid multi-cloud Cloud Management Google Cloud Platform

Keith Lafaso

Written by Keith Lafaso

Keith has over 10 years of experience in cloud computing and solutions architecture, he is a passionate and innovative cloud architect at WEI. He leverages his AWS certifications and expertise to design, implement, and optimize scalable, secure, and cost-effective cloud solutions for various clients and projects. Keith also has a strong background and interest in game development, having authored two books on scalable gaming patterns on AWS and contributed to several game-related AWS learning courses. His core competencies include cloud architecture, AWS, VMware, data migration, file storage, and game development. He enjoys collaborating with diverse and talented teams, learning new technologies and best practices, and delivering high-quality solutions that meet the needs and expectations of the customers and stakeholders. He is always looking for new challenges and opportunities to grow and advance my skills and career in the cloud and gaming industry.

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