Keeping Cyber Monday Profitable with Cloud Cost Optimization

Nov 22 2012 | by Zev Schonberg

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This Cyber Monday will likely see record-breaking spending with Adobe predicting $2 billion in revenue. But with the cloud providing much of the extra capacity needed to support the expected surge of visitors, the exact ROI of Cyber Monday can be difficult to calculate.
Here are a couple of tips and points to consider regarding cloud cost management for seasonal spikes.

How Much Does Your ‘Cyber Monday Cloud’ Cost

While retailers need extra cloud capacity for handling increased traffic and business, they also must know what that extra capacity is really costing them. Without this cost allocation insight they cannot determine if their Cyber Monday ‘investment’ is really worth it. Nor can they properly evaluate alternative options.
However, once companies can link the cost for each and every cloud resource to specific projects or periods, they can begin to make informed decisions about optimizing their cloud deployments and maximizing their ROI.

Capacity Planning for Optimal Deployments

Another important aspect of managing cloud consumption is analyzing current or past activity, particularly during seasonal peaks like Cyber Monday. By doing so, businesses can figure out what they really need in terms of capacity and plan for the next year more efficiently. This helps ensure that businesses reserve enough capacity from vendors before “supplies run out”, as well as keeps cloud costs as low as possible.

While many companies try to avoid outages and latency by distributing their compute in different availability zones, regions and even vendors, efforts should be made to keep tab of what capacity is really required in each area for maintaining operational standards. Otherwise, businesses can end up with resources and costs they really don’t need.

When the Music’s Over Turn Out the Lights…

During the holiday season there are going to be many On-Demand and even Spot instances that get spun up, along with EBS volumes and more. All these are great for managing the additional load, but once business returns to normal, these resources should all be brought down and ended.
Retailers and other businesses must use a system for keeping track of all their cloud activities so they don’t end up paying for volumes or instances that are unused, unattached or underutilized.

Check out Cloudyn’s Cyber Monday Special – Our Totally Free Reserved Instance Calculator!

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