How to Achieve Cost Optimisation through Managed Cloud Services?

February 2, 2024 / Cloud Hosting

In the push for digital transformation, the adoption of cloud services has become ever more important for small to medium-sized businesses (SMBs), startups and entrepreneurs. However, as the cloud evolves, harnessing its full potential increasingly depends on being able to optimise costs. In this post, we examine how cost optimisation can be achieved through managed cloud services.

Understanding managed cloud services

Managed cloud services are a key partnership that enables businesses to put their cloud operations, including infrastructure, applications and security, in the hands of their service provider. As a result, the relationship allows companies to focus on their core objectives and frees them from the burden of managing complex cloud environments.

Managed cloud services also play a key role in cost optimisation. The services offered by a vendor, for instance, provide businesses with access to on-demand expertise. With the service provider’s highly skilled teams delivering efficient cloud infrastructure operations, businesses can use their in-house specialists on more valuable projects, thus reducing staffing costs and related expenses, such as training and development.

What’s more, managed services providers offer resource scaling, enabling companies to scale up or down in line with demand. As a result, businesses do not waste budgets on underutilised resources and only pay for those they use, keeping costs to a minimum.

Another financial benefit of managed cloud services comes from its emphasis on preventive maintenance and continuous monitoring. This minimises the risk of downtime and security breaches, and the losses they can result in. Today, service providers make use of sophisticated tools and procedures to continuously monitor systems so that they can proactively identify and fix issues before they escalate into serious problems.

For more information, read: IaaS, PaaS, SaaS – Cloud Computing Services

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Identifying cost optimisation opportunities

Cost optimisation begins with identifying the various opportunities for cost savings. This requires a comprehensive review of a company’s existing cloud usage and expenses so that any underutilised or unnecessarily expensive services or resources can be highlighted. The best way to achieve this is to take a data-driven approach, using analytics tools to gain insights into usage patterns. This will help companies identify inefficiencies and have a clearer understanding of their cloud spending.

Following this, the next stage of the process is to align cloud resources with business goals. This is important for ensuring that every penny a company spends on the cloud is used to achieve business growth. Doing this requires a clear understanding of the company’s short-term and long-term objectives and knowledge of how cloud services can be used to support them. This way, companies can ensure that their cloud infrastructure delivers the outcomes they need while being robust, secure and cost-effective.

As the cloud is continually evolving, new advancements and cost-saving opportunities regularly come to light. Businesses, therefore, need to be agile and ready to adapt their cloud strategies in line with changing market trends, technological advancements and shifting business priorities. This will make it easier for them to continue optimising costs in the future.

Choosing the right cloud service model

Choosing the right cloud service model is a vital decision that can directly affect the operational efficiency and cost-effectiveness of a business’s cloud strategy. There are three main models: Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS) – each offering different features and benefits.

IaaS enables businesses to manage their servers, storage and networking hardware in the cloud without the need for physical maintenance. It can be particularly cost-effective for companies with fluctuating demands, as it allows them to scale resources up or down depending on need. As a result, businesses only pay for what they use.

PaaS is a step up from IaaS as it provides both the infrastructure and the platform on which applications can be developed and deployed. This model reduces the need for in-house management of hardware and software, thus allowing developers to focus on building software without having to worry about operating systems, software updates, storage or infrastructure. PaaS is particularly cost-effective for rapid development environments and for businesses looking to establish development capabilities with a minimal investment in tools and platforms.

SaaS, meanwhile, provides companies with fully functional applications that users can access over the internet, for example, Microsoft 365, Adobe Creative Cloud and Salesforce Sales Cloud. These services remove the need for businesses to install, manage and run applications on their individual computers or in their data centres, while providing quick, easy and affordable solutions paid for on a subscription basis. They frequently come with excellent customer support and fully managed services.

When choosing the most suitable model, there are several factors that companies should consider. These include their specific business needs and objectives, the level of control and flexibility they require, the technical expertise of their IT team, and the costs associated with each model. Additionally, they should also ensure their preferred solution can expand and adapt as their business grows.

Implementing cloud automation

Automation can be used in various areas of cloud management, such as resource deployment, performance monitoring and security compliance. From a cost perspective, its use can increase efficiency by minimising human intervention, reducing the potential for human error and ensuring that resources are accurately allocated to meet real-time needs. Examples of where it improves efficiency include the automated scaling of resources to ensure optimal performance without overprovisioning; automated backup and recovery; and automated security processes, like security scans and patch management.

Another area where automation offers significant benefits is cost management. Through automated tracking and analytics, businesses can gain real-time insights into their spending patterns, and this helps them to identify wasteful expenditure. At the same time, automated policies can also be set to decommission any unused resources to avoid unnecessary costs.

Monitoring and scaling strategies

Real-time monitoring is integral to effective cost cloud management as it provides businesses with an immediate, detailed view of their cloud resource usage, performance and security threats. With this level of oversight, companies can ensure that resources are being utilised efficiently and can address potential issues before they become costly problems.

Efficient resource scaling is also important for managing cloud costs and meeting fluctuating demands. By implementing auto-scaling policies, companies can automatically adjust the number and size of their resources based on predefined rules and real-time demand. This not only optimises costs but also frees up IT teams who no longer need to carry out manual scaling tasks. A more cost-effective use of resources can also be achieved through load balancing, where workloads are distributed evenly across resources, ensuring that no individual resource is overburdened while others remain unused.

Finally, by adopting a microservices architecture, companies are given more granular control over scaling and cost management. Breaking down applications into smaller, independently scalable services enables businesses to scale specific functions of an application rather than the entire application itself, resulting in more precise resource usage and improved cost efficiency.


Managed cloud services offer numerous opportunities for cost optimisation. To take advantage, however, businesses need to select the right service models, implement real-time monitoring and make effective use of automation and scalable resources. Combined, these provide companies with a framework for an agile, robust and cost-efficient cloud infrastructure.

Looking for cost-effective managed cloud services? For cloud hosting that supports your optimisation efforts, take a look at our Cloud Hosting Services. Have questions or need assistance? Feel free to reach out. Let’s optimise your cloud costs together!


  • Niraj Chhajed

    I'm a SEO and SMM Specialist with a passion for sharing insights on website hosting, development, and technology to help businesses thrive online.

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