Optimising Cloud Costs: A Guide for SMEs

The Cloud Cost Paradox

Cloud computing was supposed to save money. And it can — when managed properly. But without governance, cloud bills can escalate quickly, often exceeding what on-premises infrastructure would have cost. The key is optimisation, not just migration.

Common Cost Traps

• Over-provisioning: Running larger VM sizes than your workloads require
• Zombie resources: Forgotten VMs, unattached disks, and unused IP addresses
• Lack of scheduling: Development environments running 24/7 when they're only used during business hours
• Egress charges: Unexpected data transfer costs between regions and services

Optimisation Strategies

Rightsizing

Analyse actual resource utilisation and downsize over-provisioned instances. Most workloads run at under 30% CPU utilisation — that's money on the table.

Reserved Instances & Savings Plans

For predictable workloads, committing to one or three-year reserved instances can save 30–60% compared to on-demand pricing.

Tagging & Cost Allocation

Implement a consistent tagging strategy to track costs by department, project, and environment. You can't optimise what you can't measure.

Let Denwen Manage Your Cloud

Our cloud management service includes continuous cost monitoring, automated rightsizing recommendations, and monthly cost optimisation reports. We typically reduce client cloud spend by 25–40% within the first quarter.