Resource Cost Management

In Cost Management, Elimination >> Optimization. It is not about the obvious idle resources—those are picked for cleanup by the cloud teams. The bigger wins often hide inside “active” systems we assume must stay. Some thought starters: 🔹 Ephemeral environments Stop parking dev / QA stacks overnight. If you have Terraform or Helm, destroy at 8 p.m., recreate at 9 a.m.—zero drift, zero off-hour spend. Even better, destroy at 8 p.m, and let teams "create" when needed. 🔹 Storage & databases Auto-purge stale tables, snapshots, and unused indexes before you resize volumes. Database indexes and unnecessary metadata are often underestimated. They are a double whammy - slow your queries (and so increase cost); plus increased storage costs. 🔹 AWS Config & similar services Is anyone using them? Disable them if they are not. 🔹 Log retention Constantly check your logs - verbosity and retention. They pile up fast. 🔹 NAT Gateways Replace heavy egress with VPC Endpoints for S3/DynamoDB, or consolidate traffic to one AZ. Many teams pay large NAT bills. 👉 Rule of thumb: Before you spend hours rightsizing or buying Savings Plans, ask one question: Does this resource—even when “in use”—need to exist in its current form? If the answer is “probably not,” eliminate or redesign first. Optimization is for what remains.

🚀 Understanding the Core of Cost Management: Cost Cutting, Cost Improvements, and Cost-Out. : : Cost management is a critical aspect of business success. While the terms "cost cutting," "cost improvement," and "cost-out" are often used interchangeably, each has its own unique approach and purpose. Here’s a breakdown:   #1️ Cost Cutting: Definition: A reactive measure aimed at reducing expenses to address financial pressures or improve short-term profitability. Characteristics: --> May include layoffs, reducing overhead, eliminating non-essential expenses, or downsizing operations. --> Can negatively affect employee morale and operations if not handled carefully. Tools: -> Zero-Based Budgeting -> Activity-Based Costing (ABC) -> Supplier Negotiations -> Operational Audits Focus: Primarily on reducing current expenditures without necessarily improving processes or efficiencies. #2️ Cost Improvements: Definition: A proactive approach focuses on enhancing operational efficiency and effectiveness to reduce costs over time without sacrificing quality or value. Characteristics: --> Long-term, sustainable strategies like process reengineering and employee training. --> Aims to improve productivity while maintaining or enhancing quality. Tools: -> Value Analysis/Value Engineering (VA/VE) -> Lean Manufacturing -> Six Sigma -> Employee Training Programs Focus: Continuous improvement and value addition. #3 Cost-Out Programs: Definition: Structured initiatives aimed at systematically identifying and eliminating unnecessary costs. Characteristics: --> Data-driven, detailed planning across departments or product lines. --> May include renegotiating supplier contracts and strategic partnerships. Tools: -> Should Costing -> Benchmarking -> Total Cost of Ownership (TCO) -> Supplier Consolidation Focus: Strategic cost elimination for long-term gains. Key Takeaways: 🔹 Cost cutting addresses immediate financial concerns but may lack sustainability. 🔹 Cost Improvements focus on operational enhancements, ensuring quality and long-term efficiency. 🔹 Cost-Out Programs leverage advanced tools to systematically eliminate unnecessary expenses. Each approach plays a vital role based on the organization's current challenges and goals. By aligning the right strategy with business objectives, organization can drive significant financial performance and create a robust foundation for growth. 💡 Which approach resonates most with your organization’s needs? Let’s discuss in the comments! 👇

Unlocking the Secrets of Cloud Costs: Small Tweaks, Big Savings! Three fundamental drivers of cost: compute, storage, and outbound data transfer. 𝐂𝐨𝐬𝐭 𝐎𝐩𝐬 refer to the strategies and practices for managing, monitoring, and optimizing costs associated with running workloads and hosting applications on provider’s infrastructure. 𝐖𝐚𝐲𝐬 𝐭𝐨 𝐌𝐢𝐧𝐢𝐦𝐢𝐳𝐞 𝐂𝐥𝐨𝐮𝐝 𝐇𝐨𝐬𝐭𝐢𝐧𝐠 𝐂𝐨𝐬𝐭𝐬: 💡𝐑𝐢𝐠𝐡𝐭-𝐒𝐢𝐳𝐢𝐧𝐠 𝐑𝐞𝐬𝐨𝐮𝐫𝐜𝐞𝐬: 📌 Ensure you're using the right instance type and size. Cloud providers offer tools like Compute Optimizer to recommend the right instance size. 📌 Implement auto-scaling to automatically adjust your compute resources based on demand, ensuring you're only paying for the resources you need at any given time. 💡𝐔𝐬𝐞 𝐒𝐞𝐫𝐯𝐞𝐫𝐥𝐞𝐬𝐬 𝐀𝐫𝐜𝐡𝐢𝐭𝐞𝐜𝐭𝐮𝐫𝐞𝐬: 📌 Serverless solutions like AWS Lambda, Azure Functions, or Google Cloud Functions allow you to pay only for the execution time of your code, rather than paying for idle resources. 📌 Serverless APIs combined with functions can help minimize the need for expensive always-on infrastructure. 💡𝐔𝐭𝐢𝐥𝐢𝐳𝐞 𝐌𝐚𝐧𝐚𝐠𝐞𝐝 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬: 📌 If you're running containerized applications, services like AWS Fargate, Azure Container Instances, or Google Cloud Run abstract away the management of servers and allow you to pay for the exact resources your containers use. 📌 Use managed services like Amazon RDS, Azure SQL Database, or Google Cloud SQL to lower costs and reduce database management overhead. 💡𝐒𝐭𝐨𝐫𝐚𝐠𝐞 𝐂𝐨𝐬𝐭 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧: 📌 Use the appropriate storage tiers (Standard, Infrequent Access, Glacier, etc.) based on access patterns. For infrequently accessed data, consider cheaper options to save costs. 📌 Implement lifecycle policies to transition data to more cost-effective storage as it ages. 💡𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐞 𝐂𝐨𝐧𝐭𝐞𝐧𝐭 𝐃𝐞𝐥𝐢𝐯𝐞𝐫𝐲 𝐍𝐞𝐭𝐰𝐨𝐫𝐤𝐬 (𝐂𝐃𝐍𝐬): Using CDNs like Amazon CloudFront, Azure CDN, or Google Cloud CDN can reduce the load on your backend infrastructure and minimize data transfer costs by caching content closer to users. 💡𝐌𝐨𝐧𝐢𝐭𝐨𝐫𝐢𝐧𝐠 𝐚𝐧𝐝 𝐀𝐥𝐞𝐫𝐭𝐬: Set up monitoring tools such as CloudWatch, Azure Monitor etc. to track resource usage and set up alerts when thresholds are exceeded. This can help you avoid unnecessary expenditures on over-provisioned resources. 💡𝐑𝐞𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐌𝐮𝐥𝐭𝐢-𝐑𝐞𝐠𝐢𝐨𝐧 𝐃𝐞𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭𝐬: Deploying applications across multiple regions increases data transfer costs. Evaluate if global deployment is necessary or if regional deployments will suffice, which can help save costs. 💡𝐓𝐚𝐤𝐞 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞 𝐨𝐟 𝐅𝐫𝐞𝐞 𝐓𝐢𝐞𝐫𝐬: Most cloud providers offer free-tier services for limited use. Amazon EC2, Azure Virtual Machines, and Google Compute Engine offer limited free usage each month. This is ideal for testing or running lightweight applications. #cloud #cloudproviders #cloudmanagement #costops #tech #costsavings

How to Reduce Costs Effectively by Optimizing Resources (5M) and Other Methods In today’s competitive business environment, cost optimization is critical for sustainability and growth. At Akij Resource, we’ve been exploring ways to enhance efficiency and reduce unnecessary expenditures without compromising on quality or productivity. Here are some actionable insights: 1. Optimize the 5Ms The 5Ms—Man, Machine, Material, Method, and Money—are key resources for any operation. Here’s how to streamline them: • Man (Human Resources): Invest in upskilling and cross-training employees to perform multiple roles. This reduces dependency on a larger workforce while keeping morale high. • Machine: Maintain and upgrade equipment to avoid downtime and costly repairs. Use predictive maintenance and energy-efficient tools to cut costs. • Material: Minimize wastage through better inventory management and adopting a “just-in-time” approach. Consider recycling and sourcing sustainable materials. • Method: Simplify processes by adopting lean practices. Eliminate redundancies and focus on automation where feasible. • Money: Audit expenses regularly to identify unnecessary costs. Renegotiate with vendors and suppliers for better terms. 2. Embrace Digital Transformation Adopting digital tools such as ERP systems, business process management (BPM) software, or AI-powered analytics can help identify inefficiencies and optimize resource utilization. 3. Outsource and Collaborate For non-core functions, outsourcing can provide cost advantages. Collaborating with partners can also open opportunities for shared resources and infrastructure. 4. Leverage Data Use analytics to track performance, predict trends, and identify bottlenecks. For example, by analyzing production cycles, you can optimize energy use and reduce costs during peak periods. 5. Adopt Green Practices Energy-efficient lighting, renewable energy sources, and waste reduction initiatives not only lower costs but also enhance brand reputation. 6. Incentivize Cost Awareness Encourage employees to identify areas for cost savings by rewarding innovative ideas. Create a culture where every team member is mindful of operational efficiency. Reducing costs isn’t about cutting corners—it’s about smart allocation and optimization of resources. By focusing on the 5Ms and leveraging technology and collaboration, businesses can ensure long-term sustainability and profitability. What cost optimization strategies have worked best for your organization? Let’s discuss in the comments!

General idea : 💡 Integration of Project Management and Cost Control : Project Planning must include accurate cost estimates and a feasible budget. Monitoring & Controlling integrates performance and cost metrics. Scope and schedule changes can directly impact cost; hence, change management is critical. Project Management Overview : Project Management is the process of leading the work of a team to achieve specific goals and meet success criteria within a defined timeframe. Key Components: Initiation – Defining the project at a broad level. Planning – Establishing the scope, timeline, cost, quality, and communication plans. Execution – Implementing the project plan and managing teams. Monitoring and Controlling – Tracking progress, managing changes, and ensuring goals are met. Closing – Finalizing all activities, closing contracts, and assessing performance. Key Areas (as per PMBOK Guide): Scope Management Time Management Cost Management Quality Management Risk Management Human Resource Management Communication Management Procurement Management Stakeholder Management Cost Control Overview : Cost Control in project management involves managing and regulating the project budget to ensure that the project is completed within the approved budget. Key Objectives: Avoid cost overruns Ensure funds are used efficiently Align costs with project scope and timeline Key Steps in Cost Control: Cost Estimating – Predicting the costs of resources and activities. Budgeting – Aggregating estimated costs to establish a baseline. Cost Monitoring – Tracking actual costs against the baseline. Variance Analysis – Comparing planned vs. actual costs (e.g., using Earned Value Management). Corrective Actions – Taking action if deviations occur (e.g., rescheduling, scope adjustments). Tools : Earned Value Management (EVM) Cost Performance Index (CPI) Budget Forecasting Change Control Systems Software Tools (e.g., MS Project, Primavera, Excel)

In today’s data and AI projects, managing costs effectively is crucial for long-term sustainability and scalability. Chief Data Officers are increasingly focusing on strategies to control expenses while maintaining efficient infrastructure and analytics. Here’s how they’re making it work: 1. Leverage Cloud Flexibility Cloud infrastructure allows organizations to scale resources up or down based on project demands. Pay-as-you-go models provide more control over expenses, especially for fluctuating workloads. Cloud-native tools also minimize the overhead of managing infrastructure, freeing up budget for innovation and growth. 2. Automate Resource Management Automation is key for streamlining resource usage and reducing manual effort. Automating tasks such as workload balancing, data integration, and real-time monitoring helps keep costs in check. Cloud providers’ built-in cost management tools further enhance visibility and control over spending. 3. Optimize Data Storage and Processing Smart resource allocation is vital. By using cost-effective storage for less critical data and reserving premium resources for high-value information, organizations can optimize budgets without sacrificing access to essential data. 4. Enhance Team Efficiency Clear workflows and effective project management prevent resource waste. Cross-functional collaboration and well-defined guidelines for resource use align teams on cost management, preventing unnecessary spending and optimizing overall efficiency.

🧹💻 Tips for Cleaning Up & De-provisioning Unused AWS Cloud Resources Efficient resource management is key to cost savings. Here's how you can tidy up and de-provision unused cloud resources in AWS. 🕵️♂️ Audit Your Cloud Environment: Regularly use AWS Cost Explorer to review and identify unused or underutilized EC2 instances, EBS volumes, and other services. ⚙️ Implement Auto-Scaling: Set up AWS Auto Scaling to automatically adjust resources based on demand, helping you avoid over-provisioning. 🚨 Set Up Alerts & Metrics: Utilize Amazon CloudWatch to monitor cloud usage and set alerts for unusual activity or spikes. 🏷️ Use Tagging for Organization: Implement AWS Resource Tagging to categorize and track your resources for more efficient management and cost allocation. 🌙 Schedule Off-Hours Shutdown: Use AWS Instance Scheduler to shut down non-critical resources during off-hours. 🗄️ Optimize Storage: Clean up old snapshots and unused volumes with AWS Snapshot Lifecycle Policies. Optimize storage tiers with Amazon S3 Lifecycle policies. 🚀 Embrace Serverless Architectures: Consider using AWS Lambda for serverless architectures to pay only for the compute time you consume. 💸 Cloud-Native Cost Management Tools: Employ AWS Trusted Advisor for recommendations on where you can cut costs by eliminating waste. Effective cloud resource management not only helps in cutting costs but also boosts operational efficiency. Regular clean-ups and strategic de-provisioning are essential steps in a cost-effective cloud journey. Stay tuned for more cloud insights. Share your experiences or tips in the comments and follow me for more updates! #AWSTips #CloudCostManagement #ResourceOptimization #CloudComputing #DevOps #TechSavings

10 tactics to control costs A guide which provides you the tools for cost reduction When I was head of finance, we were facing a challenge: → How to reduce our hourly rate to stay competitive This became my number one priority to help the business And we succeeded to decrease our hourly rate by 3% while inflation was up! Today I am sharing the tactics to reduce costs: 1. Budgeting and Forecasting: • Importance: Plan and estimate costs, revenue, and expenses. This is where you can get your team to commit on cost reduction. • Focus: Use accurate data and update budgets regularly. 2. Variance Analysis: • Importance: Compare actual performance with budgets to identify deviations. If you found a variation, there is a big chance that you have a topic to explore to reduce costs. • Focus: Investigate significant variances for improved accuracy. 3. Cost Allocation: • Importance: Distribute indirect costs for accurate pricing and control. • Focus: Maintain fair and updated allocation methods. 4. Activity-Based Costing: • Importance: Assign costs to specific activities for better resource allocation. • Focus: Identify and measure cost-driving activities accurately. 5. Zero-Based Budgeting: • Importance: Justify every expense to optimize resource allocation. • Focus: Balance rigor with operational continuity. 6. Cost-Benefit Analysis: • Importance: Compare project costs with expected benefits. • Focus: Consider tangible and intangible factors. 7. Cost-Volume-Profit Analysis: • Importance: Understand how sales, costs, and pricing impact profitability. • Focus: Validate fixed and variable cost assumptions. 8. Inventory Management: • Importance: Optimize inventory levels to reduce costs. • Focus: Use EOQ and JIT techniques for efficiency. 9. Vendor Management: • Importance: Evaluate and maintain supplier relationships. • Focus: Assess performance and diversify suppliers. 10. Procurement Management: • Importance: Acquire goods at the best cost with quality. • Focus: Establish clear procurement processes and collaboration. 👉 What is your favorite method to find cost reductions?

You priced one shift. The cherry picker stayed all week. £4,300 gone. No one noticed. Poor resource tracking doesn’t explode your job. It quietly bleeds it dry. Plant sits idle. Labour goes unlogged. Materials move twice. And suddenly, the margin you priced is nowhere to be found. In my latest article, I unpack why this keeps happening, what it's really costing you, and how to fix it without drowning in admin. If you manage costs, you need to read this...