In any economic scenario, finding strategies to reduce cloud computing costs is advantageous. But when the economy is struggling, it's a very wise move to make. The cause goes beyond the fact that during a recession, firms frequently have to make financial cuts in order to stay afloat. Additionally, businesses are in a better position to bargain for the best costs for cloud services when demand declines, as it does during recessions. And if they invest those savings, they can keep using them even after the economy has stabilized.

Therefore, the time is now to pursue cloud cost-optimization initiatives, whether you're concerned about cloud spending because you need to tighten the screws on your company to weather the current economic volatility or you're just looking to take opportunities to get even more significance from your cloud while paying less for it.

This is how it can be achieved :

Understanding your present cloud spending and how much it surpasses what you would spend if cost improvements were implemented is the first step in cloud cost optimization.

This is significant because both the amount that firms overspend on the cloud and the effect that their cloud expenses have on their overall business health can differ significantly. In a few instances, businesses may overspend by only 8% to 10%. While this is not ideal, it is typically not enough to seriously jeopardize the company's capacity to maintain its financial stability. However, it's common to see businesses overpay by as much as 30%. That sum does put a significant financial strain on the company and significantly curtails its capacity for innovation, particularly during economic downturns.

Workloads in the cloud are dynamic. Mission-critical elements might no longer exist. Alternatively, you might have invested in workload configurations that are no longer required because of changes in the workload requirements, like mirroring workloads across several cloud regions to boost reliability.

A recession is as good a time as any to assess cloud workloads and decide which ones should be considerably modified or retired in order to save money without sacrificing business objectives. In other words, take advantage of the current economic climate to "spring clean" your cloud as a first step toward cost optimization.

Workload restructuring helps reduce cloud expenses. The greatest chance for cost savings in the cloud, however, comes from negotiating special rates with cloud providers.

As was already mentioned, business owners have the best opportunity to bargain with cloud service providers for price breaks during economic downturns. Cloud vendors are more likely to provide deeper discounts when they are concerned about losing customers as businesses cut back on spending.

The opportunity that businesses have right now regarding cloud price savings is made even sweeter by the fact that the public cloud computing market has grown so competitive in recent years. The industry for cloud computing is no longer dominated by Amazon Web Services. According to the most recent Gartner data, AWS is losing market share to rivals like Google Cloud Platform, so it is more eager than ever to keep clients, even if it means decreasing its prices for big-time users of its services. In a similar vein, platforms like GCP are eager to win over new clients by offering price reductions in order to keep up their momentum in the cloud industry.

By the way, don't assume that just because you have a long-term enterprise deal with a cloud provider in place, you cannot request price breaks. Businesses can and frequently perform mid-term contract renegotiations with cloud service providers. Companies shouldn't be afraid to push cloud providers for better terms, especially now that the cloud industry is under more pressure than ever from the competition.

If there is a benefit to recessions, it is that they give firms chances to cut costs that are not available during boom times. Businesses could start taking advantage of the enormous opportunity to lower their cloud computing costs and, consequently, free up funding for other purposes by analyzing their cloud spending, reviewing their cloud workloads, and then contacting cloud vendors to negotiate better price conditions