Impact of Cloud Optimization on Business Performance

Cloud computing infrastructure costs represent a significant portion of expenditure for many tech companies, making it crucial to optimize efficiency to enhance the bottom line. This blog, written by the Data Team from HelloFresh, shares their journey toward optimizing their cloud computing services through a data-driven approach. The journey can be broken down into the following steps: -- Problem Identification: The team noticed a significant cost disparity, with one cluster incurring more than five times the expenses compared to the second-largest cost contributor. This discrepancy raised concerns about cost efficiency. -- In-Depth Analysis: The team delved deeper and pinpointed a specific service in Grafana (an operational dashboard) as the primary culprit. This service required frequent refreshes around the clock to support operational needs. Upon closer inspection, it became apparent that most of these queries were relatively small in size. -- Proposed Resolution: Recognizing the need to strike a balance between reducing warehouse size and minimizing the impact on business operations, the team developed a testing package in Python to simulate real-world scenarios to evaluate the business impact of varying warehouse sizes -- Outcome: Ultimately, insights suggested a clear action: downsizing the warehouse from "medium" to "small." This led to a 30% reduction in costs for the outlier warehouse, with minimal disruption to business operations. Quick Takeaway: In today's business landscape, decision-making often involves trade-offs.  By embracing a data-driven approach, organizations can navigate these trade-offs with greater efficiency and efficacy, ultimately fostering improved business outcomes. #analytics #insights #datadriven #decisionmaking #datascience #infrastructure #optimization https://lnkd.in/gubswv8k

Duolingo was sitting on a cloud cost ticking time bomb 💣. Here’s how they defused it. 1️⃣ 2.1 Billion Unnecessary API Calls! That’s right—BILLION. Features like stories, adventures, and DuoRadio scaled fast, but without efficient caching, service-to-service traffic spiraled out of control. ✔️ Duolingo’s Fix: Optimized caching mechanisms, slashing API calls by 60% and reclaiming performance. 2️⃣ Legacy Systems Wasting Resources Outdated clusters, unused databases, and redundant microservices added bloat. ✔️ Duolingo’s Fix: Decommissioned everything unnecessary, reallocating resources to high-priority workloads. 3️⃣ Staging Environments Costlier than Production An overlooked test configuration meant staging was draining more than it should. ✔️ Duolingo’s Fix: Enabled full cost visibility with CloudZero, identifying and resolving inefficiencies. 4️⃣ Overprovisioning Due to Poor Defaults Memory utilization was hovering way below optimal. ✔️ Duolingo’s Fix: Fine-tuned configurations for 90-95% memory use and migrated key databases to Aurora I/O-optimized instances. 💡 The Results? ✅ Service-to-service traffic dropped by 60%. ✅ Cloud costs shrank by 20% within months. ✅ Hundreds of thousands saved annually—on a single service! What’s the takeaway? Cloud optimization isn’t just about cost-cutting; it’s about building visibility, cleaning up tech debt, and maximizing efficiency. What’s your biggest win (or hurdle) in managing cloud costs? Let’s talk in the comments. P.S. Share this with your network so they can optimize smarter, too. ♻️ #duolingo #CloudOptimization #CostSavings #Scalability #Simform

I had the opportunity to chat with Jason DiDomenico, MBA, Director of FinOps at Discover Financial Services. He shared valuable insights on how automation, waste management, and a focus on business value can transform cloud financial operations. His key takeaway? Successful optimization isn’t just about cutting costs—it's about driving long-term value for both the business and its customers. Here’s his approach: 🛠️ Categorize & Automate Waste Cleanup – Streamline cloud cost management through smart automation. 💡 Optimize for Value, Not Just Savings – True FinOps success means maximizing business impact, not just reducing expenses. 📊 Data-Driven Decisions – Use data to make better decisions that lead to sustainable, impactful results. 🌱 Efficiency Meets Sustainability – How FinOps contributes to a more eco-friendly cloud environment. 🔄 Stay Long-Term Focused – Align short-term actions with long-term business goals. If you're in cloud financial operations or looking to optimize your cloud cost management strategy, Jason’s insights offer a great blueprint for driving both efficiency and business value. His advice: Don’t wait for the “perfect moment” to start optimizing—take action now and keep refining your approach. If you’re in FinOps, cloud financial management, or simply want to learn more about driving efficiencies in the cloud, this episode is packed with actionable insights you can apply today. 🔗 Link to the full episode in the first comment! FinOps in Action is brought to you by PointFive, which empowers teams to optimize cloud costs with advanced detection and remediation tools that drive action. #FinOps #CloudFinancialManagement #CloudOptimization #DataVisibility #Collaboration #CostManagement #TechLeadership #CloudNative #CloudEngineering #Finance #Technology #CloudComputing #Leadership #BusinessGrowth