Cloud Cost Optimisation: How We Cut Infrastructure Bills by 40%
Wasted cloud spend is one of the most common problems we see in growing businesses. Here is our systematic approach to cutting costs without sacrificing performance.
The Cloud Waste Problem
Gartner estimates that organisations waste 30-35% of their cloud spend. We routinely see this figure closer to 40-50% in fast-growing businesses that scaled without infrastructure discipline.
Where the Waste Lives
Right-Sizing
Over-provisioned instances account for the largest single source of waste. Most applications need far less compute than was originally provisioned "just in case."
Zombie Resources
Unused load balancers, orphaned snapshots, idle databases, forgotten test environments — these accumulate silently and drain budgets.
Storage Tiering
Hot storage for cold data is a classic waste vector. Data that is accessed less than once per month should never be on premium SSDs.
Licensing
Unused software licences, over-allocated database capacity, and redundant monitoring tools add up fast.
Our Optimisation Playbook
1. Audit — Complete inventory of all resources with cost attribution
2. Categorise — Active, idle, and zombie resources
3. Right-size — Downgrade over-provisioned instances with 30-day performance monitoring
4. Archive — Move cold data to appropriate storage tiers
5. Automate — Scheduled scaling, auto-shutdown for dev environments
6. Govern — Tagging policies, budget alerts, monthly reviews
Results
Across 12 enterprise clients in the past year, our average cost reduction has been 38%, with one client saving £180K annually after migrating from AWS to NxtGen with our optimisation framework applied.
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