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Optimizing Cloud Spend in the Public Sector: A Strategic Approach

In the era of digital transformation within public sector entities, cloud adoption continues to be the preferred method of IT modernization. While the benefits of cloud services are clear, the challenge lies in optimizing spend to ensure fiscal responsibility and efficient resource allocation. This post explores strategic methodologies specifically tailored for the public sector to optimize their cloud expenditures. In doing so, we aim to empower agencies to not only harness the transformative power of the cloud but also ensure that every allocated resource is utilized judiciously in the pursuit of enhanced public services.

Conducting a Comprehensive Cost Assessment:

Begin by conducting a thorough analysis of current cloud expenses. Identify unused or underutilized resources and evaluate the cost-effectiveness of existing service plans. This assessment serves as the foundation for developing a targeted optimization strategy.

Embracing Reserved Instances:

For predictable workloads, consider leveraging reserved instances to benefit from substantial cost savings. By committing to a one or three-year term, public sector agencies can enjoy discounted rates compared to pay-as-you-go pricing models.

Right-sizing Resources:

Avoid overprovisioning by right-sizing your cloud resources. Regularly assess the actual needs of your applications and services and adjust resource allocations accordingly. This not only reduces costs but also enhances overall system efficiency.

Leverage an External FinOps Program

At Strategic Communications we have created our own AWS Cost Optimization Program. We have worked to build the most robust, yet simplified AWS FinOps program on the market today.

We have built our FinOps solution on top of the cost optimization framework discussed in this article, but have taken the extra step to simplify the cost optimization process, while also reducing potential risk. For example, when purchasing traditional Reserved Instances agencies are locked into a 1-3 year commitment, through Strategic’s FinOps program public sector agencies can receive the same cost-saving benefits of RIs, but can exit anytime with 60 days notice. Not only that but agencies using Strategic’s FinOps service have seen a 20%-30% total savings compared to traditional Reserved Instances.

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