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How Companies Can Achieve Cloud Cost Optimization and Get the Most out of It – ReadWrite



How Companies Can Achieve Cloud Cost Optimization and Get the Most out of It - ReadWrite

Today, companies are actively using cloud technologies, as these technologies help to cut costs and attract profits. However, like any other resource, the cloud has nuances that you need to know to get the most out of it for your business. We will tell you how to achieve cloud cost optimization and what factors should be taken into account to maximize the benefits of working with the cloud.

How cloud technologies save companies money

Companies that operate in data centers spend about 75% of their budgets on equipment purchasing and upgrading, license updating, maintenance and support, and other similar procedures. For fast-growing businesses, new equipment can be too large, expensive, and inconvenient.

Let us say there are one hundred employees in your office who need access to a certain application, so you have to buy one hundred named user licenses. It will be necessary to acquire and deploy the entire hardware infrastructure for hundreds of users and train your IT staff to install, maintain, and troubleshoot the application.

Cloud saves on hardware and software

When using a cloud application, there is no need to buy any hardware or software. If staff expansion is expected in the future, purchasing a subscription for additional users is enough. Thus, the costs for cloud computing are fully aligned with the level of its use. The costs only include a monthly fee for architecture changes or setting up the cloud infrastructure when moving to the cloud. The costs for repairing or replacing equipment are shifted onto sellers.

Transition to cloud storage frees up space and reduces energy costs and equipment repair

Along with that, large data centers take up a considerable portion of the office space and generate a lot of heat. Transition to cloud storage frees up space and reduces energy costs. In addition, you don’t need to keep a large team for maintaining the cloud – any DevOps specialist can handle the job. If servers or other equipment need to be repaired, the cloud provider will solve the issue. Thus, the transition to the cloud reduces the cost for repairing equipment and keeping additional personnel.

Cloud computing has an impact on business profitability. Deployment of cloud-based software is way faster than an ordinary installation. For example, the German corporation Daimler AG has transferred its business system to the Azure cloud.

Thanks to this, the company was able to launch a large-scale project within 12 weeks instead of the 12 months that would’ve been required if working on the old model. As a result, hardware costs were reduced by 40%, and NPS (Net Promoter Score) management costs were reduced by 50%.

Another example that has transferred its infrastructure to the cloud is General Electric. This has made it possible to reduce the number of DPCs (Data at Point of Care) from 34 to 2, optimize data transfer up to 500,000 records per second, and save millions of dollars.

Most cloud storages are accessible over the Internet from anywhere, so employees can work both from the office and home.

By transferring workloads from on-premises to the cloud, enterprises release their staff from labor-intensive and time-consuming operations. Instead, engineers can focus on more valuable activities: develop applications, fix defects, explore innovations, and so on. Thus, moving to the cloud increases companies’ agility and accelerates technology adoption.

How to optimize ownership of cloud infrastructures

Here are ten steps you can take to get the most out of your transition to the cloud. How to reduce costs associated with cloud infrastructure

Step 1. Optimize the volume of cloud infrastructure from the start.

Before searching for a cloud provider, it is recommended to decide on the minimum performance criteria. At this stage, the most common mistake occurs – a company copies the performance parameters of its on-premises infrastructure and applies them in the cloud infrastructure.

Before migrating, you need to assess the functional capabilities of your business and accurately calculate workloads that are commensurate with their actual performance. For example, the right storage size, chosen according to your data type and usage, can reduce associated costs by up to 50%.

For example, AWS offers over 300 different types of instances, each suitable for certain workloads.

Choosing the best instance is challenging even for experienced cloud architects. If opting for the wrong instance family and the wrong size, instances of large size are created. As a result, developers deploy computing resources in the cloud, forget about them, and leave them dormant.

Step 2. Choose a provider and a suitable offer.

After deciding on the production capacity, it is necessary to choose an offer, the price, and the requirements of which work for you. For example, AWS has several pricing options – spot instances that allow you to request spare computing capacity at up to 90% off the on-demand price.

If you plan to expand and move to Paas or SaaS in the future, you can start with Microsoft Azure IaaS. According to Flexera, Amazon Web Services and Microsoft Azure were the most popular among corporate enterprises in 2020.

Step 3. Use long-term subscription.

Public cloud providers – whether Amazon, Azure, Google Cloud, or others – have a built-in mechanism reducing the cloud cost due to the long use of the resource.

For example, if you subscribe for a year, you can get a discount of up to 40%. If your subscription term is three or more years, you can reserve capacity with a discount of up to 75%. With the right workloads and auto-scaling, AWS customers have been able to save up to 36%.

Step 4. Change infrastructure design.

It is also recommended to optimize the infrastructure by replacing an unsuitable stack – for example, develop a serverless architecture built on additional functions of the application.

When a user needs to log into a page with a Google account, some function is triggered on the back-end at that moment. When the next person enters the application, the process repeats.

A recent survey by O’Reilly shows that 40% of organizations have accepted serverless architecture. This has allowed them to reduce costs, increase scalability and developer productivity, and improve other metrics.

Step 5. Use monitoring tools.

Customers often configure computing or storage instances the wrong way – without using auto-scaling or other monitoring tools. This is usually the case with development and test environments due to their temporary nature. Therefore, it is rational to reach out to a DevOps development company or hire a Cloud Architect.

Optimization helps to maintain control over a constantly increasing volume of data coming from different sources. It is necessary to efficiently distribute workloads between rotating drives and flash memory to improve information storage and control.

Step 6. Stay informed about new optimized cloud offers.

Cloud platforms like AWS constantly update service packages, offering technologies to optimize performance and reduce cloud costs. For example, to save money, a customer can replace their monitoring services with Amazon CloudWatch or their traditional computing instances with a serverless implementation.

When considering new technologies, the good idea is to focus on network solutions that provide maximum flexibility. In addition, it is important to identify which of the current investments will help minimize future costs and which of them will hinder the development and transformation of the business.

Step 7. Establish cost transparency.

An organization pays for the public cloud as and when it is used. For example, engineers regularly run virtual machines and containers, and data flows into and out of the cloud. Therefore, the monthly bill may either exceed the planned amount or not reach it.

The company doesn’t have to pay for unused software. Hence determining the lower and upper limits of the budget allocated for cloud expenses and monitoring them in real-time wouldn’t go amiss.

In addition, you can take an ax to pay-as-you-go software at any time if it doesn’t work for you. Cloud solutions provide fantastic flexibility for companies that need top-tier products but don’t have much money.

Step 8. Optimize software licensing costs.

Whether on-premises or cloud, software license fees take a significant portion of operating costs. Since they are difficult to manage in the cloud, organizations can end up paying for unused licenses. That’s why it is reasonable to use cloud services to estimate software costs to reveal unnecessary licenses and remove them from your expenses.

Step 9. Suspend unused services.

AWS offers tremendous cloud storage capabilities, including computing and storage resources. However, a company pays for them even when the services are out of action. Therefore, there is an opportunity to suspend services that are not being used to minimize costs for them.

Step 10. Automate Amazon EBS snapshot management with Data Lifecycle Manager.

Some clouds like AWS provide the possibility to automatically or manually take point-in-time snapshots of EBS volumes. The snapshots can be stored in S3 and run on another EBS volume in any region.

One of the cloud cost management tools is Amazon Data Lifecycle Manager (Amazon DLM) that automates the creation, storage, and deletion of Amazon EBS snapshots (Elastic Block Store). This approach eliminates the need for complex configurable scripts to manage EBS snapshots, saving time and money. In addition, the use of Amazon DLM is free in all AWS regions.

How to make the right cloud optimization decision

Not all companies make good use of computing and storage capabilities. When an organization moves its workloads and applications to the cloud, it needs experts specializing in access control, storage, networking, and monitoring.

  • Cloud reliability and accessibility – find out what service-level agreements (SLAs) the cloud provider offers and how they correlate with your internal SLAs;
  • DPC and quality of operations – compare the quality of cloud and on-premises data of the DPC; assess how the team is staffed and when operators are available;
  • Compatibility – consider how easily software can “make friends” with other applications;
  • Scalability – evaluate whether it is convenient to customize the application for the needs of your organization, taking into account future expansion;
  • Security and privacy – find out what security and privacy policies the cloud provider offers and how they correlate with your company’s policies;
  • Capacity – ensure that the cloud application makes it easier to manage processes, low performance, and infrastructure.

To calculate cloud costs and determine the level of optimization, you can use the TCO calculator. Similar services are available in AWS, Azure, and Google.

To make the necessary calculations, you only need to enter the project specifications: types of servers, configurations, number of virtual machines, etc. In such a way as you can get a quick comparison of cloud and on-premises systems.

To make the right decision on increasing or decreasing computing resources, applying stress testing is useful.

When a company operates from a data center, an increase in computing resources requires additional investments, while a decrease leads to sunk costs. Cloud infrastructure, in turn, is based on such an operating model where an organization pays only for what it uses.


Competition between industries is growing, so a company needs to understand how efficiently it uses its resources.

Budget estimation is a process that requires attention, as incorrect calculations reduce productivity and become an obstacle to improving business performance. Cloud cost optimization is not supposed to be complicated, but it does require a special approach.

If your company doesn’t possess such skills, it is reasonable to use dedicated tools – for example, cloud cost management software.

Image Credit: aleksandar pasaric; pexels; thank you!

Artsiom Balabanau

My name is Artsiom Balabanau, and I have ten years of experience in the IT industry building a path from a Business Innovation Consultant to a Senior Manager. Currently, I work as a CIO at Andersen. Being a part of the IT family for years, I aim at transforming IT processes in support of business transformation.


Low-Cost Business Ideas for 2022



Low-Cost Business Ideas for 2022

Successfully running your business in 2022 is not easy due to the new norms of people’s lives. The Covid-19 pandemic has changed the consumption of goods and services. If opening an offline store or restaurant just a few years ago was a profitable idea, now their owners can incur heavy losses.

Since most startups in 2022 are going online, you need to think about starting your business on the Internet. If you decide to become an entrepreneur and have the opportunity to invest, but there is no modern idea, you can take advantage of the options that someone is already successfully developing.

What Business is Popular in 2022

Thanks to the Internet, anyone can become a business owner. A startup on online platforms is an excellent idea for those who like flexible working hours and complete control over their income. This option of earning money is more resistant to crises and outbreaks of pandemics.

According to Statista, in 2021, online shopping exceeded $4.2 trillion globally, and social media has become the backbone of many businesses looking to build brand awareness.

Before preparing to launch for a startup, consider the following factors:

  1. Expertise. An entrepreneur needs to learn new skills and knowledge about a niche for any successful startup.
  2. Investments.If you don’t have enough money to invest a significant amount in a project immediately, think about how to raise capital for your business (investors, crowdfunding, business angels, grants, etc.).
  3. Scaling. To attract new customers and profit, the company needs to grow and develop constantly. Consider a long-term scaling plan and remember the hassles that can happen while you work.
  4. Personal interests. Consider whether you will still be passionate about the business in the long run.

The cost of starting a business decreases every year, which is especially important for an online business; to start, it is enough to have a computer with an Internet connection. The most challenging part when developing ideas is the problem of choice. To be successful, you need to deal with products in strong demand. A business should be run by a person who enjoys doing it.


Dropshipping is one of the profitable business ideas if you want to make money remotely online. Unlike a regular online store, you don’t need products to run an e-commerce site specializing in dropshipping. Conforming with Torchbankz, the dropshipping industry is expected to reach a market valuation of $557.9 billion before 2025.

This business is considered very affordable because to work, you only need to launch your website and access the directories of wholesale suppliers such as AliDropship or SaleHoo.

All you have to do is partner with wholesalers and manufacturers to sell their products under your brand name. The buyer purchases on your website, informs the supplier company about it and sends the order to the client. The dropshipping scheme for an online store is straightforward:

  1. The seller selects products from the supplier’s catalog and uploads them to the trading platform (online store, landing page, marketplace).
  2. Adds a markup to the supplier’s price.
  3. Promotes products and finds a client.
  4. When a client places an order, the seller communicates this information to the supplier.
  5. The supplier packs the product and sends it to the customer.

To quickly become a leader in this industry, you need to stand out from the competition. Instead of a thousand different products, you can narrow your niche and specialize exclusively in one category: clothes for children, home decorations, or more.

Food Delivery to Offices

Food delivery is not a new but trendy business idea. Fundera says that the online food delivery industry has generated more than $26.5 billion in 2021. While large companies set high prices for dishes, newcomers have a chance to gain customer loyalty at affordable prices.

Since there are a lot of office workers and not everyone can afford to go to a cafe for lunch, you will quickly gain a loyal audience and strengthen your position in the market.

An aspiring entrepreneur does not need a lot of investment. You can cook the food right at home and use your car to deliver orders. An important thing to invest in is a website or an application to tell about your services and present all the menus.

To minimize your costs, before launching a full-fledged software, you can use an MVP, with which you will test the main functions of the app and attract the first customers. Thus, potential buyers can see the available dishes and order them online without calls. They can choose a specific time for which you need to deliver food and even leave a particular comment on the order.

Also, your customers will pay for services using the app, saving you from cash. By allowing feedback on the service in the software, the delivery owner also receives feedback from the person and builds a loyal audience. Your own application will help you tell the world about yourself and take a leading position among those who do not use digital technologies yet.

Online Trading

Opening your own online store is the most obvious idea for an online business. The following online stores can be called relevant in 2022:

  • children’s goods;
  • ecological and natural versions of everyday products;
  • superfoods;
  • sporting goods;
  • clothing and footwear;
  • home textiles;
  • boxes with surprises.

This startup idea is not as simple as it seems at first glance, but it will not require significant investments at the initial stage with a competent approach.

First, you need to decide on your niche. Purchase several copies of each item to understand what will be more in demand and what is better to remove from the catalog altogether.

Next, you need to study your target audience. For example, selling home furnishings to teenagers is useless. The older generation is unlikely to be interested in fashionable gadgets, and residents of the city will not appreciate goods for the garden. The main characteristics of potential buyers are gender, age, place of residence, and financial situation.

The critical step is the selection of suppliers. To avoid getting caught by scammers, try to find out more information about them and look at the goods live.

Implement enterprise resource planning software to customize and automate the process straight away. ERP will integrate and manage finance, order supply chains, user operations, reporting, manufacturing, and human resources. With this software, you and your employees will be able to plan deliveries and improve the quality of customer service. The use of digital technologies in business will help increase productivity and store all data in secure cloud storage.

Why Digitize Your Business in 2022

Without developing a digital transformation strategy, no modern business in 2022 can exist in the long term. Due to the pandemic, everyone observes a rapid acceleration of trends that previously gained popularity very slowly. Such resources allow you to save money, increase profits, and attract new customers.

The required minimum for any company now is a website and accounts in social networks. Brands looking to take one step closer to their customers can also develop a mobile app/chatbot and use other promotion channels.

A more thorough digital transformation involves working with clients and deep business processes: production, personnel management, and internal communications. To implement such a transformation, you need to carry out serious work, which can be based on Big data analysis, cloud and mobile services, and agile development.

Before embedding digital technology in your business, think about what exactly you and your customers need. You should not chase trends and use that software that cannot help optimize processes and establish communication with customers.

Image Credit: Karolina Grabowska; Pexels; Thank you!

Elina Nazarova

Chief Marketing Officer of Powercode

Elina is accountable for digital strategy development and implementation. She is certified in business and startups development and has more than 5 years of experience in content writing and management. Her core belief is that well-designed digital transformation is able to lead any business to success.

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5 Ways To Grow Your Business With Technology



Brad Anderson

“I’d like my business to remain stagnant.” No entrepreneur, owner, or CEO ever uttered those words. You can be sure none ever will, either. That’s because corporate growth is always an overarching goal for any organization. Growing your business comes with its challenges, of course, like figuring out which steps will make it easiest for you to scale and expand.

One thing’s clear: You need to develop a clear-cut growth strategy. And technology needs to play a huge part in that strategy. After all, we’re living in a primarily technological world. If you’re not making the most of the tech at your fingertips, you regularly miss opportunities to strengthen your brand’s position.

Where can you start? Below are a handful of ways that you can leverage technology to grow your business’s footprint. Try these recommendations, whether you’re a micro startup or a mid-size corporation headed toward a Fortune 500 future.

1. Automate repetitive manual processes.

Is it worth automating all the mindless to-dos in your business in order to grow? Yes, especially if you do the numbers.

McKinsey research studied the ordinary tasks of several occupations. They concluded that around 33% of the tasks of six out of 10 jobs could be automated. For example, let’s say your company is modestly sized at 50 workers. If your staffers work a traditional 40-hour week, 30 of them are frittering away 13 hours. In other words, you’re losing nearly 400 hours weekly to pay employees to handle repetitive duties.

To be sure, not all tasks can be automated. However, you owe it to yourself to find ones that can. For example, is your finance department team processing payroll or inputting invoices by hand? Then, invest in software to remove the tedium—and reduce the chance of human error.

Check out your sales and services processes next. Do your salespeople or support agents have to cut and paste information? Are they forced to switch between two or more programs that don’t communicate? Look for ways to integrate those systems to free up everyone’s valuable time so they can concentrate on growth-based responsibilities.

2. Strive to make customer first impressions stickier with tech tools

Tons of articles highlight the importance of growing your business by retaining customers. It’s true that retention tends to be less expensive than acquisition. Nevertheless, you can’t hold onto your customers until you get them in the door. So put a premium on delivering impeccable first impressions that urge people to stick around.

The right type of technology can assist you in wowing your best leads via an unforgettable customer experience. Take first-time logins, for instance. Okta reports that asking a visitor to set up an account turns off 37% of prospects. So what can you do to overcome this friction point? First, you can rely on social logins to streamline the process. From the customer’s viewpoint, being able to login via already-existing Facebook, Google, or credentials is effortless. From your company’s viewpoint, you can begin marketing to yet another buyer or potential buyer.

A strong CRM can be equally beneficial to moving leads into and down your sales funnel. Once you’ve captured prospects’ data through a social sign-in, personalize future communications like emails, texts, and DMs. Only two years ago, McKinsey found that 80% of retail buyers valued the personal touch. So whether you’re in retail or not, strive for individualization to keep new buyers coming back.

3. Bring a virtual assistant to your team.

You may not have the funds to hire live customer service representatives 24/7. That’s okay. Chatbots can give your organization the ability to offer visitors self-service, even during non-business hours. And they can do it for a fraction of what you’d pay a live agent.

Not sure you’re ready to put your faith in a chatbot? A New York Times article explains that today’s AI-fueled chatbots are only getting smarter. They’re also gaining widespread acceptance, with chatbot growth poised to hit around 15% in 2022. One Gartner executive even predicts that a genuinely conversational AI chatbot program is just around the corner.

Already, some chatbots are inching toward humanlike responses. A University of Florida experiment found that about a third of people could not tell a chatbot from a real person. Consequently, there’s little harm in exploring the wide world of chatbots for your company. Your chatbot doesn’t have to be perfect to be appreciated by customers with questions who want fast answers.

4. Investigate tech solutions to tap into your data.

Tremendous amounts of data flow into your company. Yet it would be impossible for you and your team to make sense of it all. Does that mean you have to give up on finding a way to unearth your data’s insights? Not at all. You just need a tech-based data mining solution.

You have plenty of choices regarding software that can analyze data and find trends. First, though, determine where your data exists. Is it in your CRM? Or a legacy piece of software? Once you know where to find your data, you can search for highly-rated data mining systems.

Be aware that some data mining programs have been developed with specific industries in mind. These can include healthcare, finance, e-commerce, or manufacturing. It never hurts to see if something’s already been created for your sector.

5. Invest in a branded mobile app.

Mobile app use continues to rise. By 2025, one Forbes writer notes that the app market will approach $1 trillion. So why, then, doesn’t your brand have an app of its own?

This is the question a lot of business leaders are asking themselves. Offering customers the chance to interact with your company through an app makes sense. Not only does it give them an immediate connection to your organization, but it simplifies the purchasing process. At the same time, it helps buyers feel that they’re getting special treatment as you deploy push notifications and exclusive offers.

How can you make the most of your app once it’s been developed? First, make sure your customers know it exists. Lots of brands have apps that get very few downloads. The issue isn’t necessarily the app itself. It’s that they don’t know the app is available. Therefore, be diligent and consistent about talking up your app to drive higher usage and conversions.

You’re not alone if you feel that growing your business isn’t happening as fast as you like. Most leaders wish that they could get to the next plateau faster. One method to add a little speed to the process is to lean into the technologies you’re not using yet. Then, with the right combination of tech tools, you should begin to see a positive difference in your numbers.

Image Credit: Artem Podrez; Pexels; Thank you!

Brad Anderson

Editor In Chief at ReadWrite

Brad is the editor overseeing contributed content at He previously worked as an editor at PayPal and Crunchbase. You can reach him at brad at

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The Developer’s Guide to Mobile Authentication



Deepak Gupta

Mobile app developers must ensure that the mobile app is effortless while keeping internal information protected and secure. Complex or repeated authentications can be frustrating for your mobile app users.

This article discusses various means of simple and secure mobile authentication, ensuring frictionless UI and UX of mobile authentication screens and data security.

What is Mobile Authentication?

Mobile authentication is a security method to verify a user’s identity through mobile devices and mobile apps. It caters to one or more authentication methods to provide secure access to any particular app, resource, or service.

Let’s look at the various mobile authentication methods developers can utilize depending on their business use case.

Mobile Authentication Methods

Password-based Authentication

Email-Password and Username-Password are common types of password-based authentication. While utilizing these methods, developers should consider setting secure and robust password policies in their authentication mechanism, such as:

  • Mandatory use of symbols and numbers
  • Restricting the use of common passwords
  • Blocking the use of profile information in passwords

These measures ensure better quality passwords and prevent user accounts from brute force and dictionary password attacks.

Limitation: Passwords are hard to remember, and typing in passwords on a small mobile screen degrades the user experience. Hence, developers must use authentication that does not compromise the security postures yet provide an appropriate user experience.

Patterns and Digit-based Authentication

The user must set a pattern or a digit-based PIN (typically 4 or 6 digits). Developers can utilize this as an authentication factor for their mobile application, as this authentication method is faster and more comfortable than entering passwords on a mobile screen.

Limitation: Both patterns and 4 or 6 digits PINs are limited. Also, users tend to use simple patterns and PINs like L or S patterns and 1234, 987654, date of birth as their password.

OTP-based Login

Users use an OTP received via SMS or email to authenticate themself. Thus, users do not have to remember a password, pattern, or PIN to access their account. At the same time, developers don’t have to implement password-based security mechanisms.

Biometric Authentication

Biometric authentication uses unique biological traits of users for mobile authentication. Some common examples of biometric authentication are fingerprint scanning, face unlocks, retina scans, and vocal cadence.

Developers can implement pre-coded libraries and modules to enable authentication through mobile components like the finger scanner, camera (for facial recognition), and microphone (for voice-based identification).

Social Login

It acts as a single sign-on authentication mechanism. Developers can implement this in mobile apps to use users’ login tokens from other social networking sites to allow access to the app.

Also, with social login, developers don’t need to worry about storing passwords securely and managing the password recovery option. It helps the user sign in to the mobile app without creating a separate account from within the app, hence increasing the user experience (UX).

User Interface (UI) and User Experience (UX) in Mobile Authentication

Login and registration screens are a gateway to your mobile applications; if they are a hassle, the user might not bother using the application. Thus, developers should pay a lot of attention to these screens regarding user experience and usage.

Here are some quick tips for mobile authentication screens:

  • Simple Registration Process: Lengthy registration forms are a big no-no. Brainstorm essential information for creating an account via mobile application and only include those fields.
  • External or Social Login: Allow users to log in via external or social accounts. This way, users don’t have to remember another password or credentials for your app.
  • Facilitate Resetting: Include forget password on the login screen for good visibility and reach if the app provides password-based login. Also, setting the new password should be seamless and fast.
  • Keep Users Logged In: Not logging out users on app close is helpful in a good experience. However, this depends on the type of app you offer. Developers should include MFA for better security if the app stores sensitive information or skip the stay logged-in feature altogether.
  • Meaningful Error Messages: Errors and how they are handled directly impact user experience. Thus, developers should keep error messages meaningful and clearly state what went wrong and how to fix it.

Tip: Customize the mobile app keyboard for the type of input field. For example – display a numeric keyboard when asking for a PIN and include @ button when asking for an email address.


Considering the above points would result in a great and secure user experience for your mobile app users. However, if you feel executing these guidelines would take ample time, be informed that CIAM solutions are available in the market to handle all these requirements for you.

Deepak Gupta

Co-founder and CTO @LoginRadius

Founder and CTO @LoginRadius, Software Entrepreneur. I love to write about Cyber Security, AI, Blockchain, Infrastructure Architecture, Software Development, Cyberspace Vulnerabilities, Product Management, Consumer IAM, and Digital Identities.

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