How Scaling Strategies Slash Expenses by Over 50%

Today businesses must prioritize cost optimization on cloud platforms to streamline operations. Scaling strategies can be an effective way for businesses to manage growth while also keeping expenses in check.

Recent studies suggest that a typical organization wastes 30–35% of its public cloud spending due to inefficiency and waste. Proper optimization can eliminate this waste and enable more efficient budget use.

Vasyl M. , Co-founder and CTO at Reenbit, explains the effectiveness of scaling strategies on Azure and shows how well-planned approaches can result in substantial cost savings, cutting expenses by more than 50%.

Our successful collaboration with Glowi in optimizing work schedule management served as the cornerstone for our calculations.

Choosing Time Intervals for Scaling:

Understanding traffic patterns is pivotal for devising an effective scaling strategy. Utilizing Azure's analytics tools, we identified specific periods of decreased website traffic, such as evenings, weekends, and nights.

However, it's essential to note that traffic patterns may vary depending on factors like the nature of the project and the target audience. For instance, while a global website might experience consistent daily traffic, a localized service may witness significant dips during non-peak hours.

Determining Base Costs:

Before moving forward with a scaling strategy, it is critical to have a clear understanding of baseline costs.

Let's assume our base costs without scaling amount to $1,500 monthly.

Strategy:

Based on our analysis, we devised the following scaling strategy:

• Weekends: Implement scaling to optimize resources during weekends, resulting in approximately 26.67% savings (considering 8 weekends out of 30 days).
• Nights: Scale resources during nighttime hours, achieving savings of around 25% (assuming 6 hours out of 24 hours).
• Evenings: Optimize resources during the evening, leading to savings of about 12.5% (assuming 3 hours out of 24 hours).

Calculating Savings:

Using the scaling strategy outlined above, we can calculate the expected savings:

• Weekend savings: $1,500 * 26.67% = $400.05 per month.
• Night savings: $1,500 * 25% = $375 per month.
• Evening savings: $1,500 * 12.5% = $187.50 per month.
• Total savings per month: $400.05 + $375 + $187.50 = $962.55

Actual Savings:

While scaling doesn't necessarily reduce costs to zero, it does lead to substantial savings.

In our case study, after factoring in the lowest pricing tiers for scaled resources, the monthly expenditure amounts to approximately $155.

Actual savings with scaling: $962.55 - $155 = ~$800 per month.

Therefore, through the implementation of a meticulously planned scaling strategy, we attain a notable reduction in expenses, saving over 50% on the monthly invoice.

Conclusion:

Efficient utilization of scaling strategies on Azure is instrumental in optimizing costs, allowing businesses to allocate resources judiciously while maintaining service quality.

The successful implementation of a digital solution and Azure scaling enabled Glowi to overcome scheduling challenges, improve efficiency, and achieve significant cost savings.

If you need assistance from a Reenbit team experienced in this process, Tell Us About Your Challenge!