Maximising Cost Efficiency with Cloud Interconnect Pricing

Written by The Abacus  »  Updated on: May 10th, 2024

Maximising Cost Efficiency with Cloud Interconnect Pricing

Cloud computing is gaining huge popularity in the present scenario, as it helps and empowers businesses to reach new heights. There are many services offered by cloud computing companies and among them cloud interconnection emerges as one of the top most choices.

What is cloud interconnect ?

Before understanding the concept of maximising the cost efficiency with cloud interconnect pricing, it is important to understand the cloud interconnect first. It is basically the service of establishing a secure, fast and reliable connection between on-premises infra and cloud service providers. The public internet is being bypassed by this direct connection, thereby ensuring lower latency, higher bandwidth, and enhanced security for data transfer.

Challenges of Cloud Interconnect Pricing:

Although there are many benefits of cloud interconnect, it is quite a challenging task to navigate the structure of its pricing. There are various pricing models like data transfer fees and network egress costs and because of these, businesses often suffer from unexpected expenses and budget overruns but if an appropriate approach is being followed, cloud interconnect cost could be optimised and businesses can get significant savings.

How to maximise cost efficiency with Cloud Interconnect Pricing?

There are many ways of optimising the cost with cloud interconnect pricing and these are mentioned below-

Choose the Right Pricing Model:

There are various pricing models which are being offered by cloud service providers for cloud interconnects like flat-rate price, metered price or committed use discounts. You need to check your usage patterns along with requirements of workload, as it will help you identify the pricing models which will align best with the needs of your business.

Leverage Committed Use Discounts:

Cloud service providers like The Abacus offer various discounts for a certain amount of bandwidth or data transfer volume for a particular time period. You can opt for such discounts, as these will help you in significant cost saving along with ensuring anticipated expenses of a month.

Optimising Data Transfer:

Besides this, you can optimise your network architecture and network management practices by minimising your data transfer between cloud and your on-premises infrastructure. For this, you can implement data compression techniques, caching mechanism and CDN, as this helps in the reduction of volumes of data transfer and lower costs.

Utilise Regional Peering:

You can also take advantage of your regional peering options which are being offered by cloud providers in order to establish a connection with the edge locations of the network. With the usage of regional peering, latency issues and egress costs which are related to transfer of data between different areas can also be reduced.

Monitor and Analyse Usage:

You need to monitor your cloud interconnect usage on a regular basis along with analysing the patterns of usage in order to check the opportunities for the purpose of optimisation. For this, you can take help of cloud monitoring tools and analytic platforms so that bandwidth utilisation can easily be tracked along with network traffic and cost trends. Tracking these helps you make better decisions to adjust your strategy accordingly.

Implement Traffic Engineering:

Besides this, there should be traffic engineering techniques in place such as route optimisation, traffic shaping and load balancing because these all help to route your traffic across your network and reduce the cloud interconnect pricing.

Overall, Cloud interconnect pricing is not a big deal, as if the right approach is taken, it becomes easier for businesses to maximise their cost efficiency along with leveraging the full potential of cloud connectivity. At The Abacus, we are always there to guide you at every step of your journey.

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