How To Reduce Startup Hosting Bill Using Cloud Computing

How can a startup reduce its hosting bill using cloud computing?

hosting bill

What is cloud computing?

Cloud computing simplifies the way a developer can access servers, databases, storage, and a wide range of app services over the internet. Nowadays, cloud computing is considered a standard for application development. Cloud computing makes it easy to configure and scale servers, saves time and allows creation of an application without a system administrator. It is essential, especially for startups who always have a lack of human resources.

Different cloud vendors offer different types of cloud services, which are differentiated based on the level of automation, usually defined as IaaS and PaaS.

Types of cloud services

Infrastructure-as-a-Service (IaaS) is the most basic type of cloud computing services. It allows you to rent IT infrastructure from a cloud provider – servers and VMs, OS, storage, and networks.
Platform-as-a-Service (PaaS) is created to make developers’ lives easier. With PaaS, you can create applications at lightning speed. An intuitive dashboard will help to manage all settings easily and simply change configurations if needed.

How will vendors charge you?

No matter whether you choose IaaS or PaaS services to host your application you will ask yourself a question: how many resources do you actually need monthly for your business to run. If you have a growing or seasonal business your resource consumption will not be the same every month. This is a problem, you don’t have any other option than to pay for unused resources.

Normally, hosting companies charge you for VM machine size. For example, on AWS you can choose a wide range of VM sizes, production configurations start from 2 vCPU and 3.75 GB memory. In many cases, you can’t predict how many resources you will consume. If your consumption exceeds the number of the purchased resources – you will lose your customers. If you buy a bigger machine you face the risk of overpaying for unused resources. Other cloud providers like DigitalOcean, Azure and Google Cloud have the same pricing model.

If you only think about the amount of resources you actually use monthly then that will help you to understand how much money you can save for your company. The first tricky question is how to define what your average load is and how much space your VM should have for scaling. The most complex task is to ensure that you will have enough space if your traffic will significantly go higher.

The majority of hosting providers offer “pay as you go” pricing models that lead to a limitation of payment flexibility. This model allows buying VMs with a fixed configuration. However, usually the next configuration is twice the previous one. In this case, scalability will not be very precise and you will overpay just to be sure that you have enough resources for scaling.

The advantage of a “pay as you use pricing model” is that it helps you save a significant amount of your hosting bill. It allows you to scale the number of resources you really need and make automatic resizing, depending on your application load. Container technology has made it possible to split servers into smaller pieces and scale automatically whenever you need it. In this case, you never overpay and do not need to reconfigure your server manually.

Hidora, as a truly container-based cloud platform, enables even more cost-saving options for your company.

How can Hidora help a startup reduce its hosting bill:

pay as you use
  • Use vertical scaling up and down options to scale automatically and smoothly without writing any scripts. Scaling is being performed using small chunks of data equal to 128 MB of RAM and 400 MHz CPU. As a result, you never overpay for resources you don’t use and can handle the majority of traffic spikes easily.
  • Turn off testing environments throughout the night in order not to pay for RAM and CPU. Hidora charges you only for resources you actually use. Once you shut down your environments, we will take into account only the storage space your environments use. Usually, this approach can reduce your standard hosting bill up to 60%.
  • Use automatic horizontal scaling. Even if you have access to the powerful feature of automatic vertical scaling, sometimes it is not enough to handle huge traffic spikes. Horizontal scaling that distributes copies of your application across multiple servers, comes as a solution in this case. With Hidora, horizontal scaling can be automated and adjusted based on thresholds such as RAM, CPU or I/O usage. It helps you grow or shrink your application automatically based on load profile, which eventually minimizes overhead and your hosting bill.
  • Pay less for disks. Many cloud providers require you to define a disk size. However, this leads you to pay in full for a pre-allocated disk even if your application consumes only 1% of its capacity. Hidora bills you only for the real usage of disk space, not for the allocated disk space.
  • Save money for backups. Hidora offers 2 backups daily for free and you don’t need to configure them manually.
  • For Java applications, there is a special GC-java-agent that optimizes memory consumption. You will pay less for Java application RAM if you host it on Hidora.

As a conclusion, PaaS allows you to have a high level of automation that greatly saves you time for application deployment, resulting in a decrease in the number of system administrators and an increase in financial savings.