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How to manage cloud transfer and egress charges

Updated: May 11, 2022

How to manage cloud transfer and egress charges

Moving data out of the cloud is expensive -- sometimes shockingly expensive. This will help you avoid costly data transfer bills. Cloud service providers can help customers determine which size of environment is best for their needs based on performance and cost. It is important for IT teams to pay attention to where their costs are coming from, since cloud computing costs can quickly spiral out of control without proper planning.

One of the main factors in managing cloud computing costs is the cost of egressing data. Those who send data into the cloud do not pay for it, and the egress costs can add up quickly.

Generally, cloud-based data transfers within the same cloud region are free. After all, cloud service providers want you to use their other services. Once you move data outside the region over the internet, whether it is region-to-region transfers or from a region to the cloud edge, that's when you incur data transfer fees.

We will review how data egress fees can skyrocket and strategies organizations can use to keep these costs down in this article. Cloud vendors are typically fairly transparent about these fees, but they can still be high.

How egress costs can add up?

Let's look at how cloud activity can change in scope and function, which triggers costs to spiral out of control.

Top best practices for saving money with cloud

These days many schools are moving to cloud-based learning management systems (LMSes), which serve as an educational portal through which students can take tests and browse educational content.

Most students were sent home when the pandemic struck in 2020. Using these platforms, video lessons could be recorded and shared by teachers with students at any time. While this is convenient for students, it significantly impacts the school's cloud billing. Recorded content in the platform creates a storage cost, and as students watch the videos, the school must pay for the data being sent out. Depending on the bit rates of these videos, streaming costs can quickly add up, sometimes in an unexpected way.

In the future, video conferencing and recording will continue to be used by organizations of all types to share information and to inform people who cannot attend in person.

In order to address the cost concerns, YouTube and other third-party sites can be used, but that creates work. A better solution is to reduce the size of what you put into the cloud, especially if you can do that across the board.

When data is transferred, transfer charges are incurred. These costs can quickly accumulate.

The convenience of the cloud comes at a price

Data generated by organizations is only growing. The cloud provider isn't to blame; it's simply a change to how organizations use the resource. The key is to understand your applications through these changes and how they relate to cost.

It is often the case that infrastructure teams sit on the edge of application development and DevOps, but they deserve a seat at the table for more than just installation. They should observe and offer advice on any design changes or upgrades, so that the organization understands how these decisions will affect data transfers and potential egress charges as well

People want the best quality video and full access to years and years of data, but these may not be cost-effective for items deemed low priority. In order to keep egress costs down, an organization might consider actions and limitations on the availability of historical data or the quality of video data.

This isn't just about reducing your active footprint; it's reducing what comes back out of the cloud -- even if it causes a slight inconvenience. Egress charges can be an expensive oversight, so to minimize costs, difficult decisions may have to be made.

This will require a balance act, and you are bound to make a few mistakes. Always rely on reporting for the insight you need to guide your decisions, but you must be willing to discuss the issue openly with everyone. When everything is metered, the freewheeling nature of on-site resources must give way. Your service provider is always monitoring your cloud computing costs.


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