Remember the cloud bill is formulated by cost = usage * rate. The two methods of reducing the cloud bill are reducing usage and reducing the rate you pay. Rate optimization is the process of getting a better rate for the same resource. Unlike usage optimization rate optimization often comes with a commitment to the cloud service provider. Committing to use/spend a set amount over a particular term—often 12-36 months—enables the cloud service provider to provide a lower rate for the same usage.
Successful rate optimization requires a deep level of understanding cloud billing and is often best analyzed over your entire cloud bill not on a team-by-team level. This is why one of the FinOps principles is for “A centralized team drives FinOps“ in which rate optimization is managed.
How to get started and what great looks like.