What are the hidden costs in AWS and Azure?

AWS and Azure provide flexible and scalable cloud solutions, but costs can rise unexpectedly without proper management. One major expense stems from data transfer fees, particularly in hybrid cloud setups where transferring data between on-premises and the cloud leads to high egress charges.

Another hidden cost comes from underutilized resources—idle virtual machines, storage, and databases that continue to accrue charges despite not being actively used. Additionally, storage costs can increase due to backups, snapshots, and archive retrieval fees.

Improperly configured auto-scaling can result in excessive spending by over-provisioning compute resources. While reserved instances offer cost savings, they require long-term commitments that may not align with a company’s evolving needs.

Operational expenses, including monitoring, security, and compliance, further contribute to the overall bill. Advanced security features, identity management, and compliance tools often come with additional charges in both AWS and Azure.

Moreover, licensing fees for software and third-party services can significantly impact costs, especially for businesses running Microsoft workloads on Azure or specialized analytics tools on AWS.

To keep cloud expenses under control, businesses should implement cost optimization strategies, such as right-sizing instances, leveraging cost monitoring tools, and optimizing data transfer.

Location: New York, NY, USA

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