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Cloud Cost Optimization: Cutting Costs to Build Smarter IT

Data & Analytics

Last Updated: September 22, 2025

How Cost Optimization Starts with Smarter Choices, Not Just Smaller Budgets

Let’s be honest: when budgets tighten, the first instinct is often to cut. Press pause on projects. Freeze hiring. Trim wherever possible. It feels necessary—sometimes even responsible. But often, this reactive mindset leads to short-term relief and long-term regret.

Because cutting costs is easy. Optimizing them? That’s where the real work—and real impact—lies.

In today’s cloud-native world, IT leaders are under constant pressure to reduce spend, especially in the cloud. But what if the real opportunity isn’t in cutting, but in modernizing wisely? With cloud cost optimization in mind.

Solving A Big Problem Today: Reactive Cost Optimization

We’ve all seen it: when financial pressure hits, projects get shelved, upgrades are delayed, and transformation efforts slow down. The result? Innovation suffers. Technical debt grows. And suddenly, IT is just trying to “keep the lights on” instead of helping the business move forward.

Even worse, cloud waste is still rampant. Studies show cloud efficiency and spend is mostly wasted on idle resources, oversized workloads, or services no one’s using anymore.

The truth? Cost-cutting without context is just guesswork. It often misfires because it’s disconnected from what actually delivers value for your business.

Cloud Cost Optimization: Build Proactive Cost Awareness into Your Modernization Roadmap 

Instead of asking, “Where can we cut 10%?” we start asking, “How can we run smarter, not leaner—and fuel the future while we’re at it?”

That’s what cloud cost optimization is all about. It’s not just about spending less—it’s about spending right. And when done right, it becomes the foundation for sustainable IT modernization.

The idea behind it is a proactive approach to FinOps: continuous cost awareness, accountability, and alignment between finance and engineering. It’s a way to build financial discipline into the fabric of cloud-first IT operations—without putting innovation on hold.

So, What Does That Actually Look Like?

At Hexaware, we work with enterprises navigating this exact shift. We’ve built a framework that helps enterprises address cost optimization while modernizing their applications and infrastructure for long term sustainability—without the fire drills or surprise bills.

Here’s how it works, in four clear phases:

1. Identify Opportunities

Before anything else, get visibility.

  • What’s driving your cloud bills?
  • Where are you over-provisioned?
  • Which apps aren’t earning their keep?

Using a cloud transformation platform like Amaze® for Cloud, we map out the inefficiencies—from idle servers to oversized VMs—so you know exactly where your opportunities lie.

2. Define the Target State

Now that you know what’s wrong, define what “better” looks like.

Can you move that legacy app to a SaaS model? Can you optimize or rewrite retire a system entirely? What’s really needed for the legacy system modernization? This is where we pair technical modernization with financial modelling, so you know the savings and the business impact before making the move.

3. Plan and Optimize

This is where the real action happens. We tackle quick wins (like deleting unused storage), automate the heavy lifting (migration, provisioning, scaling), and phase out legacy components.

And because we’re using a platform like Amaze® for Cloud, backed by automation and AI, we’re not just faster—we’re more accurate, too.

4. Verify and Validate

Last step: check the results. Did your costs go down? Did performance benchmarks are maintained? Were the business goals met?

This phase is about closing the loop and making sure your optimization journey feeds into the next cycle. That’s how continuous improvement becomes a habit, not a project.

So Why Does This Matter?

Because when you stop thinking about cost-cutting as a crisis response, and start treating it as a strategy, everything changes. You:

  • Free up budget for innovation
  • Strategize for legacy app modernization
  • Retire costly legacy system infrastructure
  • Make IT more agile, efficient, and future-ready
  • Build a culture that values smarter decisions over quick fixes

In simple terms: you run better, spend wiser, and move faster.

A Quick Word on Tools and Technology

Let’s be real—none of this works if you’re relying on spreadsheets and intuition. Automation and AI are essential.

Intelligent cloud journey automation platform Amaze® for Cloud doesn’t just analyze your apps—they recommend the best modernization path, estimate the cost impact, and even automate the migration. That’s what allows us to deliver results faster and more sustainably.

How It Worked for Our Client

By rethinking how data flows through their operations, the client not only unlocked efficiency but also uncovered new ways to connect with their customers.

Optimizing Costs While Also Personalizing the User Experience

Our client, a telecom provider, wanted to speed up their cloud transformation by improving user experiences and cutting costs. They had an old, on-premises system for meetings, calls, and chat, with many different telephony vendors across countries.

This caused problems with compatibility, made it hard to see how much cloud resources were being used, which also led to poor collaboration.

Our Cloud Cost Optimization Solution

We helped by moving call routing to the cloud and making sure users could securely access collaboration tools on any device. This made things simpler and better for everyone.

The Benefits of Cloud Cost Optimization

Because of these changes, the client saved about 40% on support, telecom, infrastructure, and licenses. Moving to the cloud also reduced expensive disaster recovery and security costs since they no longer depended on their data center.

Additionally, with clearer insights into usage and spending, they could manage costs better while giving users a smooth and personalized experience. Read the full case study here.

Final Thought: Don’t Let Cost Optimization be an Afterthought

Sustainable cloud modernization isn’t about doing everything—it’s about doing the right things, in the smartest way possible. So, if you’re a CIO, a FinOps lead, or just someone trying to bring order to the cloud chaos, check out our guide, plus here’s your call to action with cloud cost optimization:

  • Don’t wait for a budget crisis to act.
  • Build cost awareness into your modernization roadmap.
  • Treat every optimization win as fuel for innovation.

Because when you plan for cost optimization proactively, you don’t just save—you scale. You modernize with purpose. And most importantly, you free your teams to build what’s next.

Learn more about cost optimization from ISG’s survey, or begin your journey toward cloud success with Hexaware’s transformative cloud solutions addressing tomorrow’s business challenges.

About the Author

Rathinavel Chandran

Rathinavel Chandran

Director

As a Director at Hexaware, Rathinavel Chandran leads the AWS Cloud Center of Excellence (CoE), leveraging over 25 years of experience to drive strategic cloud transformation initiatives. He is responsible for Enhancing AWS capabilities across the organization, Designing and executing cloud migration and modernization strategies, Supporting pre-sales engagements across diverse industry verticals, Helping customers optimize cloud costs and Maximizing benefits from cloud provider funding programs. His leadership ensures scalable, cost-effective, and innovation-driven cloud adoption for Hexaware’s clients.

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FAQs

FinOps empowers enterprises to treat cloud spend as a strategic investment. By uniting finance and technology teams, it ensures every dollar spent drives measurable business value.

Smart cost optimization releases capital that can be reinvested in innovation. It funds cloud-native adoption, new digital capabilities, and faster transformation—without inflating budgets.

Modernizing legacy estates cuts hidden costs of maintenance and inefficiency. It unlocks agility, reduces risk, and enables scalable platforms that deliver stronger ROI over time.

Amaze® for Cloud accelerates modernization with automation while embedding FinOps discipline. The result: faster time-to-value, optimized spend, and a sustainable path to cloud-driven growth.

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