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Using AI for Cloud Cost Optimization

Published on
Last updated on

March 28, 2024

Max 3 min
Using AI for Cloud Cost Optimization

In recent years, cloud services have become increasingly popular as more and more organizations embrace the convenience, flexibility, and scalability cloud services provide.  However, as cloud adoption rises, so does the need for optimizing the cost of  those services. To address this challenge, businesses are turning to artificial intelligence (AI) and machine learning (ML) to improve and scale the management of resource allocation and cloud spend. 

One such solution is Sedai, an autonomous cloud management platform that incorporates AI/ML to provide cost optimization. In this article, we will explore why AI-driven cloud cost optimization solutions are the future, how they are superior to traditional static and threshold-based tools, and how Sedai's platform can lead to significant cost savings in cloud environments.

Limitations and Complexities of Traditional Cost Optimization Tools

Traditional cloud cost optimization tools often rely on static rules and threshold-based automation, which can be insufficient in today's dynamic and rapidly evolving cloud environments. These tools may struggle to adapt to changing usage patterns, resulting in suboptimal resource allocation and increased cloud spend. Additionally, manual intervention is often required, making traditional solutions less efficient and more prone to human error.

1. Inability to Keep Up with Modern Rapid Release Cycles Enabled by CI/CD ♾️

Traditional cloud cost optimization tools were not designed to cope with the continuous integration and continuous delivery (CI/CD) pipeline that has become the norm for modern application development. CI/CD pipelines allow for rapid and frequent releases, with developers pushing out new features, updates, and fixes at an accelerated pace. 

These continuous changes can lead to fluctuations in resource requirements, making it difficult for static rules and threshold-based automation to keep up. Consequently, traditional tools might not be able to effectively optimize costs in real-time, potentially leading to wasted resources and increased cloud expenses.

2. Growth of Microservice Architectures 📈

Another challenge that traditional cloud cost optimization tools face is the growing popularity of microservice architectures. Microservices break down large, monolithic applications into smaller, independently deployable components that communicate with one another through APIs. 

This architectural pattern can lead to increased complexity, as each microservice might have different resource requirements and scaling behaviors. Traditional tools may struggle to handle this complexity and to accurately predict the optimal resource allocation for each microservice, again resulting in suboptimal cost management.

3. Limited Visibility into Application Performance 🔍

Traditional cloud cost optimization tools typically focus on infrastructure-level metrics, such as CPU usage, memory consumption, and network bandwidth. However, they often lack the ability to analyze application-level performance data, which can provide crucial insights into how resources are being utilized by the applications themselves. Without this visibility, it becomes difficult for these tools to identify inefficiencies or to accurately predict resource requirements, ultimately leading to poor cost optimization decisions.

4. Reliance on Human Resources👨🏻‍🔧

As mentioned in the initial paragraph, traditional cloud cost optimization tools often require manual intervention to adjust resource allocations and scaling policies. This not only makes these solutions less efficient but also introduces the potential for human error. With the increasing complexity of modern cloud environments, IT teams are already under immense pressure to manage and maintain their infrastructure, and manual cost optimization efforts can further strain their resources. Moreover, human intervention can result in inconsistencies and inaccuracies.

The Advantages of AI-Driven Cloud Cost Optimization

AI/ML-driven cloud cost optimization solutions, like Sedai, offer several advantages over traditional tools:

1. Adaptability for Ongoing Changes 🦎

AI/ML-driven solutions can continuously learn from historical and real-time cloud usage data, enabling them to adapt to changing usage patterns and optimize resource allocation accordingly. This adaptability results in more efficient and cost-effective cloud environments.

2. Proactivity for Uninterrupted Operations 🚦

Unlike static, threshold-based tools, AI/ML-driven solutions can proactively identify and eliminate idle and unused resources, leading to substantial cost savings. They can also predict and prevent potential issues, such as performance bottlenecks and resource shortages, ensuring smooth and uninterrupted operations.

3. Precision for Optimal Savings 💰

Machine learning models can accurately predict optimal resource allocation, resulting in more efficient use of cloud resources and reduced cloud spend. This precision allows organizations to make better-informed decisions about their cloud infrastructure and minimize waste.

4. Automation for Maximum ROI 📊

AI/ML-driven solutions can automate various aspects of cloud cost optimization, reducing the need for manual intervention and minimizing the risk of human error. This automation frees up valuable time for IT teams, allowing them to focus on more strategic tasks and initiatives.

In summary, traditional cloud cost optimization tools face several challenges in today's dynamic and rapidly evolving cloud environments, including the inability to keep up with modern rapid release cycles enabled by CI/CD, the growth of microservice architectures, limited visibility into application performance, and reliance on human intervention. As a result, these tools may struggle to adapt to changing usage patterns, leading to suboptimal resource allocation and increased cloud spend.

Why AI/ML-Driven Cloud Cost Optimization Solutions are the Future

As cloud environments continue to grow in complexity and scale, AI/ML-driven solutions like Sedai are poised to become the standard for effective cloud cost optimization. These solutions offer several key benefits that make them the future of cloud cost management:

1. Scalability 🚀

As organizations expand their cloud infrastructure to meet evolving business needs, AI/ML-driven solutions can efficiently manage and optimize resources, ensuring optimal performance and cost efficiency autonomously.  For example, AI/ML based systems can readily cope with the thousands of individual microservices or serverless functions that make up many customer environments, a level of complexity that would overwhelm traditional tools operated manually.  

2. Continuous Improvement 🛠️

AI/ML-driven solutions can learn from new data and improve their performance over time, ensuring that organizations always benefit from the latest insights and optimizations based on usage. This continuous improvement allows businesses to stay ahead of the curve and maintain a competitive edge as they grow and evolve.

3. Customization 🎨

AI/ML-driven solutions can be tailored to the unique requirements of each organization, delivering personalized recommendations and optimizations that align with specific business goals and objectives. 

4. Data-driven Decision Making 👩🏻‍💻

By leveraging AI and ML to analyze vast amounts of cloud usage data, organizations can also make data-driven decisions that lead to better resource allocation, improved performance, and reduced cloud spend. 

Sedai, an AI/ML-Driven Solution for Cloud Cost Optimization

Sedai is an autonomous cloud management platform that leverages AI/ML to deliver continuous optimization, helping modern application teams maximize performance, cloud cost efficiency, and availability at scale. Sedai enables teams to shift from static rules and threshold-based automation to modern ML-based autonomous operations. The platform has several key features that set it apart from traditional solutions:

1. Infrastructure Discovery ☁️

Sedai discovers your infrastructure, application, and traffic patterns, providing a comprehensive understanding of your cloud environment. This visibility enables the platform to make accurate and data-driven recommendations for optimization.

2. Recommendation Engine 🤖

Sedai's recommendation engine analyzes historical and real-time cloud usage data, identifies inefficiencies, and provides actionable recommendations for reducing costs. The engine validates potential changes with multiple safety checks, ensuring that organizations can make informed decisions for cost optimization.

3. Validation and Execution ⚖️

Sedai validates recommended changes and executes them autonomously, ensuring seamless and efficient cloud cost optimization. The platform's reinforcement learning capabilities allow it to adapt and improve its recommendations over time, leading to even greater cost savings.

Integration: Sedai easily integrates with existing cloud management processes and tools, streamlining cloud cost optimization efforts and enabling organizations to make data-driven decisions.


In conclusion, AI and machine learning techniques have the potential to revolutionize the way organizations manage their cloud resources and optimize costs. 

Sedai, an autonomous cloud management platform powered by AI/ML, is an excellent solution for businesses seeking to maximize performance, cloud cost efficiency, and availability at scale. By incorporating supervised machine learning, real-time data analysis, and innovative approaches, Sedai allows organizations to unlock significant cost savings and operate more efficiently in cloud environments. 

As cloud adoption continues to soar, AI/ML-driven cloud cost optimization solutions like Sedai will undoubtedly become the gold standard for effective and future-proof cloud scalability.

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