Cloud optimization refers to the process of enhancing the efficiency and cost-effectiveness of cloud-hosted systems. Many businesses find that they are not achieving the expected value from their cloud investments, leading to the need for optimization. This can involve refactoring code, exploring more cost-effective cloud platforms, or even moving applications back on-premises. The goal is to ensure that resources are utilized effectively, ultimately saving money and improving deployment efficiency.

To avoid overprovisioning, businesses should focus on analyzing performance metrics and usage patterns. This involves right-sizing resource consumption to match actual needs, which can help eliminate unnecessary expenses. Utilizing autoscaling features provided by cloud platforms can also help adjust resources based on demand, ensuring that only the necessary amount of computing and storage is allocated.

Organizations can minimize cloud storage costs by utilizing appropriate storage classes based on access frequency and retrieval time requirements. For instance, using object storage services like Amazon S3 for infrequently accessed data can reduce expenses. Additionally, implementing data lifecycle policies to automatically transition or delete aging data can help manage retention requirements while keeping costs in check.