Cost optimization is a business-focused, continuous discipline to drive spending and cost reduction while maximizing business value. It includes: Obtaining the best pricing and terms for all business purchases. Standardizing, simplifying and rationalizing platforms, applications, processes, and services. Finding an alternative with the most cost-effective or highest achievable performance under the
given constraints, by maximizing desired factors and minimizing undesired ones. In comparison, maximization means trying to attain the highest or maximum result or outcome without regard to cost or expense.
The classical optimization techniques are useful in finding the optimum solution or unconstrained maxima or minima of continuous and differentiable functions.
These are analytical methods and make use of differential calculus in locating the optimum solution.
The value of cloud is in its on-demand nature, which frees up developers and IT to instantly gain access to resources to solve business problems. But at the same time, the lack of cloud cost optimization processes is resulting in significant waste in public cloud spend.
Implementing a cost optimization strategy is not a one-time initiative. Successful organizations view cost optimization as a continuous improvement exercise that results in a healthy balance of cost savings and innovation to help the business achieve extraordinary results.
The classical optimization techniques are useful in finding the optimum solution or unconstrained maxima or minima of continuous and differentiable functions. An act, process, or methodology of making something (such as a design, system, or decision) as fully perfect, functional, or effective as possible; specifically: the mathematical procedures (such as finding the maximum of a function) involved in this.
List of some well-known heuristics:
The use of optimization software requires that the function f is defined in a suitable programming language and connected at compile or run time to the optimization software. The optimization software will deliver input values in A, the software module realizing f will deliver the computed value f(x) and, in some cases, additional information about the function like derivatives.
Optimization tools and techniques: