Demand and costs are outpacing data quality and putting a big strain on IT and (IT) Finance Teams.
IaaS is a Catalyst for Digital Transformation:
Infrastructure-as-a-service (IaaS) is a foundational element to driving innovation and building internal operational efficiencies. In order to gain the IT agility and scalability needed to be competitive in the market, IaaS is the means to achieve these objectives. And while digital transformation has been the buzz word du jour, it remains as CIO’s top priorities in 2022 and beyond. In fact, in a recent industry study, 64% of IT decision makers surveyed said that modernization was their top goal over the coming year, which cannot be accomplished without public cloud infrastructure and a flexible strategy.
All this coupled with the promise that IaaS would reduce cost moving from a capex to an opex model and only paying for the services you use. As adoption of public cloud is on the rise, so too are the costs and complexity for managing a multi-cloud environments. Costs are morphing so out of control, that customers are now looking to go with Managed Service Providers (MSPs) for support. No longer can IT “set it and forget it” and still achieve their budgets so having a solution that provides the transparency and analytics necessary is essential streamlined and easy as possible – because we know you want to start taking advantage of the benefits of our solution.
On average, enterprises today have 3 or more IaaS instances as noted in a study by Vanson Bourne.
Provides on-demand access to computing services, storage and networking resources with a pay-as-you-go model
Frees up IT resources allocated to the management of data center infrastructure
Eliminates the need to purchase any expensive high-end hardware
Creates scalability, and includes flexible access and security
Gartner estimates that by 2025 90% of large organizations with legacy applications in the cloud will leverage external service providers for management and support as workloads continue to shift to hybrid / multi-cloud models, requiring the inclusion of managed services to win new business.
By 2025, 51% of IT spending will have shifted from traditional solutions to the public cloud, compared to 41% in 2022. Almost two-thirds (65.9%) of spending on application software will be directed toward cloud technologies by 2025, up from 57.7% in 2022. However, implementing and successfully maintaining any of these models, particularly the growing trends towards hybrid or multi-cloud models can be quite challenging and difficult to keep up with at any department level.
As a C-Suite executive and/or key senior level IT and/or (IT Finance stakeholder deeply invested in cloud optimization opportunities and financial operations, are you prepared for what lies ahead? The reality is that many enterprises simply are not. That said, as AWS rolls out their new enhancements this year to drive adoption, a recent Accenture study found that 68% of companies are still unable to realize tangible and valuable benefits from their cloud data. Without having a holistic view (single pane of glass) and detailed reporting across your entire IT infrastructure, it is virtually impossible to maximize value.
1. Increasing Costs
With a few clicks of a mouse, you can increase your server capacity, add on services and more. Projects ebb and flow so invariably, you spin up capacity to complete the project that you can easily forget to dial back the infrastructure. More and more IT and functional departments are leveraging the cloud and with a lot of hands in the system, maximizing effectiveness becomes increasingly difficult.
2. Maximizing Utilization
When it comes to your infrastructure, it’s important to understand whether or not you have the right resources established and consistently monitor consumption, so you are not paying for resources you are not using. Not only does this impact costs but also efficiency of your entire IT team. Given the fact that the majority of businesses have multiple cloud models and providers, it’s essential to have a holistic view across all in order to truly effect optimal utilization.
3. Monitoring & Management
In a June 2022 Couchbase Survey of over 600 IT decision makers, found that with a typical enterprise spending more than $33 million a year on cloud services, and spending 35% more than what’s necessary, many are losing more than $8.75 million that could be saved or spent elsewhere. The majority – 61% – of enterprises have had to restrict their digital transformation ambitions because of challenges with cloud services, while 58% choose cloud services that did not give the ability to scale the business to meet demand.
Following data security as the top concern at 43%, managing data in the cloud came in as a close second along with monitoring and keeping costs under control.
Organizations need to be able to aggregate, analyze and understand their IaaS costs in order to optimize spend and make informed decisions that impact the above. Data should be as granular as the billing itself and deliver visibility into spend, assets and usage in order to eliminate charges for unauthorized, misused, unused, or unnecessary services.
Company: A national home improvement retail chain with ~500,000 employees and 2,000+ locations across the US.
Vendors: AWS and Azure
Challenge: A lack of financial transparency as well as an inability to chargeback and showback expenses across IaaS vendors.
$8.4M
in chargebacks
automated per
month
24-48 hrs
of manual labor
saved per week
Company: A national home improvement retail chain with ~500,000 employees and 2,000+ locations across the US.
Vendors: AWS and Azure
Challenge: A lack of financial transparency as well as an inability to chargeback and showback expenses across IaaS vendors.
$8.4M
in chargebacks
automated per
month
24-48 hrs
of manual labor
saved per week
$8.4M
in chargebacks
automated per
month
24-48 hrs
of manual labor
saved per week
Company: A US based multi-national producer of healthcare, worker safety and consumer goods with ~90,000 employees and an annual cloud spend of $79.4 million.
Vendors: AWS and Azure
Challenge: The main issue was a need for centralized visibility of all carriers and cost allocation by service type.
$1.3M
annual spend
Company: A US based multi-national producer of healthcare, worker safety and consumer goods with ~90,000 employees and an annual cloud spend of $79.4 million.
Vendors: AWS and Azure
Challenge: The main issue was a need for centralized visibility of all carriers and cost allocation by service type.
$1.3M
annual spend
Company: A US based multi-national fintech enterprise in the online payment industry with ~31,000 employees and an annual spend of $92.2 million.
Vendors: Google Cloud (GCP)
Challenge: To eliminate wasteful spending and reduce IaaS costs.
$9M
identified savings
Company: A US based multi-national fintech enterprise in the online payment industry with ~31,000 employees and an annual spend of $92.2 million.
Vendors: Google Cloud (GCP)
Challenge: To eliminate wasteful spending and reduce IaaS costs.
$9M
identified savings
Company: A leading global energy provider with ~40,000 employees worldwide.
Vendors: AWS, Azure, Oracle
Solution + Results: Tangoe automated the ability to chargeback $2.5 million per month to the correct business units and provide cost visibility throughout the organization. Tangoe One Cloud’s rule-based processes was crucial for the client because it enabled us to allocate expenses timely and accurately each month. Often times, the IaaS vendor cannot fulfill changes on time. Tangoe can accommodate that by applying a rule to allocate the charges as the client expects. The client also leveraged multiple reports such as Virtual Desktop Cost and Allocations as well as a configurable Budgeting Tool that:
Company: A US based multi-national producer of healthcare, worker safety and consumer goods with ~90,000 employees and an annual cloud spend of $79.4 million.
Vendors: AWS and Azure
Challenge: The main issue was a need for centralized visibility of all carriers and cost allocation by service type.
$1.3M
annual spend
Company: A US based multi-national data center provider with 4,000+ customers across 5 continents.
Vendors: AWS and Azure
Solution + Results: After onboarded a customer who was already manually optimized previously, we quickly realized that their environment had changed significantly. Using software instead of manual intervention, the data center was able to reduce cloud costs by 40% by implementing the recommendations.
40%
in additional
cost reduction
1.
Data that delivers immediate and straight-forward insights towards cost savings based on real-time spend and usage.
2.
An AI-embedded solution that gives you instant optimization recommendations with just the push of a button.
3.
The ability to override tags for all added resources. Often times, tags will get misspelled. Instead of tracking down the resource and changing the tags in the cloud portals.
4.
Flexible asset and resource utilization thresholds / time range settings that you can control and set yourself.
5.
A Scheduler Pausing Instance feature that automatically stops and starts the use of resources when capacity has maxed out to reduce utilization time.
6.
Role-based access control that will tighten compliance, security and enforce governance protocols.
7.
A fully automated onboarding process (with editable policies) for new providers without needing to install any software.
8.
The ability to right-size virtual machines, databases, data warehousing and storage volumes in real-time.
9.
An easy way to decommission unused storage volumes, load balancers and snapshots.
10.
Instant filtering /identification and removal of unapproved recommendations with supporting reasons / rationale that can be delivered back to leadership.
1.
Data that delivers immediate and straight-forward insights towards cost savings based on real-time spend and usage.
2.
An AI-embedded solution that gives you instant optimization recommendations with just the push of a button.
3.
The ability to override tags for all added resources. Often times, tags will get misspelled. Instead of tracking down the resource and changing the tags in the cloud portals.
4.
Flexible asset and resource utilization thresholds / time range settings that you can control and set yourself.
5.
A Scheduler Pausing Instance feature that automatically stops and starts the use of resources when capacity has maxed out to reduce utilization time.
6.
Role-based access control that will tighten compliance, security and enforce governance protocols.
7.
A fully automated onboarding process (with editable policies) for new providers without needing to install any software.
8.
The ability to right-size virtual machines, databases, data warehousing and storage volumes in real-time.
9.
An easy way to decommission unused storage volumes, load balancers and snapshots.
10.
Instant filtering / identification and removal of unapproved recommendations with supporting reasons / rationale that can be delivered back to leadership.
Managing the many challenges of operating multi / hybrid-cloud environments, requires a flexible, intuitive, AI-driven CEM solution with spend, inventory and usage analysis, cost allocation, budgeting and deep reporting capabilities, as well as automated optimization recommendations across all global assets that with just the click of a button, you can quickly and easily implement right away from a secure, central location.
Tangoe One CEM for IaaS is an end-to-end lifecycle solution that provides enterprises of all sizes the information and capabilities to budget, track and optimize cloud spend, assets and usage across all cost centers, locations and geographies on an ongoing basis. It gives you the ability to take immediate action based on near real-time insights right from within your CEM platform. The result is ROI on your cloud program whereby it ends up just about paying for itself
SIMPLIFY
With centralized, standardized data that links all cloud expenses to assets and their associated cost centers.
MANAGE
Leverage robust analytics and custom alerts that keep you organized and informed.
OPTIMIZE
Utilize the power of AI-driven automation to reveal instant cost savings recommendations you can act on immediately.
SECURE
Tighten controls over your cloud ecosystem by strengthening compliance and security protocols, eliminating overspending, and protecting your intellectual properties.
