Product Overview:

Background Businesses often face challenges when establishing cost optimization that is sustainable in the long run. They tend to spend money on overprovisioned or idle instances, which can be wasteful. According to Gartner, only 11% of organizations manage to maintain cost savings for three consecutive years.

Some data points on how businesses are impacted because of a lack of cost-savings strategy are:

• Studies show that about 35% of companies experience financial losses due to over-provisioned instances and suboptimal network setups on Cloud Providers like AWS.

• Despite a gradual implementation of cloud cost optimization strategies, approximately 32% of businesses still fail to optimize their cloud costs effectively.

• Clients face various challenges in optimizing expenses on the Cloud, such as suboptimal resource utilization, complexity in choosing the right pricing model among different providers, and the ongoing tradeoff between flexibility and control.

Some data points around cloud usage:

• Public Cloud Market: The global public cloud computing market is projected to reach $623.3 billion by 2025, growing at a CAGR of 19.4%.

• Cloud Security: Studies show that 94% of businesses report improved security after switching to the cloud.

• Cloud Market Share: AWS leads the public cloud services market with 31% share, followed by Microsoft Azure at 20% and Google Cloud at 9%.

• Cloud Adoption: Cloud storage adoption is increasing with the average enterprise using over 1,400 cloud services, a 23% increase from 2019.

To gain optimal benefits, firms should address five different areas:

• Architecture: Identify and select the right architecture and implement the well-architected framework, scale applications on demand and avoid excessive security or resilience.

• Operations: Cost analysis, reporting, utilization and application lifestyle management are some costs related operational processes that needs to be monitored and continuously improved.

• Pricing Models: Purchase ‘savings plans’, ‘reserved instances’ and leverage AWS ‘enterprise discount program’ to reduce and optimize costs.

• Cost Management: AWS cost explorer, usage reports, budgets, compute optimizer provides views and findings to identify the utilization of instances and keep a check on the usage.

• Service Optimization: Range of AWS services and resources to enable customers efficiently control costs while maintaining performance and capacity.

Digital Alpha's Cloud Cost Optimization solution helps customers save money while maintaining optimal performance and capacity for modern applications.

Features

• Manage Cloud Finances: Appoint someone to analyze and reduce cloud costs regularly, using cost management tools to identify savings opportunities.

• Automate and Optimize: Automate routine tasks and optimize resource usage to save on labor costs and reduce waste.

• Leverage Discounts: Take advantage of discounts by opting for long-term contracts or prepaying for services.

Benefits

• Cost savings: Optimize cloud usage to reduce costs and free up resources for other business initiatives.

• Improved scalability: Efficiently scale resources to meet changing demand without overspending.

• Enhanced performance: Optimize cloud instances for better application performance and higher customer satisfaction.

• Better visibility: Gain insights into cloud spending and usage to identify areas for improvement and reduce unnecessary spending.

• Increased agility: Free up resources to invest in new initiatives or improve existing processes and stay ahead of the competition.

Common Use Cases

• Keep a constant eye on infrastructure costs

• Foster a cost-conscious culture to ensure everyone is mindful of expenses

• Maximize cost-efficiency when using cloud providers to optimize spending

Deliverables

1. IT Strategy Re-Modelling * IT Environment Discovery * Operational Transformation * Adopt a Consumption Model

2. Cloud Strategy Modeling * Check for bugs to avoid unnecessary usage of Cloud resources * Right-Size Infrastructure based on resource utilization * Retain apps On-Prem in case of a weak business case * Use Reserved Instances when long-term resource usage is known * Reduce Ownership cost by using Managed Services * Assess SW license costs on Cloud v/s On-Prem * Decommission datacenters when not in use * Track usage of “free” resources * Reduce data transfer costs * Find ways to optimize Multi-Cloud Architecture based on metrics * Automate shutdown of unused Instances & their dependencies

   1. Cost Governance * Foster Accountability & Tagging for Chargeback/Show back * Create a Proactive Cost Control System at project, product & LOB level