Public Cloud Cost Clarity And Optimisation – At No Additional Cost

Ensuring cost clarity and optimisation on any public cloud platform is valuable.

Ensuring cost clarity and optimisation on any public cloud platform is valuable. Unfortunately, most companies struggle with attaining either or both of these goals. We at Nordcloud believe that a real Solution Provider should do this for the customer. At no additional cost.

For years public cloud has delivered IT Infrastructure as it should be, an on-demand service charging only for the actual use. Resources and services can be fired up and turned off instantly and programmatically as they are needed. More often than not, users are quick to move ahead in resource and service use – but a lot slower in cleaning up or shutting down unnecessary resources.

Public Cloud Cost Clarity And Optimisation

Billing data is very granular and can even go down to the level of cost of an individual request, delivered kilobyte or second of resource use. This granularity delivers the ultimate “pay only for what you use” promise. The flip side is that with any significant public cloud use, the billing data becomes huge and eventually a nightmare to make any sense of. We have all heard which road is paved with good intentions!

Public cloud cost clarity means really understanding what is driving its costs, how costs could be contained – and ultimately who should pay for these costs. A pay-as-you-go model does not really work if the costs are allocated inaccurately in the organisation. To add to the mix, providers offer several ways to reduce service costs by choosing the right service types, through volume discounts, reservations or discounts from continued use. While buying public cloud services has become more flexible it has also become more complex.

Our customers are undisputed leaders in their respective fields. They use the public cloud to make product and service innovations, deliver value to their customers every day and disrupt their industries. This is their core competence – not necessarily the public cloud itself. A master carpenter often does not know how to make the best possible chisel, he just uses it artfully. Why should a world leader in specialist travel experiences shift their focus to public cloud cost reporting, sorting out allocations every month or try to learn ways to save money?

Monitor And Analyse The Public Cloud Spend

Public cloud cost optimisation requires deep and consistently current understanding of the many ways to purchase it – and how they would fit the organisation’s current and planned use. You pay too much If you don’t do anything – you may pay too much if you optimise the wrong way. Our customers’ experiences and skills in cost optimisation vary greatly and results follow this variance. As with many other things in life – optimisation is best left to experts.

We at Nordcloud help our customers with both cost clarity and cost optimisation. We provide our customers with Nordcloud Insight, a proprietary tool, enabling our customers to view, monitor and analyse their public cloud spend in various ways. We also provide regular cost optimisation proposals driven by both artificial and real intelligence on how to save costs from the public cloud. Most importantly, we do this as continuous operations – professional cost optimisation is not a one-time event.

So far we have found meaningful cost savings opportunities from all of our customers – even those considered widely as best practitioners in the field. Typically we find opportunities ranging from 20-30% of their current public cloud costs. In the “best practitioner” category, our findings have still been well over 10%.

We deliver cost clarity and cost optimisation at no additional cost to our customers. We believe public cloud is different. We believe our customers should also be treated differently from the traditional hosting company customers.

Why not contact us and see how we could not only deliver cost clarity to you but also lower your cost of public cloud.

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    Public cloud cost clarity and optimisation – at no additional cost

    CATEGORIES

    Blog

    Ensuring cost clarity and optimisation on any public cloud platform is valuable. Unfortunately, most companies struggle with attaining either or both of these goals. We at Nordcloud believe that a real Solution Provider should do this for the customer. At no additional cost.

    For years public cloud has delivered IT Infrastructure as it should be, an on-demand service charging only for the actual use. Resources and services can be fired up and turned off instantly and programmatically as they are needed. More often than not, users are quick to move ahead in resource and service use – but a lot slower in cleaning up or shutting down unnecessary resources.

    Public cloud cost clarity and optimisation

    Billing data is very granular and can even go down to the level of cost of an individual request, delivered kilobyte or second of resource use. This granularity delivers the ultimate “pay only for what you use” promise. The flip side is that with any significant public cloud use, the billing data becomes huge and eventually a nightmare to make any sense of. We have all heard which road is paved with good intentions!

    Public cloud cost clarity means really understanding what is driving its costs, how costs could be contained – and ultimately who should pay for these costs. A pay-as-you-go model does not really work if the costs are allocated inaccurately in the organisation. To add to the mix, providers offer several ways to reduce service costs by choosing the right service types, through volume discounts, reservations or discounts from continued use. While buying public cloud services has become more flexible it has also become more complex.

    Our customers are undisputed leaders in their respective fields. They use the public cloud to make product and service innovations, deliver value to their customers every day and disrupt their industries. This is their core competence – not necessarily the public cloud itself. A master carpenter often does not know how to make the best possible chisel, he just uses it artfully. Why should a world leader in specialist travel experiences shift their focus to public cloud cost reporting, sorting out allocations every month or try to learn ways to save money?

    Monitor and analyse the public cloud spend

    Public cloud cost optimisation requires deep and consistently current understanding of the many ways to purchase it – and how they would fit the organisation’s current and planned use. You pay too much If you don’t do anything – you may pay too much if you optimise the wrong way. Our customers’ experiences and skills in cost optimisation vary greatly and results follow this variance. As with many other things in life – optimisation is best left to experts.

    We at Nordcloud help our customers with both cost clarity and cost optimisation. We provide our customers with Nordcloud Insight, a proprietary tool, enabling our customers to view, monitor and analyse their public cloud spend in various ways. We also provide regular cost optimisation proposals driven by both artificial and real intelligence on how to save costs from the public cloud. Most importantly, we do this as continuous operations – professional cost optimisation is not a one-time event.

    So far we have found meaningful cost savings opportunities from all of our customers – even those considered widely as best practitioners in the field. Typically we find opportunities ranging from 20-30% of their current public cloud costs. In the “best practitioner” category, our findings have still been well over 10%.

    We deliver cost clarity and cost optimisation at no additional cost to our customers. We believe public cloud is different. We believe our customers should also be treated differently from the traditional hosting company customers.

    Why not contact us and see how we could not only deliver cost clarity to you but also lower your cost of public cloud.

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      The myth of the workload movement

      CATEGORIES

      Blog

      Before you invest your time and money into hybrid cloud, you should understand the realities in workload movement between clouds. Who wouldn’t want to be able to move apps between clouds based on your own needs, not to mention that you wouldn’t need to do a single migration project again.

      So you’ve moved your apps to containers, invested in a Cloud Management Platform (the brokerage engine for your clouds) and you’re all set.

      Unfortunately, no. Even if you would have the technical possibility to move workloads, there are few critical topics that render it unusable in real life.

      Let’s start with some basic facts:

      • Your existing apps are not built with workload movement in mind.
      • Even the new applications need to be designed and built with workload movement in mind in order for that to work. And that comes with a cost.
      • Every cloud is a silo with its own features, tweaks, cost optimization options etc.

      So what are the difficulties with workload movement?

      First is your deployment processes – a pretty normal step in any change (including migration) is to plan, design, implement and validate. For you to benefit from workload movement, you need to minimize these steps. Let’s assume you get a 10% cost saving by moving to a new cloud. How much of the design, validation and coordination work can you fund with that? If you follow a DevOps process for your cloud native app, this is probably doable, but for your other apps this is big culture change or you’ll burn most of your savings in the project whilst performing the change.

      Data – most apps you consider to be a candidate for workload movement probably contain data, and lots of it. The data synchronization brings two challenges you need to tackle – data consistency and data transfer time. If data consistency is crucial for you, you first need to move every single byte of data before switching over, which means that at some point you need to stop taking new data in, sync the data and then start taking data in again. This probably means a production break, which means planning and execution work, which means costs and delays. The second issue in some cases is simply the time it takes to sync data. It can take weeks and can require separate physical swing boxes.

      Platform dependencies – we’re all supposed to use APIs that hide underlying technical implementation and thus make us less platform dependent. But the reality is that most of the APIs we use are unique, and those are the biggest competitive advantage of the cloud provider. You can write totally platform agnostic code, (that was the big promise from Java from about 20 years ago) but for various good reasons (time to market, cost, laziness etc) we tend to use platform specific features and functionalities. The rise of PaaS will further increase your platform dependency.

      We can be honest with ourselves and say that time and cost pressure in most apps dev project override any TCO, reusability and workload movement ambitions.

      They are not alike – even if you have the same stack at both ends (regardless if it’s Microsoft, Vmware or OpenStack based) they are not the same. A cloud consists of a large number of components and having the same versions of each component on both ends is not going to work. VM sizes are also different. Some workloads will move just fine, some not, but you need to plan and test.

      Skills – we’re in a global war for talent. Most companies have difficulties recruiting and developing skills for one cloud platform, so it’s tough finding people who not only can handle containers on multiple clouds but also do that on scale.

      Cost optimization – private cloud and public cloud have very different cost drivers and optimization possibilities. Your cost optimization options include long-term commitments, licence cost savings, right-sizing etc, all reducing your ability to move workloads to a different place.

      Getting your priorities right

      Enabling true cloud brokerage and workload movement code can be achieved but at a high cost. In most cases, the reality is that workload movement requires a separate project that creates costs, delays and ultimately takes away real appetite to move the workload. At the end of the day, it’s all about your company’s priorities. Do you get the competitive benefit from cloud brokerage, or maybe using the same money to bring new services faster to market? Workload movement is a nice thing to have but has a little positive effect on your TCO. In this case, time to market and your apps dev cost are much bigger drivers.

      • To find out more about Hybrid cloud, read my blog ‘How Hybrid do you need to be’  here 
      • Norcloud have been placed on the Gartner Magic Quadrant for the MSP journey for the second year, read more about it here

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