Cloud Crunch
Cloud Crunch

Episode · 4 weeks ago

S4E2: Controlling my AWS spend to Invest in Innovation

ABOUT THIS EPISODE

Welcome back to Season 4 of Cloud Crunch. We intend to cover "How to control AWS spend to enable innovation investment.” Discover what does it mean to control my AWS spend to invest in Innovation? Why did you go to the cloud in the first place, and what does this look like for client? This conversation is led by our lead host and Director of Marketing, Michael Elliott. We are also joined by our honored guest Mary Fellows– Practice Director, Cloud Economics for 2nd Watch.

Involve, Solve Evolve. Welcome to cloud Crunch, the podcast for any large enterprise planning on moving to or is in the midst of moving to the cloud. Hosted by the cloud computing experts from Second Watch. Michael Elliott, Executive director of Marketing and Fred Bliss, CTO of all Things Data at second Watch and now here are your hosts of cloud Crunch. Welcome back to a new season of cloud Crunch. In this season, we're going to focus on AWS Reinvent, one of the biggest, if not the biggest cloud conference in the world, kicking off November twenty eight. Now, our intent is to enable...

...you, the viewer, the opportunity to immerse yourself in how cloud has really evolved since last year, on topics like preparing and building a center of excellence, extracting data insights, managing a cloud native environment, and data center evacuation. Joining me today is Merry Fellows, practice lead at second Watch. Welcome the cloud Crunch. Mary, Hi, Michael, thank you. Happy to be here. Awesome. So we're gonna kind of have a conversation around really controlling AWS spend because you know, that is a concept that people kind of think about, is you know, the rising growth of how much money I'm spending in AWS and you know, across all cloud platforms. So I'd like to kind of understand for you what does that really mean to control AWS spend well, Michael. On your journey to the cloud, there are a lot of things that you need to take into consider ration, especially if you're migrating...

...from on prem to the cloud. A lot of times customers will go like for like, which is basically creating a cookie cutter image of what they have on prem today moving it over to the cloud. What ends up happening is they find themselves way over provision in the cloud and on demand pricing, which is always on in the most expensive pricing that's available today. So by having a strategy on your way to the cloud, and once you get there for optimization, you're able to better position yourself and stay on top of your costs so they don't bulloon on you. Now, there's really two scenarios in that. One is the people who are strategizing around moving to the cloud, So what can they do, you know, thinking about that and starting to encompass that move into the cloud. But there's so many other people that are already there, so if you're already there and I think that's what you touched upon a little bit, what does that look like? I'm there, I'm you...

...know, I've got a lot of departments accessing the cloud. How do you approach then those people that are already on the cloud, what are some of those conversations and where do you start digging in to understand that spend. So, if you think about it, there are over hundreds of thousands of different options for cloud services out there today. There's over a thousand different options to set up a single e C two instance in AWS. So it's important to have a strategy once you're in the cloud that takes into effect the pillars of optimization. You need to look at reserved instances and savings plans, auto parking, right sizing, family refresh um and identifying waste in your environment and making sure that when you're developing or testing and developers are spending up new and environments for that purposes, that you're de calming those after they're no longer in use, and then also taking a look at your strategy um for storage as well. So we see a lot of customers with waste in their storage, like...

...unattached volumes that are hanging out there for you know, close to a year that you're just not using and it's just taking up space in the cloud and you're getting charged for it. So, without naming a client, can you give us an example of just type of you know, using that approach, real life experience about how that occurred and if you can divulge, what were the savings, what did those savings look like. So we've saved our clients hundreds of thousands of dollars in the cloud just last year. So a lot of our clients that come to us, uh, it's really we are teaching them how to fish, so to speak. So we're it's a new culture that you have to think about when you're in the cloud versus when you're on prem So in the cloud, like I said, there's hundreds of thousands of different options for services and products that are out there today. It's understanding and...

...knowing to pick the right ones that are right for you and coming up with a strategy. So optimizing your cost is one piece of it, but then kind of looking at your overall infrastructure footprint to say, do we want to take a look at server lists as containerization a good strategy for us. Do we have applications that are out there that are running on lots of b C two instances and maybe there's an opportunity for at modernization there. So it's taking a look at your infrastructure footprint along with your application portfolio and making the right decisions on the products that are out there today that's going to not only save you money but also increase your efficiency. So when we talk about, you know, cost savings within the cloud, who is that conversation traditionally with Is that with the CFO, Is that with the c I O. Who is who traditionally is leading that conversation? Great question, Michael, So where do we fit in as far as cost optimization for your I T infrastructure in the...

...cloud? We work with the I T teams and the finance teams and making sure that everybody has a joint language and understanding of consumption from a showback and a chargeback perspective. So it's really ingrained in the culture and teaching everybody that controlling your I T costs and being able to allocate those expenses back to the bus is crucial for growing your business and being able to stay on top of your cost and being able to stay fast and innovative on what you want to do with your strategic initiatives. Well, let's let's go into that as far as growing your business, because saving money in the cloud allows you to then reapply that savings. And with most large enterprises, they have an enterprise agreement, so they've already committed to spending a certain amount with AWS or with one of the other hyper scale urs. So it sometimes, and this is a question for you, is a lot of times that savings that there they're trying...

...to reach give them the ability to then innovate and invest that money into new development, new applications that actually either solve business problems or focus around creating new applications which drive increase revenue for the company. So that's a great question, Michael. Another service that we offer, and another thing that clients should consider is an enterprise e d P or a p p A, which is a partner led um pricing agreement that takes into account a specific term and a specific comment amount. And what this is is a private pricing agreement with AWS, and you can also include marketplace purchases and that so if you know that you have some services from AWS that you love that you're going to be using in the next couple of years, and they're already paying for them today. Being able to bundle that along with your compute services for a committed rate and term,...

...you're able to gain additional savings based on that. So I have because you throw a couple of acronyms I'm not familiar with. So one of them was what p p A, which stands for private pricing agreement, So it was formerly known as an E d p SO. But the p p A s UM allow customers to be able to come to a BS and say, hey, I'm here, I love the service, I love the UM everything that we're using in the cloud today. We know we're going to have a certain percentage of growth for the next three years or the next five years, can we get a discount for that commitment. So a p p A you will typically have a three to five year term on that. You will also include not with not only with your compute services, you will include your software purchases from the marketplace as well, and that gets bundled into a further discount savings for you. So that would be on top of any reservations for reserved...

...instances and savings plans that you have out there today. So last question for you give me an oh wow moment. So when when you've when you've been brought into an engagement to you know, try to look at cloud cost reduction. What typically once you deliver that, What are some of the feedback that clients give you. They're extremely impressed with the service that we provide, and they always say that they wish they had come to us sooner because our goal is to just leave you in a better place than when we found you. And we also have like ongoing maintenance to help you with your cloud journey as you continue to grow. So there's various basis of that. So we decided to help customers throughout every single phase of that journey, and cost optimization being one of them. Well, I want to thank you Mary for joining us today to discuss, you know, using a BS savings to invest in innovation.

Any final words of advice for the attendees of Reinvent, So thinking about you know, a CFO or a CIO going to reinvent and starting to think about budgeting for next year. Any final words of advice for them as they attend Reinvent choose your cost optimization vendor. Wisely, we see a lot of clients when they try to do this on their own, they only roughly gained about eighteen percent savings, where using a professional vendor with experience like ourselves, we average our clients around forty percent savings on their compute expenses. So, choose the right vendor to help you on that journey and you should be good. Well how do you choose? I mean, that's that's gonna bring up another question because I think a CFO said, wait, minut you're gonna save me eighteen percent. I'm pretty excited about that until they hear that thirty. So how how does one make a decision around what is the vendor for me...

...to help me embark upon this journey. One that is making sure that you're looking at all the pillars of optimization. You need to make sure you're taking a look at reserved instances and savings plans and targeting forward nine or greater coverage in those, taking a look at your auto parking strategy, and making sure infrastructure and lower level of environments that you're not using let's just say nights and weekends or of turned down you're taking a look at right sizing. You know a lot of customers tend to be over provision and I'm never surprised going into a client and seeing that that's always a given. They're always over provision for what they actually need. And taking a look at family Refresh and seeing what's late, the latest and greatest out there in the marketplace today and taking advantage of that. Also making sure that you're staying on top of waste in infrastructure that hasn't been used in a number of days, and having a really good storage strategy, So those are the pillars of a really good optimization program them...

...and making sure that you're covered on all angles, and then also taking a look out of private pricing agreement if you are going to be able to commit to growth over a number of years. Excellent. Well, thank you, Mary, I appreciate your time this morning, um and to our listeners, thank you for tuning into our show. This video cast is intended to add value to any large enterprise that is planned on moving to or is currently focused on leveraging the value of the cloud. Send your comments or suggestions to cloud crunch at second watch dot com. Thank you everyone. This is Michael Elliott you've been listening to cloud Crunch with Michael Elliott and Fred Bliss. For more information, check out the blog second watch dot com, forward slash, cloud dash block, or reach out to second watch on Twitter and LinkedIn.

In-Stream Audio Search

NEW

Search across all episodes within this podcast

Episodes (43)