Leveraging the FinOps Framework to optimize cloud costs

Leveraging the FinOps Framework to bring down cloud bills by 26%

the story

The client is a building automation and lighting control market leader, with a product catalogue of more than 15,000 products. During one of the review meetings, they identified an unexpected spike in their cloud spend. While the sudden spike helped them understand that corrective action is required, had they not seen it in time, it may have resulted in approximately $34,000 per month of spending over and above their budget.

The client was leveraging a multi-cloud environment and discovered that a few components that were architected with respect to databases required refactoring to align with the changing business needs. This meant there could be other areas where there was a need to discover and control unpleasant shocks. With Nagarro, the client was able to introduce the FinOps Framework and reduce cloud costs.

the challenge

Teams were mostly reactive to sudden budget overruns dealing with quarter/month-end surprises. Any efforts made to optimize cloud costs were either isolated to just a couple of teams or non-repetitive to make any significant dents in the monthly cloud spend at the organizational level. The feedback loop for cloud cost was exceptionally long or non-existent. Hence, their cloud spend was spiraling high without much control or management.

the solution

We partnered with the client to bring in a thoughtful tagging strategy to allocate all cloud costs and built a custom Showback reporting tool. This enabled accountability across teams and business initiatives. Together, we implemented Policy-as-Code to govern spending and Infrastructure as Code (IaC) to provision resources with approved capacity only. Our FinOps experts also started working towards optimizing the cloud cost incurred on Azure. We implemented the FinOps Framework where accountability/ownership of cloud spend was decentralized and contract negotiations with cloud service providers were centralized.

the outcome

The adoption of FinOps Framework at this basic, crawl maturity level, helped our customer reduce cloud bills by 26% and optimize their cloud cost by approximately USD 360K/year. They were able to minimize the wastage of necessary resources and cut down costs for over-provisioned ones. We helped improve visibility of cloud spend through monitoring and recommended savings plans to purchase reserved instances, bringing down overall cloud spend and ensuring complete cloud transparency.

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Digital Engineering

Intelligent Enterprise

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Optimizing cloud costs

the story

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the solution

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Digital Engineering

Intelligent Enterprise

Experience and Design

Optimizing cloud costs

the story

the challenge

the solution

the outcome

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