Gartner’s 3 Moves to Lower Business Costs and How CloudHealth Can Help

09.08.17
Rachel Dines
Director of Product Marketing

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Speed and agility. Innovation. Improved performance. Cost savings. These are four of the top drivers cited by CIOs for adopting the public cloud. All too often, however, companies miss out on maximizing their cost savings in the public cloud. Because this is one of the easier metrics to measure (if you've figured out how to measure agility, please get in touch!) this becomes one of the flagship metrics executives look at to judge the success of a cloud implementation.

Gartner estimates that organizations that have done little or no cloud cost optimization are overspending by 70% or more.

As it turns out, simply moving to the public cloud, without changing your infrastructure or processes, you likely won't achieve the cost savings you expect. In fact, Gartner estimates that organizations that have done little or no cloud cost optimization are overspending by 70% or more. If you're an IT leader who is looking for ways you can reduce spend in the public cloud, you must embrace much more than the new technologies: people and process are critical to success! This is why I was pleased to discover that Gartner had tackled this topic in their report 3 Moves for CIOs to Lower Business Costs With Cloud. The best practices they outline closely match what I've seen our most mature customers implement in their own organizations. Let's dive in explore each of Gartner’s 3 “moves” and how CloudHealth can help!

 

Move 1: Establish a cost center of excellence (CCoE)

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The sheer number of cloud sourcing options can be overwhelming to even the most knowledgeable IT professionals. For Amazon EC2 alone, there are more than 1.7 million combinations of availability zones, instance types, image types, and purchase options to choose from. Because of this, you must establish a dedicated team to serve as a bridge to influence strategic buy-in across business units. Gartner advises that organizations should establish a cloud center of excellence (CCoE), comprised of at least one cloud architect, two FinOps staff, and two automation engineers with DevOps and cloud expertise. Initial CCoE projects should focus on invoice consolidation, tagging, reporting, and cost optimization.

For many of our customers, CloudHealth is the critical hub of the CCoE. It provides your CCoE team with a single pane of glass for optimizing costs across even the most complex hybrid or multi-cloud environments. CloudHealth Recommendations identify optimal sourcing options for your AWS, Azure, Google Cloud, and Data Center environments. Meanwhile CloudHealth Perspectives provide the tagging capabilities needed to filter reports and group assets for proper analysis and optimization.

 

Move 2: Lay out a compelling initial vision and get stakeholder buy-in

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Many folks consider "we have always done it this way!” to be the seven most expensive words in business. Human nature dictates that people are inclined to stick with what’s familiar and seems to be working unless they have a compelling reason to try a new approach. To get stakeholders on board with cost optimization initiatives, you need to tell a compelling story.

One way to call your colleagues to action is to demonstrate how their actions translate into costs for the organization. According to the Gartner report:

“Measuring IT cost efficiency is, of course, important for ensuring that the services provided back to the business are cost-effective and cost-competitive. The FinOps team (again an extension of the CFO) are responsible for tracking overall costs, as well as IT per unit cost efficiency.”

CloudHealth helps customers view their cloud infrastructure through a business lens, getting visibility into who is consuming what resources, and what actions they could take to reduce spend.

 

Move 3: Invest in automation, set targets, and set firm ground rules

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As strong as your vision may be, you’ll have difficulty bringing it to fruition without state-of-the-art automation solutions and a baseline set of policies in place. Gartner advises that

“Ensure that the resources brought on spend at least 50% of their time on what the automation engineering team is actually automating. Anything less means they are firefighting and mired in historical I&O practices.”

CloudHealth provides a policy-driven automation and governance, making it easy to define and enforce policies. In addition to saving time, enabling rapid action, and streamlining decision-making, these policies provide a hassle-free way to prevent costs from escalating under the radar. This also gives your CCoE a platform to drive decentralized management, while maintaining centralized governance.

CloudHealth Technologies provides organizations with the tools to build a dynamic, optimized system that continually gets smarter thanks to our integrated recommendations, making it easy to implement Gartner’s 3 Moves for CIOs to Lower Business Costs With Cloud, a comprehensive framework for lowering their IT costs with the cloud.

 

Lay the groundwork for IT cost optimization with Gartner’s full Three Moves for CIOs to Lower Business Costs With Cloud report.

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