SoftServe Provides an In-Depth Cost Optimization Program for a Global Customer Data Management Company

Our client provides a customer loyalty and engagement platform product that gives global brands the tools to build stronger and more profitable customer relationships. Emphasizing customer data and loyalty management, our client can create smarter interactions that drive their customers’ profits.

Our client enlisted SoftServe’s expertise in cloud cost assessment and management to create a cost optimization model that would help their future growth.

Business Challenge

Our client experienced difficulties with growing costs for their cloud environment while suffering from a lack of visibility of their cloud provider’s services. SoftServe helped them to get a complete view of the cloud expenses and cost-per-tenant distribution to accurately calculate the financial effectiveness of their business.

Acting as a Cloud Consulting Partner, SoftServe proposed to perform an initial assessment of the current cloud infrastructure usage and provide a short- and long-term cost optimization plan.

Proposed solution

SoftServe conducted a cost assessment, in which we reviewed a high-level product architecture, processes, technologies, and tools used. After defining the tenant classification, we gave an overview of the operation solution, analyzed the cloud provider’s billing information, conducted an interview with business and technical stakeholders. As a result, we identified proper methods of cost allocation per tenant and potential cost-optimization improvements for direct and non-direct costs, such as non-optimal technology used or licensing models that were not optimized for the current cloud provider. We then delivered an in-depth and prioritized report for short- and long-term strategies and an action plan to decrease the IT operational costs in the cloud.

Furthermore, SoftServe helped our client to execute the short-term optimization strategy. This resulted in a 30% cut of their monthly cloud bill within two months after beginning implementing the cost-optimization recommendations. After the execution of the long-term cost optimization strategy, our client will be able to cut another 10–15% of their monthly operational costs.

Potential savings model

Value Delivered

The value of the cloud cost optimization is in the reduced IT operational costs and enhanced visibility over the cloud Infrastructure for our client. In the long term, it will increase the amount of value that it can deliver to the market by reinvesting saved costs into developing new or improving existing products.

The new model lets our client calculate the financial effectiveness of their current business, and acts as a stepping stone to building its future growth.

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