6
6
In the business world, the cloud is a necessity for embracing innovation, offering unparalleled opportunities for growth and transformation. For many companies, the decision to embrace the cloud is not just a leap forward – it's a strategic imperative. Yet despite the positive promises of cloud there lies a series of challenges that need to be tackled.
Let’s take the example of a fictional company, ABC Solutions, that migrated to the cloud and encountered a familiar obstacle: the need for effective cloud cost management.
To efficiently manage the cloud cost they had multiple areas to look after like billing management, cloud cost savings, cloud cost visibility, savings plan/reserved instance management, and embracing FinOps culture. Additionally, they also required managed services support.
ABC Solutions was determined to optimize its cloud cost however, it lacked the resources, tools, and skills to handle the different aspects of cloud cost optimization. Feeling overwhelmed, they considered outsourcing to a third-party vendor. However, they were unsure whether to go for multiple vendors for each aspect of cloud cost optimization.
Each vendor will bring its own set of tools, processes, and interfaces, and they were worried if leading to a fragmented approach that might compound the challenges they faced. They realized that a better option might be to find one Cloud FinOps vendor who could handle all their needs, providing a more organized and integrated approach.
This example was fictional however the research supports a growing trend of organizations prioritizing end-to-end Cloud FinOps Partners.
A recent survey by Everest Group stated that -
- Organizations prefer tools offered by Cloud FinOps solution providers. This preference stems from the underdeveloped Cloud FinOps capabilities in alternative solutions.
- Scarcity of internal FinOps talent leading to reduced efficacy of homegrown solutions.
- 62% prefer RI management providers as they seek assistance in optimizing Reserved Instances (RIs) across multi-cloud environments, while 56% choose consulting and MSP providers as they are looking for more ongoing support in their FinOps journey.
- As the market progresses, cloud FinOps providers with end-to-end capabilities across various areas are expected to gain prominence. The future is all-encompassing.
The Limitations of a Point Solutions
Today, your company might have certain challenges and you found a solution that seemed perfect for solving your immediate problems. Because of this, you might tend to overlook its limitations. But as your business grows it automatically leads to new needs and challenges. You end up spending more money on additional solutions to fill the gaps or wasting time transferring data between systems. Looking back, you wish you had invested in a comprehensive platform from the start, rather than a standalone solution.
This is a typical scenario that happens in the case of a point solution.
Limited Scope: Point solution focuses on one specific objective like cost visibility or Reserved Instance Management. This is the strength of point solutions but also its greatest weakness. Point solutions typically address a single problem or process, which means they may not fulfill all the requirements of a complex organization. Users may need to invest in multiple-point solutions to cover all their needs.
Lack of Integration: Point solutions often work as standalone tools, making integration with existing systems or workflows challenging. This can result in data silos and inefficiencies. When your systems don't work together, you can't see the whole picture of your business. This makes it tough to spot problems and decide what to do next.
Higher Total Cost of Ownership (TCO): While point solutions may have lower upfront costs compared to comprehensive platforms, the cumulative expenses associated with implementing and maintaining multiple solutions can be higher in the long run.
Scalability Issues: If you're aiming for fast expansion, relying on separate solutions to manage cloud financial operations is like trying to hold your team together with duct tape.
A Closer Look at the Cloud FinOps Partner Ecosystem by ISG & Everest Group
Research by ISG stated - “A completely cost-optimized cloud deployment, supported by a reliable and experienced partner is the need of the hour.”
The Cloud FinOps vendor ecosystem is continuously growing, each one contributing and playing a significant role in Cloud FinOps initiatives and growth.
ISG classified the vendors into two categories - Cloud FinOps Vendors by Platform and Cloud FinOps Vendors by Services.
1. Cloud FinOps Vendors by Platform
Vendors in this category represent platforms and SaaS solutions for the implementation of cloud FinOps for enterprises, DNBs, & SMEs.
2. Cloud FinOps Vendors by Services
Cloud FinOps Vendors in this category represent the solution providers with more focus on the service layer, along with platform and SaaS capabilities. These cloud FinOps consulting partners have expertise in functional areas of activity to support their solutions.
Now let’s understand the cloud FinOps vendor classification through the lens of the survey conducted by Everest Group.
Why end-to-end Cloud FinOps Vendors are trending?
The Everest Group survey found that - The current automation-led FinOps tools are falling short of expectations, prompting a demand for a more holistic approach from Cloud FinOps providers.
As you can understand the growing trend toward end-to-end cloud FinOps Service Providers is driven by the need for a holistic approach to cloud cost optimization. By offering comprehensive services, these providers empower businesses to maximize their ROI, streamline operations, and achieve greater success in the cloud.
Furthermore, end-to-end Cloud FinOps Service Providers address this demand by offering a complete suite of services that cover every aspect of FinOps, from consultation to implementation.
These providers are recognized as one-stop solution providers who offer a comprehensive suite of services that cover Cloud FinOps consulting, Savings Plan/Reserved Instance management, and extensive cloud cost visibility into spending. The holistic strategy of these providers goes beyond the limitations of specific solutions.
Investing in an end-to-end Cloud FinOps partner can offer businesses a range of benefits that include:
Unified Cloud FinOps Strategy: By providing a single, streamlined platform for all cloud FinOps activities, these providers simplify operations, eliminate the complexity of dealing with multiple vendors, and enhance efficiency.
Comprehensive Insights: End-to-end Cloud FinOps Service Providers conduct a thorough analysis of cloud expenditure and usage, which helps to uncover in-depth cloud cost optimization opportunities across the entire cloud landscape.
Effortless Integration: Their Cloud FinOp solutions seamlessly integrate with existing cloud setups, ensuring that enhancements are implemented without disrupting operations.
Strategic Guidance: End-to-end Cloud FinOps Service Providers offer expert guidance tailored to the unique needs and goals of each organization. They help businesses navigate complex cloud environments and develop customized strategies to optimize costs effectively.
Enhanced Governance and Compliance: End-to-end FinOps Service Providers implement robust governance frameworks and ensure adherence to industry regulations, ensuring greater cloud governance and compliance across the cloud environment.
Maximizing ROI: The ROI of investing in end-to-end cloud FinOps solutions is significant. By leveraging their expertise and comprehensive approach, businesses can unlock hidden savings, optimize resource utilization, and ultimately drive greater returns on their cloud investments.
In essence, investing in end-to-end FinOps Service Providers can streamline cost optimization efforts and yield significant returns by maximizing efficiency and uncovering hidden savings opportunities.
Why is CloudKeeper an ideal choice for an end-to-end Cloud FinOps partner?
Now that you are aware of why it is important to choose a partner that offers comprehensive Cloud FinOps services, let's understand how CloudKeeper fits the bill.
With over 15 years of extensive experience and as a certified partner of AWS, Azure & GCP, CloudKeeper has a deep understanding of the cloud ecosystem. We optimize every aspect of your cloud journey by combining rate and usage optimization, providing complete cloud visibility, and offering unlimited cloud support, ensuring unparalleled efficiency and cost savings.
If you are interested and would like to explore more on how we can optimize your cloud for long-term efficiency & maximum ROI.
