Cloud optimization with CloudKey
Organizations should always anticipate important cloud developments. With increasing numbers of systems that used to be on-premise now moving to the cloud, the financial impact of the cloud within an organization is growing. In addition, companies are increasingly opting to use multiple cloud solutions simultaneously, also known as multicloud. Whichever option you choose for the design of your cloud environment, make sure to organize it in the best way possible to keep costs low.
We encounter two main challenges when it comes to the cloud:
- Finding the right scale
This means determining the right resources and computing power for your organization in the cloud.
- Maintenance of your cloud
This means keeping track of what is running in your cloud. For example, look at what you are not using, or what you thought to be deleted but is still active and thus is costing you unnecessarily.
CloudKey as a solution to Cloud challenges
There are many options for setting up your cloud environment. It might seem hard to find the perfect way to do so for your organization. Finding the right scale and maintaining your cloud environment might pose challenges. In addition, existing tools often do not provide the in-depth insights needed to really achieve cost savings. To solve these issues, LCxp has developed the cloud service CloudKey. With CloudKey you can gain these insights and reduce costs.
Why optimize IaaS with CloudKey?
CloudKey provides insights into your cloud infrastructure. You know exactly what is going on in your cloud environment and you see instantly which processes can be switched on or off. This way you can identify scale-issues and thus eliminate unnecessary costs.
Being used to traditional IT environments, companies might be tempted to reserve plenty of space in their cloud. But cloud environments make scaling up or down much easier. It is therefore important to determine the right scale for your company and to anticipate changes within your organization.
It might happen that you have processes running in your cloud that offer no added value – but they do cost you money. Cleaning up your cloud is important here: you are literally cleaning up things that are no longer necessary. Ask yourself: why is this element running, which online location has been assigned, or is this process necessary for my daily business operations and activities?
“Organizations tend to look at this completely new environment from a traditional perspective. When renovating your bathroom, you don’t simply put your old shower head back up again, because you still won’t save on water and costs. To achieve that, you also need a water-saving shower head. That is also how it works in the cloud. You can only work cost-effectively when you optimize your workloads. That means deciding whether workloads as they are running are efficiently and optimally arranged.”
CloudKey lets you interpret data on the next level
Big providers such as Azure, Google, and AWS all offer optimization portals. So, what is the added value of CloudKey? Simply put: our independent advice offers you more opportunities to save money.
The traditional portals do indeed provide a general overview of your cloud consumption. You will receive limited information. If they were to release full insights and analytics, cloud providers would create a conflict of interest with their main activity. That is why these portals do not elaborate on ways to optimize or reduce your usage. They only give you a sneak preview. When we as independent party carry out a scan, we often find many more ways to save on a cloud environment.
Are you looking for relevant cloud environments for your organization? Use our accessible Cloud Migration Assessment to quickly and easily gain insights into your on-premise environment and see which Cloud Solution Provider is the best fit for you.
Our CloudKey step-by-step plan has three parts:
A benchmark of your current infrastructure to gain insights into the current cloud environment.
Cloud Deep Dive
By optimizing your environment, you will maximize resources, resulting in a lower cloud spend.
Cloud Managed Services
We provide continuous insight and make adjustments wherever necessary. With CloudKey, we help you optimize your budget and substantiate your decisions with data.
This way, you are always able to control the costs of your cloud environment and to make optimal use of the advantages of the cloud.
Cloud Scoping, Deep Dive and Managed Services
- Cloud Scoping
Are you already using a cloud environment, if only for a few months? That allows us to check the underlying IT infrastructure for potential savings.
In the scoping, we make a high-over scan of your organization. With CloudKey’s AI-tooling and our extensive IT experience, we show you what you are spending and what is needed for your company. This way, you immediately see the potential savings.
On average, the scope consists of a two-week scan. We look at consumption from the start of your cloud usage and forecast the usage of the near future. Major players in the market usually only look back 90 days. But if, for example, you have been running your cloud environment for 4 years, LCxp will take all that data into account to show you all possibilities.
We mainly look at the growth in usage and the associated costs. An example: we see that your cloud environment grew by 10% 2 years ago, and is currently 40% larger. We will look into the differences, with the help of your cloud team and specialists. We use AI in the cloud scoping with CloudKey to look at the growth in previous years. If your organization is fast-growing, it is good to predict to what extent you need to scale-up. We want to be sure in our predictions: that is why we will keep measuring and continue to respond to changes.
As a general scan, the scope provides better insights into your cloud environment. A deep dive will show you in detail where the real saving opportunities lie. We perform a deep dive with the help of your IT managers, solution architects and cloud specialists to achieve the best results.
In the Deep Dive, we will further explore the opportunities that we noticed in the scoping. Again, we take two weeks to do so. That allows us to consult with your experts about the choices in IT architecture.
We identify what is being consumed and what is normal in terms of consumption. Some applications might require more than the average resources. We identify this use and check whether it was intentional or not. By talking to your IT specialists, we test whether the savings we identify are truly applicable to your organization. There might be machines or applications that are crucial to your company, that we are unaware of. As our client, you can of course always decide for yourself which or our recommendations you want to implement. We just help you make conscious choices.
- CloudKeyManaged Services
By optimizing the cloud environment, you maximize the resources and ultimately reduce the costs of the cloud. Based on the standard billing terms for cloud costs (usually quarterly), we perform monthly or quarterly analysis of your IT environment and the changing resources with our CloudKey Security Plan.
If your contract has a longer term, we still recommend to monitor your cloud environment actively. The added value of the cloud lies in being able to act quickly and anticipate organizational changes. Making changes to optimize your cloud always has its upsides.
Business case – financial institution
We have realized cost savings for various customers. We also helped them with software contract negotiations. For example, we helped a financial institution and a large Dutch drinking water company.
Saving over half
At a financial institution with a team of over 20 cloud specialists, expectations for savings were low. With our scan, however, we showed a savings potential of over 55% of their total costs. With our CloudKey scan, we can not only provide insights into your usage, but we also support your IT department. In this case, the outcome of the scan led to new insights about their cloud infrastructure.
Contract negotiations and better terms
We supported a Dutch drinking water company negotiate a three-year contract with Microsoft. Using our CloudKey scan, we compared actual and relevant consumption in Azure. We found savings that would have relatively little impact on the organization’s processes. With our analysis, we identified a savings potential of more than 10.000 euros per month (120.000 euros in the first year). For this three-year contract, we achieved a total savings of 360.000 euros.
Thanks to the insights into the actual need, the organization was able to prevent inefficiently scaled resources from being put into contract. With this type of contract, virtual machines are often booked for the total duration of the contract. Because the organization knew exactly what it needed, the company was able to negotiate strategically and thus get the most out of their contract.