How NimbleCommerce Improved Cloud Cost Management and Cut Annual Cloud Costs by 46%
For most IT leaders, completing a migration to the cloud isn’t the end of cloud worries. After you migrate, you still may wonder: "What if we go over budget?" "What if we experience performance issues?" "Given the cloud’s complexity, how do get an accurate picture of our cloud so that we can manage our costs?"
These worries are well founded. According to a recent Cloudamize analysis of 77,000 instances over a 3-month period, 42% were over-provisioned (which leads to overspending for more than you need) and 46% were under-provisioned (which leads to performance issues). This analysis highlights the opportunity that many companies have: to reduce costs with active cloud cost management.
After Cloudamize customer NimbleCommerce migrated to the cloud, they wanted to reduce costs-but they couldn’t do it on their own. Thanks to Cloudamize, they were able to reduce their cloud spend by 46% annually. Here’s their story.
An Annual Budget Review Jolts the NimbleCommerce Team Into Action
Migrating to the cloud has worked out well for NimbleCommerce. The ecommerce platform works with some of the world’s largest publishers to create one-of-a-kind shopping experiences for their audiences. The speed and reliability of AWS allows them to deliver a consistently exceptional customer experience.
But in a recent budget review, NimbleCommerce learned what all organizations eventually learn when after they move to the cloud: if you’re not actively managing your cloud costs, they can quickly exceed your budget. NimbleCommerce’s infrastructure team, led by Umang Gopani, Sr. Systems Administrator, realized that they were going over their cloud budget with their current AWS configuration. They knew that they were likely over-provisioned and so they began looking for ways to get their costs under control without sacrificing performance.
NimbleCommerce faced three key challenges:
- The infrastructure team needed to cut their AWS deployment cost significantly-and strategically. They knew that many of their instances were over-provisioned and that they needed to identify the best way to optimally provision their workloads.
- With over 100,000 active merchants and over 23 million subscribers who count on their service, they knew that sacrificing performance in the name of cost reduction was not an option. Any cost reductions they made could not result in a negative impact on customer service.
- Manually analyzing the 150 metrics that organizations need to consider for accurate cloud cost management would take time and resources while also risking inaccurate results, so they needed to find a better way to identify their best opportunities.
Ultimately, the team wanted to reduce their cost while simultaneously keeping to the company’s strict adherence to top levels of performance on production servers. To do that, they needed deep visibility into ongoing cost data without creating significant work for the team-and manual analysis just wasn’t cutting it. The complexity of their operation made it impossible to gain the understanding that they needed if they wanted to reach their goal of cost-performance optimization.
NimbleCommerce Leverages Automated Data Analysis
NimbleCommerce’s situation was not unusual. Although companies may accurately right-size their cloud before they migrate, changes to both company needs and the cloud itself mean that the original configuration often becomes out of date. When NimbleCommerce found that their capacity exceeded their actual usage and their cloud was no longer right-sized, they turned to Cloudamize for automated data analysis and quickly configured their environment.
By leveraging ongoing automated data analysis, NimbleCommerce was adopting an active management approach, as opposed to the legacy passive approach that many IT leaders bring from on-premises infrastructure management. The automated approach meant that they were able to get a clear picture of their cloud quickly. Instead of taking months for manual analysis where the team risked missing key data, Cloudamize’s automated performance analysis, automated usage analysis, and automated cloud configuration mapping helped the company identify a better way to provision their instances in the cloud in less than a week. It also helped NimbleCommerce avoid overlooking critical areas that would result in under or over-provisioning leading to either overspending or performance issues.
A week following implementation, Umang Gopani’s team had a set of actionable recommendations to optimize their AWS deployment that included both the steps and supporting economics to manage their cloud costs. The Cloudamize analysis extended to the instance level based on detailed performance data and provided NimbleCommerce with a high degree of certainty to act on the recommended changes. Those recommended changes were:
- Reduce specific servers where they were over-provisioned
- Utilize optimal pricing plans across assets
- Increase the size of individual servers to meet established performance goals
Automated Data Analysis Reduced Annual Cloud Costs by 46%
With the Cloudamize platform, NimbleCommerce identified critical actions to realize significant reductions in their AWS spend, developed a roadmap to bring all instances into an optimal performance range, and reduced the time spent planning for future scenarios to minutes.
After NimbleCommerce implemented Cloudamize’s recommendations, they experienced great results:
- 46% identified cost reduction of instances
- 79% with optimal performance reduction
- 85% in time to plan infrastructure
Automated data analysis helped NimbleCommerce address their main cloud cost management challenges with the certainty of knowing that they were performing accurate analysis. "With Cloudamize, we've optimized our current AWS deployment and we're now able to make confident planning decisions to support our business needs," said Gopani. And thanks to automated data analysis from Cloudamize, NimbleCommerce was able to avoid common pitfalls of passive cloud cost management such as surprise bills and cloud sprawl.
To learn more about how you can avoid missing critical cloud insights due to the complexity of the cloud and how to turn data into meaningful insights that can power more effective cloud cost management, see a demo of Cloudamize.