In a previous blog, we discussed FinOps, a contraction of Finance and Operations. Among other things, FinOps covers how to get maximum value from your cloud investments. Arxus helps companies keep their cloud costs under control through a three-pronged approach that includes workshops, cost analysis and operational advisory services based on Microsoft  Azure native controls. One of the offerings that falls under these FinOps services is the 'no cure, no pay' cost analysis model. In this blog, Ken Kenis, Cloud Solutions Architect at Arxus, elaborates on how to keep your cloud costs manageable, and how to use your cloud environment in the best possible way within your organisation.

Arxus' 'no cure, no pay' model is part of our cost analysis within our FinOps services, where you only pay if we find ways to reduce your costs. In recent years, more and more companies have moved to the Azure public cloud. But while organisations often put a lot of emphasis on the technical adoption side of the move to the cloud, the cost optimisation side is often neglected. And so cloud bills rise almost monthly, and companies have less and less insight into the financial picture.

The 'no cure, no pay' model of cost analysis provides insight and makes adjustments, reducing costs and even making them partly predictable. You can see it as a starting point to quickly map out your Azure environment from a cost efficiency point of view. Those who want to can also turn to Arxus for further managed services after the implementation of this model. Those evaluate your Microsoft Azure environment on a regular basis on a constantly expanding set of recommendations.

Intake and analysis

There are several steps in Arxus' 'no cure, no pay' model, but everything starts with an intake interview and initial analysis where we see if your company qualifies for the process. If we are convinced that we can reduce your cloud bill, we move on to a cost analysis. During that step, we engage with the various stakeholders within your company, and look in detail at your latest Azure invoices and usage. This gives us a view of potential profit items, and we also immediately know who we can validate certain improvements with. 

From the cost analysis comes a set of recommendations that are checked off with the various stakeholders for applicability. These can range from certain services that you can drop off at weekends to reduce costs, to using more cost-efficient services that show you how to become more efficient as an organisation in the future. If stakeholders resist the recommendations, they will come up with areas for improvement in a final report.

Updates and services

The biggest costs depend on your business, yet there are some issues we see recurring regularly. A good example of this are Azure services of which new versions exist in the meantime. The most recent versions are generally more performant and also cheaper. An update can sometimes already provide a lot of savings. 

A second saving can be found within the services that organisations sometimes leave running even though they no longer use them. So by switching off or removing those services, temporarily or otherwise, you can make further savings. Managing a cloud environment requires a different way of thinking compared to a traditional installation where the cost of such an installation is often calculated on its lifespan. So if you no longer use certain services in your cloud environment, it is better to turn them off to further reduce costs.

Cloud reservation

Another aspect we focus on within Arxus is the reservation of cloud services. There are environments that you know you use almost daily. Then it makes sense to reserve those services with Microsoft for longer periods. For this, though, you need to know which services are permanently active and support reservations. During the 'no cure, no pay' cost analysis, Arxus analyses the Azure services you use and calculates from there how many services you can reserve for a longer term in order to be as cost-efficient as possible with your cloud environment.

Break-even point

The business case within the 'no cure, no pay' model is calculated over 2 years, taking into account the time and effort it takes to implement the improvements. We also provide graphs that clearly indicate the break-even points, and sum up the benefits for your company in a report.

The 'no cure, no pay' model is particularly interesting for companies with monthly recurring costs of more than 15,000 euros in Microsoft Azure. Organisations that have started in Azure and find that they lack the time and knowledge to manage the environment cost-effectively can also benefit from this cost analysis model.

If, after an initial analysis, we find that your organisation is not suitable for the 'no cure, no pay' -model after all, you pay nothing for that first check. Afterwards, together we will look for another solution within our range that is better suited to your company, in order to further reduce your costs.

For more information on this offering, contact your sales manager within the Arxus team, or contact us here.