IS YOUR IT RIGHT FOR YOU?
FinOps – It will keep your IT motoring…
without the wheels coming off
You wouldn’t rush to buy a car without knowing exactly what you are buying, but are you doing that with your IT?
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Julian Waite
Solutions Consultant Commercial
In our latest Insights article, IT Solutions Consultant Julian Waite discusses why a FinOps assessment will prevent your organisation from overpaying for its IT.
Because, in the same way you don’t need a sledgehammer to crack a nut, or a supercharged 4×4 to do the school run, it’s vital you only pay for what you need.
Imagine you’re buying a car and have to make a quick purchasing decision based on only minimal information.
The type of fuel it takes is unknown. As are the number of doors and seats. The engine size is a mystery, and you’re not able to look beneath the bonnet.
Would you hand over your hard-earned? Probably not…
What does this have to do with FinOps, one of the latest buzz phrases in IT, I hear you ask?
Bear with me, I will get there. And there is method in the madness of this analogy.
GET WHAT YOU NEED
When you buy anything the first thing you consider is whether it does the job.
Does the cap fit? Is that charger going to fit my iPhone? Will the car work for the school run…?
But do you think about the nuance too?
Because whether something works is only part of the answer. It’s whether it’s set up to provide the best possible value that matters most.
You wouldn’t choose an articulated lorry for the school run. And you don’t need a huge 4×4 to run to the supermarket – although try telling that to the people at my local Tesco!
So, you wouldn’t buy those vehicles for that task. But while it’s incredibly unlikely that you’re using an 18-wheeler to take the kids to school, you may well be using an SUV for that trip to buy a pint of milk.
And that’s where, with a FinOps assessment, we can make a massive difference.
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Are you paying for IT infrastructure or licences you don’t use?
Are you unsure if you are? Book a Commercial FinOps assessment.
IS IT RIGHT FROM THE START?
Think back to when your first architected your IT systems and infrastructure. How much attention did you pay to the set-up?
Because in almost every situation I encounter in my job, what you signed up for then, is not what you require now.
Microsoft Azure does have a tool called Migrate to help with the set-up, but the catch is that you really need to know your requirements inside out to use it correctly. And then once set-up, you need to constantly record your usage and then monitor it to see if you’re still rightsized.
Organisations are venting money on systems that are not rightsized, and paying monthly bills for licenses they aren’t using. And because security principles may not be aligned and best practice isn’t being followed The risk of a cyber incident is higher than it need be.
At Commercial, we’ve seen countless cases where just a small fraction of the capabilities of an IT system is being used. So why pay for the extra?
My job is to utilise some pretty nifty software and tooling, apply my knowledge and experience, and then rightsize that environment.
In other words, to take away the gas-guzzling 4×4 you use on the school run and provide you with that nice EV runaround that does the job – and saves you money.
QUESTIONS, QUESTIONS, QUESTIONS…
Before any of the clever tooling we use gets a chance to work its magic, our first step is to speak with the IT team.
Often stretched for both time and resource, it’s important to demonstrate that what we can do is worth their while. And by asking some very simple questions, we can get an idea of where and how changes can be made.
First is to ask how they came to use and deploy the environment they have and most importantly, was it rightsized at the time?
In terms of the analogy, did they buy the car they needed, based on its suitability for the tasks they wanted it to perform.
Quite often the answers are surprising. Often that set-up was nothing more than a stab in the dark around what they thought was needed.
And this is where costs can mount up.
With your cloud resource you pay on a month-by-month basis and according to the usage you have in that contract, not what you require or end up using. And if you’re not using part of that resource, you are overpaying.
A LICENCE TO WASTE MONEY
It’s the same story with licensing. Virtually all of us use M365 and use some of its apps as part of our normal working day.
To a large extent, those apps are being used, and that functionality and access is required. But is that the case across the board?
How do you go about tracking what is and isn’t being used. Or whether that guy who left marketing a year ago, had his licence – which you’re still paying for – cancelled?
Does everyone need to have the full suite of services, because there are ways to streamline the licences and therefore the costs.
Multiply those examples by the number of users you have and you can see – pretty suddenly – how costs can stack up.
When all of your day is spent doing the day job, being able to dedicate resource to a stock take is difficult. Let alone commit to doing so every year, even every month.
And that’s where we can help you. A FinOps assessment will analyse your environment, interpret the data and recommend ways that will not only make you more secure, but reduce costs too.
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SIGNIFICANT SAVINGS
That insight can be used to perform a snapshot of your IT. A point-in-time analysis that will show you where any issues are. That’s phase one.
Think of that as looking beneath the bonnet and performing the MOT.
Phase two is continuing to tune so your engine runs smoothly all the time. Continually optimising your architectural framework while providing Financial and Operational reports.
And if your finance department needed any further encouragement about why this spend is wise, let me give a few numbers that may convince.
Because in recent FinOps assessments I’ve carried out I’ve seen some pretty extraordinary spending waste.
Like £750 per month being spent on a firewall that wasn’t being used. Virtual Machines that cost £500 per month, turned on but not being used.
That’s every month!
A LITTLE KNOWLEDGE CAN GO A LONG WAY
Too often systems are left running when they needn’t be. Like overnight, on weekends or during the Christmas break.
If you’re spending Christmas at the in-laws, you wouldn’t leave your lights, heating and TV on all the time you’re away, would you? So why do the same with your IT?
And even on the things you are using all the time we can use the knowledge we can gain to your advantage.
Because the truth is, that when you were on the forecourt choosing your car, you probably signed up for a pay-monthly financing agreement as that’s what is offered off the shelf by the dealer.
Imagine being offered that finance package with complete assurance that the price won’t change for three years – no interest being paid, no extra charges. Just the same cost.
Because any IT provider loves it if you commit for longer. Once you rightsize, and then say pay for a three-year deal, you will save.
We have the deep-rooted relationships with the tech companies that can be leveraged on your behalf to get those deals.
It’s not an exaggeration to say that a well-planned and deep dive with our tooling. What we call a full FinOps assessment will save you in the region of 20% on your IT costs.
If nothing else, you could ask to turn the saving into a new company car for the fleet– but, please, think about what you buy first!
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