In a previous post, we talked about wasted cloud infrastructure spending and the need for tools to help customers optimize that spend. Customers often receive large bills for their cloud services without being aware of exactly how and why they’re overspending.
As infrastructure as a service (IaaS) continues to grow, resellers are faced with the challenge of optimizing cloud costs for their customers.
IaaS billing challenges
Resellers have a tough time generating an IaaS invoice for customers, whether it’s combining various vendor and distributor invoices or manually reviewing a large amount of discounted data.
For example, the information and format from different distributors and vendors may be varied and inconsistent. Resellers often invest in third-party tools to clean up the data, but then they have to move the data from a spreadsheet to another output.
Another reconciliation problem is the gap between vendor billing dates and reseller billing dates. In addition to different billing dates, the amounts per billing cycle can change based on cloud-resource consumption.
With an overwhelming amount of data to review, it’s easy to get lost among the hundreds of rows of information that need to be compiled for a single customer, resulting in invoices that are prone to errors. This manually intensive work must be done for each customer in every billing cycle, leading to a lot of frustration with billing.
Cost optimization challenges
Eighty percent of customers overshoot their IaaS budget by 70% or more in the first 18 months, according to Gartner. In looking at the lack of visibility on consumption, it’s easy to see why.
Vendor invoices show only overall consumption without any details per customer. Resellers need to see a breakdown of each resource (such as compute, database and network usage) per customer by the hour before they can begin to optimize their customer’s cloud costs.
Without visibility into the customer’s cloud environment and workload, resellers can’t see why costs change from one month to the next or provide strategies for reducing costs and downscaling underutilized resources.
End customers end up over budget from the start. When migrating to the cloud, up to 45% of customers overprovision resources by as much as 55% or more because of their inability to first analyze and accurately map out the resources needed on cloud, according to Gartner. Once they’re in the cloud, many customers don’t know what needs to be done next to reduce their total IaaS spend.
Many resellers don’t yet have the technical knowledge and expertise to perform cost-optimization activities before migrating their customers to the cloud. They also may not know which resource to turn off once the customer is already consuming IaaS services.
New cost optimization services
Analyzing IaaS consumption and optimizing costs is no longer an impossible task for resellers. Ingram Micro Cloud has introduced cost optimization services as a part of the IaaS suite of managed services. These services provide access to a cost-management tool that can view and analyze the customer’s cloud consumption. This tool is free for partners with customers on Microsoft Azure and Amazon Web Services (AWS) from Ingram Micro Cloud.
With the ability to easily monitor the customer’s cloud-resource consumption, track data insights and analyze the customer’s IaaS spend, resellers can simplify their billing processes and help customers identify cost-saving opportunities.
Ingram Cost Optimization Service is available at two levels: Standard and Premium. The Premium level features consulting from our team of expert, certified architects who will perform an in-depth analysis and make recommendations on infrastructure changes to reduce your costs and help you make better decisions on IaaS spending.
To learn more about our cost optimization services, visit our page on Ingram Micro Cloud Marketplace.