Cloud Cost Management and Optimization for PE and VC-Backed Enterprises


E78 Staff

E78 Staff

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As Private Equity and Venture Backed startups mature into larger businesses with a proven business model, the challenge with managing cloud expenses has become a pain point for the CFO, CIO and PE owners.   These companies have built their businesses from the ground up based on cloud-based technologies like AWS, Azure or GCP.   These solutions are engineered to deliver their products and services and deliver an exceptional customer experience.  

Based on these dynamics, even small, loss-making companies can spend $1M or more a year on cloud-based infrastructure – making it one of the largest Op Ex line items other than salaries.  Basically, these cloud service providers are the “IT Department” for most organizations and the AI frenzy will just exacerbate the challenge.   The question becomes “Are we creating value for our investors through an optimized and well-designed cloud architecture or destroying it through over engineering and a poor pricing model?”

The art and science to answer that question is through FinOps practitioners.  These folks create the bridge between Finance and IT with the expertise to give companies confidence that their cloud costs are well managed, and price/performance is fully optimized.  They speak the language of both IT and Finance.  Unfortunately, they are very expensive, hard to find and hard to retain.  While large enterprises can justify these resources due to their enormous spend, small and mid-sized companies are challenged.  Fortunately, there are ways to manage this challenge without adding headcount at an attractive price point.

Cloud Cost Management & Optimization with E78

That is where the E78 Cloud Cost Management and Optimization (CCMO) practice comes in. Using a powerful technology tool, we automate the ingestion of the enormous volume of cloud cost data that is created on a daily basis and simplify it based on your business rules into an easy to understand dashboard.  With access to FinOps professionals a cadence is established where costs are tracked, anomalies detected, specific recommendations and pricing options are made to lower operating costs.   With E78’s FinOps expertise, companies can bounce ideas off our experts, adopt the latest pricing models and understand areas of opportunity that they did not know existed.

Armed with this knowledge, Finance and IT owners can spend time working together with the business to understand their requirements and ask specific questions regarding usage and activity.  There are always opportunities to fine tune the cloud environment as things constantly change.  This allows IT to focus on service delivery and customer experience and gives Finance the confidence that everything they are paying for is required and fully optimized.   As a fully Managed Service, the E78 solution provides a leading-edge technology platform, access to FinOps experts and a complement (or alternative) to in-house resources at an attractive price point.  Savings of 10% to 25% on cloud costs with no additional headcount is common.

Learn more about E78’s FinOps strategies and cloud cost management by contacting us today.


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