Stop Overpaying for Cloud: 7 Expert Tips on Implementing

Posted on December 13, 2024September 11, 2024 by dingusandzazzy

Hey there, cloud champions! If you’re anything like me, you’ve probably stared at a cloud bill and wondered if you’ve accidentally funded a small country’s infrastructure. Cloud costs can spiral out of control faster than a toddler on a sugar rush. But fear not! Today, we’re diving into how you can use FinOps cloud optimization to get a grip on those runaway costs.

As an IT Asset Manager, I’ve been down this road, juggling software and hardware like an ambitious circus performer. And let me tell you, applying FinOps cloud optimization principles is like discovering the secret menu at your favourite restaurant. So buckle up, and let’s stop overpaying for the cloud!

What is FinOps Cloud Optimization, and Why Should You Care?

FinOps cloud optimization is like the superhero team of finance, IT, and business units, all working together to tame the cloud cost beast. Imagine a room where your finance folks, tech gurus, and business strategists are talking to each other. That’s FinOps cloud optimization in action. It’s all about transparency, collaboration, and accountability.

In the world of cloud, costs can rack up quickly. Without a solid strategy, you’ll lose yourself in a maze of billing statements and surprise charges. FinOps cloud optimization helps you bring order to this chaos by creating a structured approach to manage and optimize cloud spending.

Tip 1: Establish Clear Cloud Cost Visibility

Why Transparency is Key

Have you ever tried to lose weight without stepping on a scale? It’s like shooting in the dark. The same goes for cloud costs. If you can’t see where the money’s going, you can’t control it. I remember one client who had no idea they were paying for storage they hadn’t touched in months. It’s like finding out you’ve been paying rent for an apartment you forgot you had.

How to Shine a Light on Your Cloud Costs

Use Cloud Cost Management Tools: Tools like AWS Cost Explorer or Azure Cost Management can provide real-time insights into your cloud spending. They’re like your financial binoculars, letting you see where every dollar goes.
Implement Tagging Strategies: Tagging your resources is like putting labels on your pantry jars. It helps you know what’s where and who’s using what. This makes it easier to allocate costs and see who’s responsible for that hefty data transfer bill.

Tip 2: Define Usage Policies and Controls

Setting Boundaries for Cloud Usage

Without boundaries, cloud usage can spiral out of control. I once worked with a team that didn’t have any usage policies in place. Developers were spinning up instances left and right like they were free samples at Costco. It was a mess.

How to Reign in Cloud Usage

Set Clear Policies: Define who can provision cloud resources and under what conditions. This isn’t about being a killjoy; it’s about keeping costs in check.
Use Automation Tools: Automation can be your best friend here. Tools like AWS IAM or Azure Policy can enforce your usage policies and prevent unauthorized resource creation.

Tip 3: Optimize Cloud Resource Utilization

The Cost of Unused Resources

Ever heard of “zombie servers”? These are cloud resources that are up and running but not doing anything useful. They’re like having a gym membership you never use but still pay for every month. It’s a common problem that can drain your budget fast.

Strategies for Optimizing Resources

Conduct Regular Audits: Schedule regular audits to find and eliminate these idle resources. Tools like CloudHealth or CloudCheckr can help you identify underutilized instances.
Implement Autoscaling: Autoscaling adjusts your resource usage based on demand. It’s like having a thermostat that only heats the house when you’re home, saving energy and money.

Tip 4: Embrace Reserved Instances and Savings Plans

Why Commit to Reserved Instances?

Reserved instances are like buying in bulk at Costco – you commit upfront but get a significant discount. When implementing FinOps cloud optimization, I was skeptical about committing to reserved instances. But the cost savings turned out to be a game-changer.

How to Make the Most of Reserved Instances

Analyze Your Usage Patterns: Use historical data to predict future usage. This helps you make informed decisions about how many reserved instances to purchase.
Optimize Your Purchase Strategy: Mix reserved instances with on-demand and spot instances to maximize flexibility and cost savings. It’s like having a diversified investment portfolio.

Tip 5: Leverage Cost Allocation and Chargeback Models

Allocating Costs Effectively

One of the best ways to control cloud costs is to allocate them accurately. It’s like splitting the dinner bill with friends – everyone pays for what they ordered. I’ve seen organizations that lump all cloud costs into one bucket, which makes it hard to see who’s overspending.

Implementing Chargeback Models

Set Up Cost Allocation: Use tagging to allocate costs to different departments or projects. This creates accountability and encourages teams to think twice before provisioning new resources.
Use Chargeback or Showback Models: Chargeback directly bills departments for their usage, while showback simply shows them the costs. Both methods can drive more responsible behaviour and cost awareness.

Tip 6: Implement Continuous Monitoring and Reporting

The Power of Real-Time Monitoring

Monitoring your cloud costs isn’t a one-time thing. It’s like checking your bank account regularly to avoid overdrafts. Continuous monitoring helps you catch and correct issues before they become expensive problems.

Tools for Effective Monitoring

Set Up Alerts and Dashboards: Use tools like CloudWatch or Azure Monitor to set up alerts for unusual spending patterns. Dashboards can give you a quick overview of your costs and trends.
Regular Reporting: Generate reports to track spending and identify areas for improvement. Share these reports with stakeholders to keep everyone informed and accountable.

Tip 7: Foster a Culture of FinOps Cloud Optimization Collaboration

Why Collaboration Matters

FinOps cloud optimization isn’t a solo act; it’s a team sport. I’ve worked in environments where IT, finance, and business teams were like ships passing in the night, completely out of sync. FinOps cloud optimization bridges these gaps, bringing everyone together to achieve common goals.

Building a Collaborative Culture

Promote Cross-Functional Teams: Create teams that include members from IT, finance, and business units. This fosters better communication and understanding.
Invest in Training: Provide training on FinOps cloud optimization principles and tools. This ensures everyone knows how to manage cloud costs effectively and encourages a culture of continuous improvement.

Conclusion: Taking Control of Your Cloud Costs

By following these seven expert tips, you can stop overpaying for your cloud services and start making your cloud budget work for you. FinOps cloud optimization is all about transparency, accountability, and collaboration. It’s not just a strategy; it’s a culture change that can lead to significant savings and better resource management.

So, are you ready to take control of your cloud costs? Start implementing these tips today, and watch as your cloud expenses shrink and your efficiency soars. And if you need some guidance along the way, feel free to reach out for a free consultation. Let’s turn your cloud costs from a mystery into a masterpiece!

Revolutionize Your Business: Why AI Cloud Storage Optimization is a Game Changer!

Posted on November 13, 2024September 10, 2024 by dingusandzazzy

Hey there, fellow cloud warriors! Are you ready to dive into the future of cloud storage? Today, we’re exploring a game-changing innovation that’s set to transform how businesses manage their cloud environments: AI cloud storage optimization. As an IT Asset Manager specializing in cloud optimization, I’ve seen firsthand how AI revolutionizes storage efficiency, slashes costs, and boosts performance. Buckle up because this could be the game-changer your business has been waiting for!

What is AI Cloud Storage Optimization?

Unlocking the Power of AI

Let’s start with the basics. AI cloud storage optimization harnesses the power of artificial intelligence to analyze, manage, and optimize your cloud storage resources. It’s like having a supercharged assistant that constantly monitors and adjusts your storage needs in real time. Traditional methods often fall short, relying on manual interventions and periodic reviews. AI changes the game by offering continuous optimization based on data-driven insights.

How AI Transforms Cloud Storage Management

Automated Data Management

Imagine having a system that automatically categorizes and prioritizes your data storage needs. AI does just that. It streamlines tasks like data migration, backup management, and storage allocation. This automation saves time and reduces the risk of human error. For instance, at a previous company, implementing AI for data backup reduced our administrative workload by 30%, allowing us to focus more on strategic initiatives.

Predictive Analytics and Cost Forecasting

One of the standout features of AI in cloud storage is its ability to predict future needs and costs. By analyzing historical data and usage patterns, AI can accurately forecast storage requirements. This proactive approach empowers businesses to plan budgets more effectively and avoid unexpected spikes in cloud costs. I’ve seen companies cut their storage budgets by up to 50% simply by adopting AI-driven cost forecasting tools.

Intelligent Resource Allocation

Gone are the days of over-provisioning or under-utilizing cloud resources. AI optimizes resource allocation based on real-time demand and workload patterns. It dynamically scales up or down your storage capacity, ensuring optimal performance. This flexibility is crucial for businesses with fluctuating storage needs, allowing them to scale seamlessly without unnecessary expenses.

Business Benefits of AI Cloud Storage Optimization

Why AI is a Game Changer

Talk business—why should you care about AI cloud storage optimization? Well, besides the obvious cost savings, AI enhances operational efficiency. Imagine your IT team spending less time managing storage and more time innovating and driving business growth. That’s the power of AI at work. It also improves data security and compliance, protecting your sensitive information and meeting regulatory standards.

Case in Point: Cost Savings

Speaking of savings, let me share a story. A company I worked with implemented AI for cloud storage optimization and saw immediate results. They cut their annual storage costs by 40% by identifying redundant data and optimizing storage usage. That’s money they could reinvest into other business areas—talk about a return on investment!

Operational Efficiency Boost

Another benefit? Enhanced operational efficiency. With AI handling the heavy lifting of storage management, teams can focus on strategic initiatives. This shift from manual to automated processes speeds up decision-making and improves overall productivity. It’s a win-win for IT departments and business leaders alike.

Scalability and Flexibility

In today’s dynamic business environment, scalability is critical. AI enables businesses to scale their storage solutions effortlessly. Whether experiencing rapid growth or seasonal fluctuations, AI ensures you have a suitable storage capacity without overspending. I’ve seen firsthand how businesses that embrace AI are better prepared for growth and market changes.

How to Implement AI Cloud Storage Optimization

Steps to Success

Ready to harness the power of AI for your cloud storage needs? Here are the steps to get you started:

Assess Your Current Setup

Begin with an audit of your existing cloud storage environment. Identify inefficiencies, redundant data, and areas where AI can impact most. This initial assessment sets the stage for targeted optimization efforts.

Choose the Right AI Tools and Solutions

Not all AI tools are created equal—research and select tools that align with your business goals and technical requirements. Look for features like predictive analytics, automated resource allocation, and robust security measures.

Develop an Implementation Plan

Plan your AI integration strategically. Define clear objectives timelines, and allocate resources accordingly. It’s essential to get buy-in from stakeholders and ensure your team is equipped with the necessary skills to manage AI-driven solutions.

Train Your Team

Invest in training programs to familiarize your team with AI tools and best practices. Empower them to leverage AI for maximum efficiency and effectiveness. Continuous learning is critical to optimizing your cloud storage strategy over time.

Monitor and Optimize Continuously

AI is not a set-it-and-forget-it solution. Regularly monitor AI performance metrics and adjust your strategy as needed. Stay proactive in identifying new opportunities for optimization and cost savings.

Challenges and Considerations

Navigating Potential Roadblocks

While AI offers tremendous benefits, it’s not without its challenges. Integration complexity, initial costs, and data security concerns are common hurdles businesses may face. However, these challenges can be overcome with careful planning and the right expertise.

Embrace the Future with AI Cloud Storage Optimization

In conclusion, AI cloud storage optimization isn’t just a buzzword—it’s a strategic advantage that can transform your business operations. From cutting costs and boosting efficiency to enhancing scalability and flexibility, AI empowers businesses to thrive in a competitive landscape. So, are you ready to revolutionize your cloud storage strategy with AI? Start your journey today and unlock the full potential of your business!

Damage Control: Navigating Software Renewals in Late 2024 and 2025

Posted on August 15, 2024October 28, 2024 by Hailey Austin

It's no longer about reducing costs on Software renewals - it's about minimizing the price increases you will see.

Introduction:

As the software landscape continues to evolve, the dynamics of negotiating renewals with major vendors have shifted dramatically. Gone are the days when organizations could confidently walk into a negotiation expecting to secure significant discounts. Today, the focus has shifted from reducing costs to minimizing inevitable price increases. For the remainder of 2024 and into 2025, the primary objective for any organization is not just about cutting deals but about strategic damage control.

The reason for this shift is simple: software vendors have become more assertive, data-driven, and sophisticated in their approach to renewals. Whether you’re dealing with Microsoft, Broadcom, VMware, Oracle, or Adobe, the playbook has changed, and so must your strategies.

1. The Shift from Cost Reduction to Minimizing Increases

Historical Context

In the past, the focus during software renewals was often on reducing overall costs. Organizations would leverage their purchasing power, threaten to switch vendors, or use other tactics to negotiate better terms. However, the tide has turned. Vendors like Microsoft have invested heavily in training their commercial teams to be more assertive and less willing to concede discounts. The days of expecting a 20% discount just for asking are over.

Vendor Tactics Evolution

Microsoft and other major vendors have adopted a more strategic approach to renewals. They are now employing tactics such as ramped discounts, which gradually reduce over time, and multi-level selling, where they engage with various departments within your organization simultaneously. This approach not only creates internal pressure but also makes it harder for the IT department to control the narrative.

Additionally, vendors are leveraging their data on your consumption patterns to strengthen their position. For example, if you’re a heavy user of Azure or Microsoft 365, Microsoft knows this and will use it to justify price increases.

Industry-Wide Impact

This trend is not limited to Microsoft. Vendors across the board have become more aggressive in their renewal strategies. Broadcom’s acquisition of VMware has led to significant price hikes, with some customers facing increases of 300-400%. Oracle has changed its Java licensing from a free model to a paid one, significantly increasing costs for many organizations. Adobe, too, has moved away from perpetual licenses, pushing customers toward higher-priced subscription models with AI integrations.

Expanded Case Study: Microsoft’s Multi-Level Approach

A mid-sized manufacturing firm recently faced a challenging renewal process with Microsoft. While the IT department was in the midst of negotiating an Azure renewal, Microsoft’s sales team simultaneously engaged the finance and operations departments, pitching the benefits of the Power Platform. This multi-level selling strategy created pressure on the IT team as other departments began pushing for a quick resolution. Ultimately, the firm had to settle for a smaller discount than anticipated, illustrating how Microsoft’s tactics can disrupt internal alignment and lead to less favorable outcomes.

2. Preparing for Negotiations: Data as Your Strongest Asset

Deep Dive into Data Preparation

In today’s negotiation environment, data is your most powerful tool. The more informed you are about your software usage, licensing, and future needs, the better positioned you will be to counter vendor tactics and minimize price increases.

Inventory and Usage Analysis:
Start with a comprehensive audit of your current software usage. This includes identifying all licenses in use, evaluating underutilized or redundant licenses, and understanding consumption patterns across the organization. Tools like Microsoft’s License Statement (MLS) or third-party SAM tools can be invaluable in gathering this data.

License Optimization Strategies:
Once you have a clear picture of your software inventory, the next step is optimization. This could involve consolidating licenses to reduce overlap, switching to subscription models where appropriate, or exploring alternative vendors for specific functionalities. For example, if you’re using expensive on-premises software, consider whether a move to the cloud could offer long-term savings.

Technical Optimization:
Beyond licensing, look at the technical aspects of your software environment. Are there opportunities to reduce costs through technical optimization? For instance, in cloud environments, reducing sprawl, right-sizing workloads, and implementing automation can lead to significant savings. These technical optimizations can then be used as leverage during negotiations.

Building a Negotiation-Ready Dataset

To effectively negotiate, you need to build a dataset that supports your position. This dataset should include detailed usage statistics, license costs, projected growth, and potential savings from optimization efforts. Presenting this data to vendors not only shows that you’re well-prepared but also provides a factual basis for your requests.

Example: Data-Driven Negotiation Success

A global retail chain preparing for its annual software renewal with Microsoft conducted a thorough audit of its Azure environment. By identifying underutilized resources and optimizing workloads, the company uncovered over $500,000 in potential savings. Armed with this data, the company entered negotiations with Microsoft and was able to secure more favorable terms, significantly reducing the expected price increase.

3. Understanding and Countering Vendor Tactics

Detailed Analysis of Vendor Tactics

Vendors are using a variety of tactics to maximize their revenue during renewals. Understanding these tactics is the first step in countering them effectively.

Microsoft:
Microsoft’s approach to renewals often involves staged discounts, where initial discounts are offered only to be reduced in future renewals. Additionally, Microsoft is known for leveraging high-usage data to justify price increases, particularly in cloud services like Azure. They also impose penalties for late renewals, such as a 3% price increase, to pressure customers into agreeing to terms quickly.

Broadcom & VMware:
Following Broadcom’s acquisition of VMware, customers have seen a dramatic shift in pricing strategies. The move from perpetual to subscription licenses has led to significant price increases, with some organizations facing 300-400% hikes. Broadcom has also simplified VMware’s licensing models, reducing the number of SKUs but bundling products together, making it difficult for customers to purchase only what they need.

Oracle and Adobe:
Oracle’s Java licensing changes have caught many organizations off guard. What was once a free product now requires licensing based on the number of named users or processors, leading to higher costs. Adobe, on the other hand, has transitioned to subscription-only models and integrated AI into its products, which has increased prices and reduced customization options for customers.

Counter-Tactics

To counter these vendor strategies, organizations need to be proactive and strategic in their approach.

Data Leverage:
Use your consumption data to counter vendor claims. For instance, if Microsoft argues for a price increase based on high usage, counter with data showing optimization efforts that reduce that usage. This not only weakens their position but also shows that you’re actively managing your software environment.

Negotiation Framework:
Develop a clear framework for negotiations that includes your data analysis, understanding of vendor motivations, and potential concessions. For example, if you know that Microsoft is pushing a new product like Co-Pilot, consider negotiating for discounts on existing products in exchange for adopting the new product.

Escalation Strategies:
Don’t be afraid to escalate negotiations if necessary. This could involve engaging higher-level executives within your organization who have relationships with the vendor or even considering a temporary shift to alternative solutions as a bargaining chip.

Case Study: Facing 300-400% Increases with VMware

A Utilities company recently faced a daunting challenge when renewing its VMware licenses. They were initially presented with a 300% price increase due to VMware’s transition to subscription licenses under Broadcom’s ownership. However, by leveraging data from a detailed usage analysis, exploring alternative solutions, and re-architecting, they were able to negotiate a lower price increase, ultimately settling on a 150% hike. While still significant, this was a far better outcome than initially proposed.

4. Strategic Negotiation Approaches for 2024-2025

Developing a Comprehensive Negotiation Playbook

In the current environment, it’s essential to approach negotiations with a well-prepared playbook. This playbook should include everything from role assignments to escalation pathways and should be tailored to your organization’s specific needs and vendor relationships.

Role Assignments:
Assign specific roles within your negotiation team. This includes a Single Point of Contact (SPOC) who will manage all communications with the vendor, ensuring consistency and clarity. Other roles might consist of a data analyst, a technical expert, and a financial officer, all working together to build a strong negotiation position.

Escalation Pathways:
Develop a clear escalation plan for when negotiations hit a roadblock. This could involve escalating the issue within your organization, bringing in senior executives to engage with the vendor, or even exploring alternative vendors if negotiations stall. Understanding the vendor’s internal hierarchy and knowing when to engage higher-ups can also be an effective strategy.

Negotiation Framework:
Create a framework for structuring your negotiations. This should include:

Data Analysis: Use your data to justify your requests and counter vendor claims.
Vendor Motivations: Understand what drives the vendor’s pricing and sales strategies, and use this knowledge to your advantage.
Concessions: Identify areas where you can make concessions without compromising your overall position. For example, consider agreeing to a longer contract length (e.g., five years) in exchange for better pricing.

Example: Building a Negotiation Team

A large financial institution preparing for its Microsoft renewal created a cross-functional negotiation team, including representatives from IT, finance, legal, and procurement. This team worked together to develop a unified strategy, which included an escalation plan involving senior executives who had relationships with Microsoft’s leadership. This approach helped the organization secure a more favorable agreement, demonstrating the power of a well-coordinated negotiation effort.

Leveraging External Influences

External influences, such as board-level involvement or industry partnerships, can also play a critical role in negotiations. For instance, if your board members have relationships with vendor executives, leveraging these connections can help escalate your concerns and potentially lead to better terms.

Example: Leveraging Board Influence

In a recent negotiation with Oracle, a technology firm was able to secure more favorable terms by involving a board member who had a longstanding relationship with Oracle’s CEO. By escalating the discussion to this level, the firm was able to negotiate a significant reduction in the proposed price increase, illustrating the value of leveraging external relationships.

5. Holistic Cost Analysis and Strategic Purchasing

Broader Cost Analysis Techniques

When negotiating software renewals, it’s crucial to look beyond individual product discounts and analyze the total cost of ownership (TCO). This includes considering long-term costs, potential future price increases, and the overall impact on your organization’s budget.

Total Deal Value:
Evaluate the overall cost of the agreement, including potential future increases, rather than just the immediate savings. For example, a vendor may offer a discount on a single product but raise prices on other products or services, leading to a higher overall cost.

Strategic Purchasing Considerations:
Consider strategic purchases that may seem counterintuitive, such as buying additional licenses or shelfware, if they align with your overall strategy and offer substantial value. For instance, purchasing additional licenses might secure a more significant discount across your entire agreement, resulting in net savings.

Incentivizing Savings:
Explore opportunities for additional discounts through non-monetary incentives, such as participating in vendor case studies, co-marketing initiatives, or providing testimonials. However, weigh these opportunities against the long-term cost implications and ensure they align with your overall strategy.

Visual Example: Cost Comparison

A detailed table comparing different renewal scenarios and showing the impact of various negotiation strategies on overall costs could be highly effective here. This table could illustrate how different purchasing strategies (e.g., volume purchases, bundling, long-term contracts) affect the TCO over three years.

Conclusion

Recap of Key Strategies

As we navigate the remainder of 2024 and move into 2025, the landscape for software renewals is more challenging than ever. Vendors are better prepared, more strategic, and less willing to offer the kinds of deals that were common just a few years ago. However, by focusing on minimizing price increases rather than simply trying to reduce costs, organizations can still achieve favorable outcomes.

Final Thoughts

The key to success in this environment is preparation, flexibility, and a focus on the total value of the deal. By understanding your needs, leveraging data, and employing a strategic approach, you can navigate the complexities of software renewals and emerge with agreements that protect your organization’s budget and long-term interests.

Azure Cost Management

Posted on April 25, 2023June 7, 2024 by Hailey Austin

Azure Cost Management

Azure is a powerful and feature-rich cloud platform that offers a wide range of services and tools to help organizations build, deploy, and manage applications and workloads. However, the cost of using Azure can be a significant concern for organizations, particularly as the scale and complexity of their Azure environment grow.

Optimizing Azure costs requires a strategic approach considering the organization’s specific needs and requirements. To help organizations optimize their Azure costs, we recommend the following strategies:

Understand your workloads: One of the critical steps in optimizing Azure costs is to understand the specific workloads and resources consumed in your environment. This includes identifying which services and resources are used, how they are used, and how much they cost.

Right-size your resources: Ensuring your resources are appropriately sized for your workloads is critical to optimizing Azure costs. This can involve scaling resources up or down as needed to meet the demands of your workload or selecting cost-effective resource sizes that meet your performance requirements.

Utilize Azure Cost Management tools: Azure provides various tools and services to help organizations optimize costs, including Azure Cost Management, Azure Advisor, and the Azure Pricing Calculator. These tools can help you identify optimization opportunities, track your costs over time, and plan for future growth.

Use resource tagging: Resource tagging is a powerful tool for optimizing Azure costs. It allows you to assign metadata to your resources and track their usage and costs more granularly. This can help you identify and optimize underutilized or overutilized resources and allocate costs more effectively.

Optimize resource deployment: The way that you deploy resources in Azure can have a significant impact on your costs. To optimize your costs, consider using resource groups to manage and deploy resources more efficiently and leverage deployment automation tools like Azure Resource Manager templates to streamline resource deployment.

By following these strategies, organizations can optimize their Azure costs and get the most value from their investment in the cloud.

Azure cost management best practices:

Effective Azure cost management requires a strategic approach considering the organization’s specific needs and requirements. To help optimize Azure costs, we recommend the following best practices:

Understand your workloads: One of the critical steps in optimizing Azure costs is to understand the specific workloads and resources consumed in your environment. This includes identifying which services and resources are used, how they are used, and how much they cost.
Right-size your resources: Ensuring your resources are appropriately sized for your workloads is critical to optimizing Azure costs. This can involve scaling resources up or down as needed to meet the demands of your workload or selecting cost-effective resource sizes that meet your performance requirements.
Use resource tagging: Resource tagging is a powerful tool for optimizing Azure costs. It allows you to assign metadata to your resources and track their usage and costs more granularly. This can help you identify and optimize underutilized or overutilized resources and allocate costs more effectively.
Optimize resource deployment: How you deploy resources in Azure can significantly impact your costs. To optimize your costs, consider using resource groups to manage and deploy resources more efficiently and leverage deployment automation tools like Azure Resource Manager templates to streamline resource deployment.
Leverage Azure Cost Management tools: Azure provides tools and services to help organizations optimize costs, including Azure Cost Management, Azure Advisor, and the Azure Pricing Calculator. These tools can help you identify optimization opportunities, track your costs over time, and plan for future growth.

Azure cost management tools:

Azure provides a range of tools and services to help organizations optimize their costs, including:

Azure Cost Management: Azure Cost Management is a comprehensive platform that provides visibility into your Azure costs, usage, and trend data. With Azure Cost Management, you can track your costs in real-time, optimize your resource usage, and optimize your Azure spending.
Azure Advisor: Azure Advisor is a free service that provides recommendations to help you optimize your Azure resources. Advisor analyzes your resource utilization and workload patterns and provides recommendations to help you optimize your costs, improve performance, and increase security.
Azure Pricing Calculator: The Azure Pricing Calculator is a tool that allows you to estimate the cost of running your workloads on Azure. You can use the calculator to estimate costs based on specific services, regions, and resource sizes and compare the cost of running your workloads on Azure to other cloud platforms.

Azure cost management strategies:

Effective Azure cost management requires a strategic approach considering the organization’s specific needs and requirements. To help organizations optimize their Azure costs, we recommend the following strategies:

Adopt a cost-conscious mindset: To optimize your Azure costs, adopting a cost-conscious mindset and approach to resource management is essential. This involves being aware of the cost of your resources and actively seeking ways to optimize those costs.
Develop a cost management plan: A cost management plan is a roadmap for optimizing your Azure costs over time. Your plan should outline your cost management goals, the strategies and tactics you will use to achieve those goals, and the metrics you will use to track your progress.
Utilize Azure Cost Management tools: Azure provides tools and services to help organizations optimize costs, including Azure Cost Management, Azure Advisor, and the Azure Pricing Calculator. These tools can help you identify optimization opportunities, track your costs over time, and plan for future growth.
Use resource tagging: Resource tagging is a powerful tool for optimizing Azure costs. It allows you to assign metadata to your resources and track their usage and costs more granularly. This can help you identify and optimize underutilized or overutilized resources and allocate costs more effectively.
Optimize resource deployment: How you deploy resources in Azure can significantly impact your costs. To optimize your costs, consider using resource groups to manage and deploy resources more efficiently and leverage deployment automation tools like Azure Resource Manager templates to streamline resource deployment.

Azure cost management tips:

In addition to the strategies and best practices mentioned above, there are several additional tips that organizations can follow to optimize their Azure costs:

Monitor your costs regularly: Monitoring your Azure costs can help you identify optimization opportunities and make changes to reduce your costs. Azure provides a range of tools and services, such as Azure Cost Management and Azure Advisor, that can help you to track your costs and identify areas for improvement.
Consider using reserved instances: Reserved instances can help you to save on Azure compute costs by allowing you to reserve capacity for your workloads at a discounted rate. When you purchase a reserved instance, you commit to using a specific computing capacity for a certain period in exchange for a discounted rate.
Use Azure Hybrid Benefit: Azure Hybrid Benefit is a licensing benefit that allows organizations with Windows Server and SQL Server licenses with Software Assurance to use their existing licenses to save on Azure compute costs. By leveraging Azure Hybrid Benefit, organizations can reduce their Azure compute costs by up to 55%.
Utilize Azure Cost Management policies: Azure Cost Management policies allow you to set rules and alerts to help you optimize your Azure costs. You can use policies to define budget thresholds, set alerts for when costs exceed a certain threshold and enforce resource tagging standards.
Use Azure Cost Management APIs: The Azure Cost Management APIs allow you to access your Azure cost and usage data programmatically, enabling you to build custom cost management solutions or integrate your Azure cost data with other tools and systems.

Azure cost management tools – documents that can help:

Azure provides a range of documentation and resources to help organizations optimize their Azure costs, including:

Azure Cost Management: The Azure Cost Management tool and its documentation provide detailed information on how to use the Azure Cost Management platform, including how to track your costs, optimize your resource usage, and manage your Azure spending.
Azure Advisor: The Azure Advisor documentation provides information on using the Azure Advisor service to optimize your resources and reduce costs. The documentation includes information on how to use Advisor to identify optimization opportunities, get recommendations, and track the progress of your optimization efforts.
Azure pricing: The Azure pricing tool provides detailed information on the cost of Azure services, including pricing details for specific regions, resource sizes, and services. The documentation also includes Azure pricing plans, discounts, and billing options.

Azure cost management pricing:

The cost of using Azure varies depending on the specific services and resources consumed. Azure offers a range of pricing plans and options to suit the needs of different organizations, including:

Pay-as-you-go pricing: With pay-as-you-go pricing, you pay for the specific Azure services and resources you consume based on the published rates. This pricing model is ideal for organizations with variable or unpredictable workloads or wanting the flexibility to scale their resources up or down as needed.
Commitment-based pricing: Commitment-based pricing allows you to purchase Azure services at a discounted rate in exchange for a commitment to use a certain number of resources over a specified period. This pricing model is ideal for organizations that have predictable or stable workloads and can commit to using a certain number of resources over a more extended period.
Azure Hybrid Benefit: Azure Hybrid Benefit is a licensing benefit that allows organizations with Windows Server and SQL Server licenses with Software Assurance to use their existing licenses to save on Azure compute costs. By leveraging Azure Hybrid Benefit, organizations can reduce their Azure compute costs by up to 55%.

Azure cost management resources:

In addition to the documentation and tools mentioned above, there is a range of additional resources available to help organizations optimize their Azure costs, including:

Azure Cost Management blogs: The Azure Cost Management blog provides updates and best practices for optimizing Azure costs, case studies, and success stories from organizations that have successfully optimized their Azure costs.
Azure Cost Management webinars and training: Azure provides various webinars and training resources to help organizations learn more about Azure cost management and optimization. These resources include online courses, in-person training sessions, and virtual events.

Azure Cost Management Community: The Azure Cost Management community is a forum for Azure users to share best practices, ask questions, and connect with other users and experts. The community is a valuable resource for organizations seeking guidance and support on optimizing their Azure costs.
Azure Cost Management support: Azure provides a range of support options for organizations looking for help with Azure cost management. These options include online, phone, and support from Azure partners and third-party vendors.

By leveraging these resources and strategies, organizations can optimize their Azure costs and get the most value from their investment in the cloud.

Microsoft CEO Says, “We’ll Help You Optimize Azure.” Here’s why that won’t work.

Posted on January 17, 2023July 2, 2024 by Hailey Austin

Microsoft CEO Satya Nadella recently announced that the corporation would support its clients in cost-saving Azure optimization. Many professionals, nevertheless, have doubts about Microsoft’s capacity to fulfill this claim. Let’s examine why Microsoft’s optimization plan is unlikely to yield results and the actions you can take in its alternative to achieve true cost reductions.

Why Microsoft’s Azure Optimization Strategy Won’t Work

Microsoft will probably recommend using “reserved instances” and “right-sizing” workloads as optimizations. Azure Reserved Instances are a price option that can lower your cloud technology expenses. In exchange for a promise to utilize Azure services for one or three years, it offers savings.

The procedure of rightsizing involves examining the utilization of your workloads. It includes deciding whether or not they are operating effectively given the price you are paying and then taking measures to enhance them by upgrading, downgrading, or terminating the resources as necessary.

However, these measures are not likely to result in significant cost savings. The reason for this is that the vast majority of waste in Azure comes from so-called “zombie resources”—resources that are no longer being used but continue to accrue charges.

Zombie processes significantly harm the business environment by idly using large amounts of raw computational resources. It is typical for a large company with thousands of programs to have many zombie processes, often as many as 20%.

Zombie resources can exist for a variety of reasons. Perhaps a project was canceled or put on hold, and the associated resources were never deleted. Or maybe someone created a resource for testing purposes and forgot to delete it after they were done. In other cases, people might create duplicate resources or duplicate resource groups containing the same set of assets. Lastly, sometimes people simply forget they have certain resources deployed and continue paying for them even though they’re not being used.

Whatever the reason, it’s important to get rid of these unused resources as soon as possible so that you don’t continue wasting money on them.

The Truth about Microsoft’s Azure Optimization Strategy

Microsoft isn’t incentivized to help you find and eliminate these zombie resources because doing so would reduce its own revenue. They stand to gain financially if you use more Azure resources. Therefore, it is important to be skeptical of their motives when they recommend “right-sizing” or using “reserved instances.” You can save an average of 30–40% on your Azure spending without right-sizing or reserve instance optimizations.

How to Avoid Zombie Resources in Azure Spending?

There are several methods you can use to identify zombie resources within your Azure environment.

On your VMs primarily, alleged “zombie assets” can be active. These are services or parts of the architecture that aren’t required and aren’t being used. Simply put, they are wasting your workspace and wasting your money. Examples include virtual machines (VMs) that were utilized for a specific purpose, left unattended after use, program failures that prevented VM provisioning, inactive network equipment, and more.

These “zombies” can be located by looking for VMs with a max CPU of less than 5% over the preceding period, as this is a widely used indicator of such resources.

Furthermore, disk space is often connected to your software when you deploy a VM. And although you aren’t using the storage devices when the VM is terminated, they are still operational, and you are still obligated to pay for them. Best practices recommend terminating disc storage that has been detached for longer than two weeks, although your company may have different requirements.

Other ways to avoid zombie resources include the following.

Check your Azure portal for any deployments that haven’t been used in a while. You can use Azure Resource Manager (ARM) tags to help identify which assets haven’t been used recently.
Another method is to export your Azure bill into a format that can be analyzed, such as CSV or JSON. This will allow you to see which services are consuming the most money so that you can investigate further.
You can also set up Azure Monitor Logs to monitor your environment for any deployments that aren’t being used.

Once you’ve identified which assets are no longer being used, it’s time to delete them and stop paying for them. The first thing you’ll want to do is delete any unnecessary resource groups. Then, go through each resource group and delete any individual resources that aren’t needed. Be sure to check with your team before deleting anything, as some assets might be in use by other people or processes within your organization. Once everything has been deleted, you should see a reduction in your Azure bill.

The best way to efficiently deal with zombie resources is to seek help from experts. An experienced team of Azure experts can help you identify and delete all of the zombie resources in your account while optimizing your overall Azure usage to reduce your costs. With their help, you can get your Azure account cleaned up and running more efficiently in no time.

Conclusion

Microsoft’s recent announcement that it will help customers optimize their Azure usage is unlikely to result in significant cost savings. The reason for this is that most waste in Azure comes from unused “zombie resources,” which Microsoft has no incentive to help you eliminate. There is an opportunity for savings in Azure, but most people are not taking advantage of it because they don’t know where the waste is. However, there are some steps you can take to optimize your Azure workloads for maximum efficiency. By finding and deleting Zombie Resources, you can make sure that you’re getting the most out of your investment in Azure. If you’re looking for real cost savings on your Azure spending, you’re better off working with a company that specializes in optimizing Azure usage.

What are Software Audits, and Why Are They On The Rise?

Posted on January 10, 2023July 2, 2024 by Hailey Austin

Recent years have seen an uptick in software audits, with more companies being asked to provide evidence of licensing compliance. This is largely due to the fact that organizations are now using more software than ever before, with an increasing number of employees working remotely.

Watchdog groups like the Business Software Alliance (BSA) and the Federation of Software Theft (FAST) serve the sole purpose of ensuring the protection of software vendors’ intellectual property. These groups and software vendors are dedicated to discovering and auditing non-compliant organizations every single day with little to no notice. According to Gartner, the likelihood of an assessment for a medium to a large firm over the next two years is predicted to be 40%, which is expected to rise by 20% annually.

But why do software vendors act in this manner?

Simply put, the main motivator is money. Revenue from software sales fell when the American economy saw a downturn and software expenditures were slashed. Software vendors were forced to hunt for alternative income sources when these profits started to decline. Audit fines and penalties of several hundred thousand dollars to even millions of dollars appeared as lucrative options for these vendors. According to the BSA, 25% of businesses that operate in the US are non-compliant in some way, costing software vendors an estimated $6 billion in the loss.

What is a Software Audit?

A software audit is an assessment of a company’s compliance with software licensing agreements. Organizations that use pirated or unlicensed software can be subject to expensive penalties, including fines and damages. In some cases, they may even be required to forfeit their business’ computers and other equipment.

How Do Organizations Fall Out of Compliance?

The truth is that conformity is not simple. It involves more than just purchasing adequate licenses. Even techies typically struggle to completely comprehend software licensing laws because they are so sophisticated, and even when they do, modifications to the regulations occur so often that it is challenging to stay up to date.

Most businesses lose their ability to comply with the rules when they lack proper record keeping and miscomprehend software usage rights. Both parameters are equally crucial to stay in compliance. The first approach is to have clear visibility into your integrated software usage. In the unfortunate case of your company being audited, this can be an added benefit because you will be able to provide records immediately and demonstrate your good faith efforts to adhere to the regulations.

Furthermore, it’s crucial to have an attorney or specialist who excels in contract negotiations. They can elaborate to you how you can lawfully utilize your software, saving you from involuntary non-compliance. Avoid attempting to resolve this on your own, as it is easy to misinterpret or fail to notice crucial facets of software use terms and conditions. For instance, there have been instances where a business has expanded internationally and had staff members using software in other countries. They believed this was acceptable since they had many licenses, but since those licenses were only intended for use in the United States, they were in violation without even recognizing it.

How to Lower Your Risk of Being Audited

Exhibit a Sound Understanding to the Software Auditors

To show that you have a good grasp of your software agreements, it is crucial that you respond to any inquiries the auditors pose in an efficient and thorough manner. In order to achieve this, you’ll need a workforce in control of the project, a SAM solution in place to oversee your software inheritance, and frequent internal audit findings to get a complete picture of your software assets utilization.

This is especially true if your business has just undergone a merger or acquisition or if it is a large corporation with numerous branches. Such circumstances will make you prone to disorganization, which in turn raises the possibility of overlooking factors important for compliance.

Stay Prepared

Inform your staff on the importance of software asset management, and prepare a defense plan in case a software inspection occurs. Even if a software audit is conducted, a quick assessment with a few fines will show the software provider that you are not an easy catch. Preparing includes having your licenses in order, appointing a specific person to oversee your company’s software audit, and having an audit defense strategy in place. Knowing what to do will ensure that every software audit of your company proceeds without incident and with the least amount of damage possible.

Be aware of your Software Architecture

Establish an efficient asset life cycle, along with a streamlined procedure to purchase and retire software resources to keep a close check on them. Failure to do this can lead to the acquisition of numerous unnecessary licenses, which quietly drain the company’s IT budget. Keep track of what licenses you have and how many licenses you need so that you can stay compliant. Additionally, make sure that only authorized users have access to your organization’s software. Implement user controls and set up alerts so that you can immediately spot any unauthorized access or usage.

Often, the majority of software audits search in the company’s Active Directory (AD) to assess compliance. A company’s AD contains all devices and accounts—not just those that are currently in use—that have ever used their software resources. There will be ex-employees in your Active Directory, along with devices that have been gathering dust in the company’s store, and the auditors will claim that each of these entities needs a license.

Conclusion

Monitoring your software resources will cost much less than having them audited. In addition to achieving compliance, successfully managing your software and how they are used also ensure that your software resources are used to their full potential. You may delete shelfware and restructure your agreements to ensure that every software program you have is being successfully utilized. Efficient asset administration has no drawbacks because the added administrative costs will eventually result in equal cost reductions. By making sure all of your organization’s software is properly licensed and keeping track of who is using it and when, you can help your company avoid costly penalties associated with non-compliance.

How Office 365 Works – The Organization’s Guide

Posted on November 25, 2022June 11, 2024 by Mike Austin

One of the most cutting-edge and comprehensive work tools on the market is Office 365. It has several components intended to help organizations become more productive and improve routine operations. But while Office 365 can significantly enhance how your business runs, properly integrating the program into your company’s daily operations can be challenging.

So how can you get around this problem?

Since Office 365 is a holistic platform for office productivity, and new functions and features are constantly added, employees should have access to initial and ongoing training on how it works. This will help them become acquainted with the software and its features, ensuring a smooth technology diffusion within your organization.

Subscribing to Office 365 represents a significant change for many organizations, which have traditionally purchased Office products for a one-time charge and then utilized the software for as long as possible. It may feel like an uphill battle, so organizations that are up for this transformation should be well-equipped with the necessary information. There are several factors to consider when licensing a software suite in this modern paradigm. Understanding how Office 365 works and how it is licensed will undoubtedly influence its efficient implementation within your organization, ultimately helping with Office 365 cost-cutting.

Below, we will go through a few reasons why you should consider switching to Office 365 to upgrade your organization’s operational efficiency.

Why Organizations Need Office 365

One of the primary reasons you should consider upgrading to Office 365 is that Microsoft is discontinuing its traditional desktop solutions in favor of subscription-based cloud solutions. This is true for both Windows and the Office 365 suite. Security updates will always be available for Microsoft cloud subscription products but not for older, unsupported versions of perpetual licenses. This could imply that there will be no updates, fixes, training, or support, potentially making outdated, non-cloud programs more vulnerable to malware and hackers and putting you, your data, and your organization at risk.

Office 365 Features and Functionality

Microsoft’s objective is to provide Office 365 members with a one-stop shop of continuously growing relevance, which is the opposite of the depreciation of their desktop products. Knowing how Office 365 works allows ease and efficiency in your operations. It now includes several frequently used company management features, communication tools, document and file management workflows, and even backup.

As a result, you gain more capability for your investment and benefit from the simplicity of learning only one user interface. You also benefit from the power of integration. All your documents, storage, and tools communicate with one another and work seamlessly together, saving you a tremendous amount of time and hassle.

1. Versatile Planner

Microsoft Planner is another time-saving functionality that comes with Office 365. A supervisor or a project manager can start a new group in Planner, such as for a department within your company or a specific task it is working on. A group in Planner and Office 365 can be momentary, like for an occasion, or permanent, like for regular responsibilities given to a sales department. Once a Planner group has been made, the group owner can create swim channels, or what Microsoft refers to as “buckets,” after which any group member can establish tasks that must be completed to achieve the planned goals.

Each task in Planner can be allocated to a single person or a group of people, and if necessary, it can be given a due date. Individual tasks can have attachments and components that are a portion of one major task, and each group or project Planner can be adjusted and updated. If a person’s role changes or they transfer to a different project or group, it is simple to redistribute their responsibilities. Since all group members can see the responsibilities, Planner helps facilitate transparency and effective collaboration.

2. Effective for Teamwork

The Office 365 service Microsoft Teams is the optimal solution for corporate group chats. Microsoft Teams offers visibility and accountability regarding discussions and work activity while enabling employees to interact with each other creatively and professionally. Microsoft Teams can be integrated into everyday business processes for companies who subscribe to Office 365 Business Premium, Business Essential, or Enterprise (E1, E3, or E5). With the help of Office 365, Microsoft Teams enables divisions inside an organization to collaborate more efficiently.

Microsoft Teams also offers many advantages over comparable competitors, like Slack. It not only provides greater benefits at a lower cost, but it also makes work more efficient and user-friendly. Strive to have your employees on the same page, as this will improve the working atmosphere and boost output, which will benefit your bottom line. With the right training, you can easily integrate Office 365 and its services into your company’s everyday operations.

Ongoing Battle: Organizations Struggle with Office 365 Cost-cutting

Despite the multitude of benefits of Office 365, most organizations are almost certainly paying too much for it. We surveyed 100 IT managers and purchasers, and 42% stated they were paying too much, while another 30% stated they were confused by licensing. The intricate licensing arrangements that enterprise agreements require are intended to be confusing, increase your expenditure and regulatory risk, and make it more difficult to keep records of who uses what licenses in your company.

It is essential to compare your utilization to the accessible licensing, illustrate where your staff members are over-licensed, and identify how much it costs you. For enterprise-level organizations, the cost of over-licensing staff can result in thousands of dollars being overspent each month.

Organize your licensing so that it is detailed and simple to comprehend, more feasible and efficient, and so you can make educated choices about your software expenditure, resulting in a streamlined and contemporary approach to software asset management.

MetrixData 360: Office 365 Licensing Specialists are Here to Help

It might be an unfamiliar and exciting opportunity to switch to Office 365, so it’s important to comprehend what you require and how you’ll employ it. By doing so, you can come up with a custom solution that best matches your organization’s needs, keeping your costs low and your productivity high. MetrixData 360 specializes in helping businesses transition from desktop services to cloud-based platforms by establishing a contemporary approach to software asset management for Office 365 cost-cutting.

Visit our website to learn how MetrixData 360 helps its clients understand how Office 365 works and to see how much you can save.

Switching from EA to CSP

Posted on November 17, 2022May 23, 2024 by john.charalambides@nearix.com

5 Hidden Azure Cost Optimizations: How to Save on Azure

Posted on November 15, 2022May 23, 2024 by Hailey Austin

The more resources you spend on your business, the better it gets. With Azure’s increased variety and efficiency boosters like machine learning tools for data analysis or IoT connectivity options, there are no limits to what can be achieved. But be aware, Azure cost management can also be very challenging.

Understanding where your company’s money is coming from might be complex, given that firms frequently own dozens of Azure-related services for which they must make monthly payments. Shifting more assets to the cloud and cloud expenses also comprise a sizable portion of IT expenditures.

So, do you want to know how to reduce IT budgets?

There are various Azure cost optimization secrets that can assist you in visualizing and controlling costs. You can use these to cut down on waste and maximize already-existing resources.

Here are some insights on practices and tools that can assist you in optimizing your Azure costs.

1. Efficient Use of VMs

Azure provides a diverse range of virtual machines (VMs) with various hardware and functionality options. To determine which offers maximum throughput or efficiency while being cost-efficient, experiment with different VMs for the same job. You can auto-scale to adopt the number of VMs for actual workloads and continue with the VMs that perform best.

Keep in mind that 100% utilization of all VMs will result in the lowest cost. By utilizing Azure Monitor to analyze your metrics alongside techniques, such as auto-scaling, to update the number of machines based on utilization, aim to reach as close to this target as possible.

2. Utilizing B-series VMs

Another way to ensure Azure cost optimization is through B-series VMs. The B-Series virtual machines provided by Azure are intended for programs that are normally inactive but occasionally see spikes in consumption. If the job is manageable, you can earn credits with low levels of computational resources. The CPU power is increased with abrupt spikes in consumption, and you can use the credits to cover the cost of capacity addition. The machine returns to its default CPU power when credits have been used up.

B-Series VMs offer reductions from 15-55% compared to other VMs. Determine which tasks must be available but only seldom require high throughput or performance, and migrate them to B-Series virtual machines.

3. Shifting Workloads to Containers

Containers weigh less compared to VMs. You can run up to hundreds of containers on a single host machine, with each running a different containerized program. By repackaging your programs as containers, you can significantly lower VM utilization and your expenditures. Consider moving workloads to a container service like Azure Kubernetes Service from conventional Azure VMs (AKS).

4. Using Storage Tiering

Most continuing costs for Azure setups are often related to memory. With decreasing costs per each storage tier of Azure Blob Storage, several redundancy choices are also available (less redundancy means less storage cost). Consider researching Azure storage pricing to find out how much each storage service costs.

Shifting less critical or infrequently accessed data to a cheaper tier or a lower redundancy option will help you save money. You can further build tiering storage management into your software to ensure that data is routinely migrated to a lower-cost tier when it is no longer required.

5. Utilizing Cost Optimization Tools

The Azure consumption tools, such as SLIM 360 for Azure, are highly beneficial if you are interested in controlling your budget reports and improving Azure cost optimization. SLIM 360 is one of these tools and is solely designed to uncover your potential for cost savings, helping you carefully examine your data to identify superfluous expenses so they can be reinvested into your business.

Working with the information generated by the Azure portal can be challenging. The overwhelming volume of data that Azure customers receive frequently leaves them unable to make sense of it. Solutions like SLIM 360 Azure Reporting streamline and simplify the process of analyzing results by compiling them into plain-language graphs and charts, enabling greater use of your Azure Portal invoices.

MetrixData 360: Here to Help

If you attempt to break down your costs using the receipts in your Azure portal, you will probably be met with a headache from complex data spreadsheets. However, MetrixData 360’s Azure Usage Tool is specially designed to comprehend Azure’s detailed pricing and simplify it into information that is easy to understand and use. Our tool categorizes your current Azure charges for storage, VMs, SQL databases, and more. The total cost for each category is then shown, along with the list price and any discounts used.

If you’re looking for how to reduce IT budgets, visit our website to book a demo to see how much you can save.

Bring Your Own License (BYOL) Rules on Third-Party Cloud Providers

Posted on March 29, 2022May 23, 2024 by Hailey Austin

Bring Your Own License (BYOL) Rules on Third Party Cloud Providers

Software licensing is ridiculously confusing, and its hyper complexity is not slowing down anytime soon. This confusion can easily lead to overspending, which equates to more money in the software vendor’s pockets, taken at the expense of your company’s software budget. how does overspending occur? One key reason behind our client’s overspending stems from the complexity of Bring Your Own License rules (BYOL) on their third-party cloud providers.

At MetrixData360, we have helped hundreds of companies save millions of dollars, in this article, we will clear the waters by showing you the steps you can take to mitigate any potential areas of overspending in your software licensing environment.

Rule Change

Microsoft changed its rules as of 1st October 2019 around how Microsoft products are licensed in 3rd party hosting scenarios. These changes primarily impact AWS, Google, and Alibaba clouds (although others are affected). The concept of Bring Your Own Licenses (BYOL) is influenced significantly by these changes. Before these changes, as long as you had hardware dedicated to your use (i.e., were not using shared infrastructure), you could BYOL now. With these changes, you may be required to purchase subscription licenses for these products through the hoster (e.g., Windows Servers, Office). Specific versions may still be licensed via BYOL if licenses were acquired for those products before October 2019 or on a contract still active as of October 2019.

To understand these rights, you must review the Microsoft Product Terms. Below are the relevant sections:

Customers may use the server software on a Licensed Server, provided it acquires sufficient Server Licenses as described below.

A Licensed Server is:

A Licensed Server means a single Server, dedicated to the Customer’s use, to which a License is assigned. Dedicated Servers that are under the management or control of an entity other than the Customer or one of its Affiliates are subject to the Outsourcing Software Management clause. For purposes of this definition, a hardware partition or blade is considered to be a separate Server.

The Outsourcing Software Management clause states:

Customers may install and use licensed copies of the software on Servers and other devices that are under the day-to-day management and control of Authorized Outsourcers, provided all such Servers and other devices are and remain fully dedicated to Customer’s use. The customer is responsible for all of the obligations under its volume licensing agreement regardless of the physical location of the hardware upon which the software is used. Except as expressly permitted here or elsewhere in these Product Terms, the Customer is not permitted to install or use licensed copies of the software on Servers and other devices that are under the management or control of a third party.

Authorized Outsourcer means any third-party service provider that is not a Listed Provider and is not using Listed Provider as a Data Center Provider as part of the outsourcing service.

AWS is a Listed Provider. Next, we need to determine if we have a right to utilize software at the Listed Providers through Microsoft License Mobility through Software Assurance right:

License Mobility through Software Assurance

Under License Mobility Through Software Assurance (SA), Customer may move its licensed software to shared servers under any of its Licenses which are designated as having License Mobility for which it has SA, subject to the requirements below. Products used for Self-Hosting may be used at the same time under License Mobility through SA rights, subject to the limitations of the Self-Hosting License Terms.

Permitted Use:

With License Mobility through SA, Customer may:

- - Run its licensed software on shared servers;
  - Access that software under access licenses and for which it has SA, and under its User and Device SLs that permit access to the Products;

- - Manage its OSEs that it uses on shared servers; and/or
  - Manage its OSEs that it uses on its servers using software that it runs on shared servers.

Requirements:

To use License Mobility through SA, the Customer must:

- - Run its licensed software and manage its OSEs on shared servers under the terms of its volume licensing agreement;
  - Deploy its Licenses only with Microsoft Azure Services or qualified License Mobility through Software Assurance Partner; and
  - Complete and submit the License Mobility Validation form with each License Mobility through Software Assurance Partner who will run its licensed software on their shared servers.

License Mobility allows for use on a shared server. Products that have this right associated with them allow BYOL (as long as you have active Software Assurance). Next, we need to see if a product has Server Mobility. For Windows Server:

4. Software Assurance

Windows Server does not include License Mobility rights. For Windows Server (or any product without License Mobility), this means BYOL is only available for versions that were released before October 2019 and for which licenses were acquired prior (or on active contracts as of October 2019) to October 2019

Please refer to the current Product Terms to ensure this info is still accurate as Microsoft makes changes frequently to their licensing rules.

Start Saving on Your Software Licensing

Being able to cut software licensing costs will mean money back into the IT department for smarter and more innovative investments. This can be done by tracking the life cycles of your assets through the successful deployment of an inventory tool (along with someone who can effectively read it), through having a clear understanding of usage during contract negotiations, carefully considering your migration to the Cloud, and by conducting internal audits to ensure compliance.

At Metrixdata360, we can help you cut down your costs to save you from unnecessary drains on your budget and potentially heavy audit penalties. Don’t put off saving money, get your free consultation today!