Optimizing Cloud Costs

in a Fast Growing Startup — Djuno Case Study

Djuno helps companies get back control over cloud costs. In the process, we use both AI (Artificial Intelligence) and our natural intelligence.

One of the most common questions people ask is a variation of “what exactly are the cost savings” or “what are the average cost savings over a 5 year period”. It is one of these “how long is a piece of string” questions. It’s complex and depends on many factors, but we have a framework that can be used to estimate the savings and can provide some actual numbers for reference.

External cloud costs

Let’s start with real numbers. One of our clients, a fast growing, successful FinTech/ InsurTech startup used to pay low 5 figures per month (low 6 figures per year) out of pocket for external public cloud infrastructure. After our intervention, they are now paying around 30% less each month. But, we didn’t just turn off their servers. We redesigned the architecture, so they have now 2x more cloud compute and storage. So, on a “per unit” basis, the savings equal to some 65%. Over 5 years, the total cost savings amount to is a very significant, high 6 figures number and this will be even more evident when more cloud resources are needed, as the business grows.

In general, our conservative estimate is that companies can save around 30% of their cloud expenses. This is in line with recent research that confirms that about 30% of cloud spending is wasted [2020 Flexera state of the cloud report].

Internal resources

Additionally, companies can reduce their internal resources dedicated to managing infrastructure. A full time DevOps costs $100k / year and more. With Djuno, they can focus on developing instead of maintaining and patching the existing infrastructure. Djuno managed solutions (with our dedicated engineer) will cost about 30% of this (30k/year vs 100k) if a company wants to outsource the whole process. The bigger the infrastructure, the more DevOps or SysOps a company has, the more evident the savings are.

Opportunity costs and other business related items

Finally, there are costs that are difficult to quantify immediately, based on assumptions, but can be estimated on a case by case basis. These include the cost of technical debt (when a company doesn’t want to modernize because they don’t have any good migration solutions), costs of (non-)compliance (especially in financial services), the opportunity cost of utilizing all the data (due to the lack of tools to share it internally and externally) or cost of reporting and analytics where aggregation has to happen manually each time.

The above items have a profound impact on the whole business, especially when compounded over time. In general, the question is how much does it cost to have a business that is not flexible and has its culture and processes negatively impacted by obsolete IT architecture. With Djuno, the company’s IT environment becomes an asset and every piece of code is a reusable building block that can generate compound yield in the future (vs. a liability of technical debt and escalating costs of disposable code and inefficient infrastructure).

In summary: the cost savings are significant and the positive impact on the entire business is profound. You should try it! [BTW, we have a zero-risk, no commitment “return policy”: we deploy Djuno for you, estimate the impact, present you with the offer and if you don’t like it, we take Djuno back, no questions asked].