Saving $80,000 Annually

As Shell scaled its cloud infrastructure to meet growing business demands, the complexity of managing cloud licenses, resources, and procurement processes became a significant challenge. The company was paying for cloud licenses that were underutilized or not used at all, and their cloud resources were often over-provisioned, leading to unnecessary costs.

The procurement of cloud services was decentralized, resulting in missed opportunities for cost savings and the inability to take advantage of volume discounts or better contract terms. Shell needed a solution that would optimize their cloud costs while ensuring that their procurement processes were streamlined and aligned with business needs.

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BITSUMMIT deployed a comprehensive Cloud Cost Optimization strategy to help Shell achieve significant cloud cost savings.

Key actions included:

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1. Cloud License Audit and Assessment

• Full License Inventory Review: Conducted an in-depth audit of Shell’s cloud licenses across various platforms, including Microsoft Azure and AWS, to identify underutilized and unused licenses.

• License Rightsizing: Right-sized license allocations based on actual usage, ensuring that Shell only paid for the licenses they needed and reducing excess costs.

• Automated License Management: Implemented automated license management tools to monitor usage in real time, ensuring that licenses were allocated efficiently and eliminating waste.

2. Cloud Resource Optimization

• Resource Right-Sizing: Analyzed cloud resource usage to identify instances of over-provisioning, under-utilization, and unnecessary resource allocation.

• Cost-Saving Recommendations: Recommended resource adjustments, such as downgrading certain instances, utilizing reserved instances, and leveraging auto-scaling to match demand, leading to reduced cloud costs.

3. Streamlining Procurement Processes

• Centralized Procurement Strategy: Developed a centralized procurement strategy for cloud services, consolidating purchases to take advantage of volume discounts and better contract terms.

• Vendor Negotiations: Negotiated with cloud vendors to secure more favorable licensing agreements and pricing, saving Shell money on renewals and new purchases.

• Automated Procurement Workflows: Implemented automated procurement workflows, streamlining the approval process and ensuring that the right licenses and resources were procured based on real-time needs.

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Significant Cost Savings and ROI

• $80,000 in Annual Savings: Through effective license management and cloud resource optimization, Shell saved $80,000 annually, freeing up budget for other strategic initiatives.
• Increased ROI on Cloud Investments: By optimizing resource usage and improving procurement processes, Shell achieved a higher return on investment from its cloud infrastructure.

Enhanced Visibility and Control

• Improved License Visibility: With automated license management tools in place, Shell gained full visibility into their cloud licenses, enabling them to track usage, optimize allocations, and prevent future overspending.
• Centralized Control: The centralized procurement strategy enabled Shell to negotiate better deals with cloud vendors, resulting in more favorable contract terms and long-term savings.

Efficient Procurement and Resource Management

• Procurement Efficiency: Automated procurement workflows reduced the time it took to approve and acquire new licenses, ensuring that Shell’s cloud infrastructure remained flexible and responsive to business needs.
• Right-Sized Resources: Cloud resource optimization eliminated waste by matching cloud infrastructure to real-time demand, ensuring that Shell paid only for the resources they needed.

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