How Indian Organisations Can Optimise Cloud Investments With Observability

How Indian Organisations Can Optimise Cloud Investments With Observability

Authored by Rohit Ramanand, Group Vice President of Engineering India, New Relic

The cloud promises scalability, adaptability, and cost efficiency, with modern software practices and cloud native technologies enabling teams to ship software faster, more frequently, and with greater reliability. Despite this, rising cloud costs have been a cause for concern for many businesses. One 2022 study from Flexera revealed that over 66% of companies globally found real-world cloud costs to be higher than initial estimates, which in the current, challenging economic environment can place significant pressure on bottom lines.

Additionally, PWC has revealed that 93% of Indian CEOs have already cut operational costs or are planning to do so in the future, which shows that there is a desire for infrastructure spending to be optimised. Some organisations may choose the more costly route of rebuilding applications from scratch while moving from on-premise to the cloud, while others may opt for the less expensive lift and shift approach. However, both approaches can see additional costs emerge depending on the parameters of the cloud migration.

Another area where cloud costs can skyrocket is when organisations opt for solutions that provide point-in-time assessments, which makes it trickier to determine the cost-effectiveness and ROI of adoption. An additional factor is poor engineering hygiene, when teams are unrestricted and spin up several environments, causing costs to spiral, especially in larger enterprises. 

Optimising cloud investments requires the right observability solutions, but with many companies using a combination of tools that only offer a single perspective on data usage, silos can emerge. Without a unified view of relevant information, companies could overbuy or underbuy, struggle with vendor lock-in, or fall into billing traps. 

Cloud migration success and cost reduction

As cloud costs increase in India, technology teams must learn exactly where money is being spent and what itโ€™s being spent on. Observability is highly beneficial for visualising cloud spend, and full stack observability takes things a step further by enabling businesses to index all of their resources in the cloud and assign associated costs. This helps teams to understand how much money is being spent.

Observability can reduce cloud costs by facilitating swift troubleshooting; and enhancing deployment cycle times and application testing time by adding deployment markers to confirm if everything is working as itโ€™s meant to, or if a performance-impacting change has been introduced.

For example, Credit Sense, a data aggregation and analytics platform has used observability to rank its services from most to least expensive, performing a sanity check against the value it provides to customers and the business. Observability creates a holistic perspective and has helped the business reconsolidate certain services while removing unused ones. The company has been able to optimise its investments by reducing cloud costs by 26% and its mean time to detect (MTTD) by 80%. 

Full-stack observability acts as a single source of truth for organisational data with individual teams gaining access to data from other groups. Having this single view means that an organisation doesnโ€™t have to piece together different views of metrics, events, logs, and traces via multiple solutions. They can understand the internal workings of their applications and infrastructure, and business decisions become data-driven.

Creating real business outcomes

Observability solutions cannot deliver the best possible return on investment (ROI) if they donโ€™t create real business outcomes that boost the performance of people, processes, and technology. They must eliminate organisational silos and offer complete visibility into the cloud so that budgeting can be approved.

Nexthink, a human-centric data platform, was collecting logs from customers to identify and fix underlying problems, which proved to be a slow process. After adopting observability, the company was able to immediately analyse data in-depth, and search and pinpoint problems, all while monitoring their cloud environment. Now, they are now able to understand their entire cloud estate in a flexible consumption model and are well-equipped to respond proactively to issues in real-time.

To be successful, cloud investments must improve productivity and secure the highest possible ROI. Observability platforms can help in this arena, by enabling teams to work on the most important priorities, enhancing mean time to respond (MTTR), reducing revenue loss, and allowing real-time data management and analysis from a business perspective. It can help businesses meet the growing demands of digital transformation, cost optimisation, and growth, and is crucial to understanding the impact and performance of critical products and digital services.

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