Managed Cloud Services: Optimize, Reduce Costs, and Efficiently Achieve your Business Goals

Cloud adoption is becoming more popular across all industries, as it has proven to be reliable, efficient, and more secure as a software service. As cloud adoption increases, companies are faced with the issue of managing these new environments and their operations, ultimately impacting day-to-day business operations. Not only are IT professionals faced with the challenge of juggling their everyday work activities with managing their company’s cloud platforms but must do so in an timely, cost-efficient manner. Often, this requires hiring and training additional IT people—resources that are getting more and more difficult to find.

This is where a managed cloud service provider, like 2nd Watch, comes in.

Managed Cloud Service Provider

What is a Managed Cloud Service Provider?

Managing your cloud operations on your own can seem like a daunting, tedious task that distracts from strategic business goals. A cloud managed service provider (MSP) monitors and maintains your cloud environments relieving IT from the day-to-day cloud operations, ensuring your business operates efficiently. This is not to say IT professionals are incapable of performing these responsibilities, but rather, outsourcing allows the IT professionals within your company to concentrate on the strategic operations of the business. In other words, you do what you do best, and the service provider takes care of the rest.

The alternative to an MSP is hiring and developing within your company the expertise necessary to keep up with the rapidly evolving cloud environment and cloud native technologies. Doing it yourself factors in a hiring process, training, and payroll costs.

While possible, maintaining your cloud environments internally might not be the most feasible option in the long run. Additionally, a private cloud environment can be costly and requires your applications are handled internally. Migrating to the public cloud or adopting hybrid cloud model allows companies flexibility, as they allow a service provider either partial or full control of their network infrastructure.

What are Managed Cloud Services?

Managed cloud services are the IT functions you give your service provider to handle, while still allowing you to handle the functions you want. Some examples of the management that service providers offer include:

  • Managed cloud database: A managed database puts some of your company’s most valuable assets and information into the hands of a complete team of experienced Database Administrators (DBAs). DBAs are available 24/7/365 to perform tasks such as database health monitoring, database user management, capacity planning and management, etc.
  • Managed cloud security services: The public cloud has many benefits, but with it also comes security risks. Security management is another important MSP service to consider for your business. A cloud managed service provider can prevent and detect security threats before they occur, while fully optimizing the benefits provided by a cloud environment.
  • Managed cloud optimization: The cloud can be costly, but only as costly as you allow it to be. An MSP can optimize cloud spend through consulting, implementation, tools, reporting services, and remediation.
  • Managed governance & compliance: Without proper governance, your organization can be exposed to security vulnerabilities. Should a disaster occur within your business, such as a cyberattack on a data center, MSPs offer disaster recovery services to minimize recovery downtime and data loss. A managed governance and compliance service with 2nd Watch helps your Chief Security and Compliance Officers maintain visibility and control over your public cloud environment to help achieve on-going, continuous compliance.

At 2nd Watch, our foundational services include a fully managed cloud environment with 24/7/365 support and industry leading SLAs. Our foundational services address the key needs to better manage spend, utilization, and operations.

What are the Benefits of a Cloud Managed Service Provider?

Using a Cloud Managed Service Provider comes with many benefits if you choose the right one.

Some of these benefits include, but are not limited to: 

  • Cost savings: MSPs have experts that know how to efficiently utilize the cloud, so you get the most out of your resources while reducing cloud computing costs.
  • Increased data security: MSPs ensure proper safeguards are utilized while proactively monitoring and preventing potential threats to your security.
  • Increased employee production: With less time spent managing the cloud, your IT managers can focus on the strategic business operations.
  • 24/7/365 management: Not only do MSPs take care of cloud management for you but do so 100% of the time.
  • Overall business improvement: When your cloud infrastructure is managed by a trusted cloud advisor, they can optimize your environments while simultaneously allowing time for you to focus on core business operations. They can also recommend cloud native solutions to further support the business agility required to compete.

Why Our Cloud Management Platform?

With cloud adoption increasing in popularity, choosing a managed cloud service provider to help with this process can be overwhelming. While there are many options, choosing one you can trust is important to the success of your business. 2nd Watch provides multi-cloud management across AWS, Azure, and GCP, and has a special emphasis of putting our customers before the cloud. Additionally, we use industry standard, cloud native tooling to prevent platform lock in.

The solutions we create at 2nd Watch are tailored to your business needs, creating a large and lasting impact on our clients. For example:

  • On average, 2nd Watch saves customers 41% more than if they managed the cloud themselves (based on customer data)
  • Customers experience increased efficiency in launching applications, adding an average 240 hours of productivity per year for your business
  • On average, we save customers 21% more than our competitors

Next Steps

2nd Watch helps customers at every step in their cloud journey, whether that’s cloud adoption or optimizing your current cloud environment to reduce costs. We can effectively manage your cloud, so you don’t have to. Contact us to get the most out of your cloud environment with a managed cloud service provider you can trust.

-Tessa Foley, Marketing

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5 Cloud Optimization Benefits

When making a cloud migration, a common term that gets tossed around is “cloud optimization”. If your organization is new to the cloud, optimizing your environment is essential to ensuring your migration pays off quickly and continues to do so in the long term.

If your organization is already established in the cloud, you may observe higher costs than expected due to cloud sprawl, under-utilized resources, and improper allocation of resources. Cloud optimization helps your organization reduce these costs and improve overall efficiency in the cloud

Cloud Optimization

What is cloud optimization?

The definition of cloud optimization may vary from one cloud service provider to another, but generally, cloud optimization is the process of analyzing, configuring, provisioning, and right-sizing cloud resources to maximize performance and minimize waste for cost efficiency. The reality is that many organizations’ cloud environments are configured in an inefficient manner that creates unnecessary cloud spend. With proper cloud optimization tools and practices, these unnecessary costs can be eliminated.

While cloud optimization is mostly discussed in terms of cloud spend, cost optimization is simply a faucet of cloud optimization and can extend to overall performance and organizational efficiency. Some examples of cloud optimization practices that your organization can adopt right now include:

  • Right-sizing: Matching your cloud computing instance types (i.e. containers and VMs) and sizes with enough resources to sufficiently meet your workload performance and capacity needs to ensure the lowest cost possible.
  • Family Refresh: Replace outdated systems with updated ones to maximize performance.
  • Autoscaling: Scale your resources according to your application demand so you are only paying for what you use.
  • Applying Discounts: Reserved instances (RIs) allow companies to commit to cloud resources for a long period of time. The longer the discount and the more a company is prepared to pre-pay at the beginning of a period, the greater the discount will be. Discounted pricing models like RIs and spot instances will drive down your cloud costs when used according to your workload.
  • Identity use of RIs: Identifying the use of RIs can be an effective way to save money in the cloud if used for suitable loads.
  • Eliminate Waste: Regulating unused resources is a core component of cloud optimization. If you haven’t already considered cloud optimization practices, you are most likely using more resources than necessary or not certain resources to their full capacity.

Why is cloud optimization important?

Overspending in the cloud is a common issue many organizations face by allocating more resources to a workload than necessary. Integrating cloud optimization practices can reap many benefits for your cloud infrastructure and your organization, including the following:

  • Cloud Efficiency: When workload performance, compliance, and cost are continually balanced against the best-fit infrastructure in real-time, efficiency is achieved. Implementing cloud optimization practices will eliminate as much cloud resource waste as possible, increasing the performance of your cloud environment.
  • Cost Savings: Although cloud optimization comes in a variety of forms, cost optimization is the most important component for many organizations. By reducing waste in the cloud, costs are reduced as a byproduct.
  • Greater Visibility: Cloud optimization practices utilize analytics to provide visibility into your cloud environment to make data-driven decisions. Implementing optimization tools also provides cost visibility, so your organization has a better perspective on cloud spend.
  • Increased Productivity: Once a cloud optimization strategy is implemented, IT teams will spend less time trying to solve problems because an optimized environment prevents problems before they occur.
  • Organizational Innovation & Efficiency: Implementing cloud optimization often is accompanied by a cultural shift within organizations such as improved decision-making and collaboration across teams.

Benefits of cloud optimization

What are cloud optimization services?

Public cloud services providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have over 500,000 distinct prices and technical combinations that can overwhelm the most experienced IT organizations and business units. Luckily, there are already services that can help your organization achieve the cloud optimization it needs to drive business outcomes. Cloud optimization services help your organization identify areas of improvement in your cloud for cost savings and efficiency, create an optimization strategy for your organization, and can manage your cloud infrastructure for continuous optimization.

At 2nd Watch, we take a holistic approach to cloud optimization. We have developed various optimization pillars based on real-time data to ensure your cloud environments are running as efficiently as possible. Behind our solutions for cloud optimization is a team of experienced data scientists and architects that help you maximize the performance and returns of your cloud assets. Our services offerings for cloud optimization at 2nd Watch include:

What are cloud optimization services

  • Strategy & Planning: Define your optimization strategy with our proven methodology, tailored to meet your desired business outcomes and maximize your results.
  • Cost Optimization Assessment: Gain the visibility necessary to make data-driven decisions. Identify opportunities across our Pillars of Optimization to maximize cost savings and cloud environment efficiency.
  • Spot Instance & Container Optimization: Save up to 90% compared to traditional cloud infrastructure by running both Instances/VMs and Containers on spot resources for relevant workloads.
  • Multi-Cloud Optimization: Cloud optimization on a single public cloud is one challenge but optimizing a hybrid cloud is a whole other challenge. Apply learning from your assessment to optimize your cloud environment for AWS, Microsoft Azure, Google Cloud, and VMware on AWS.
  • Forecasting, Modeling, & Analytics: Understand your past usage, and model and forecast your future needs with the analytical data needed for visibility across your organization.

Our cloud optimization process starts with data, and you have a lot of it. But data alone can lead you astray yielding wasted resources and overspend. There are many other factors to evaluate, such as EDP/EA agreements and Savings Plans/RI Purchases, to ensure you choose the most cost-effective option for your business. Strategically, our data scientists and architects map connections between data and workloads. We then make correlations between how workloads interact with each resource and the optimal financial mechanism to reach your cloud optimization goals.

Cloud Optimization with 2nd Watch

Working with a managed cloud service provider like 2nd Watch will give your organization the expertise needed for cloud optimization. If you want to learn more about cost savings or are interested in fully optimizing your cloud infrastructure, contact us to take your next steps.

 

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Optimizing your environment using AWS Savings Plans

Surprisingly, AWS has very quietly released a major enhancement/overhaul to purchasing compute resources up front. To date, purchasing Reserved Instances (Standard or Convertible) has offered AWS users great savings for their static workloads. This works because static workloads tend to utilize a set number of resources and RIs are paid for in advance, thereby justifying the financial commitment.

That said, how often do today’s business needs remain constant, particularly with today’s product development? So, until now, you had two choices if you couldn’t use your RIs: take the loss and let the RI term run out or undertake the hassle of selling it on the marketplace (potentially for a loss). AWS Savings Plans, on the other hand, provide a gigantic leap forward in solving this problem. In fact, you will find that these AWS Savings Plans provide far more flexibility and return for your investment than the standard RI model.

Optimizing your environment using AWS Savings Plans

Here is the gist of the AWS Savings Plans program, taken from the AWS site:

AWS Savings Plans is a flexible pricing model that provides savings of up to 72% on your AWS compute usage. This pricing model offers lower prices on Amazon EC2 instances usage, regardless of instance family, size, OS, tenancy or AWS Region, and also applies to AWS Fargate usage.

AWS Savings Plans offer significant savings over On Demand, just like EC2 Reserved Instances, in exchange for a commitment to use a specific amount of compute power (measured in $/hour) for a one- or three-year period. You can sign up for Savings Plans for a 1- or 3-year term and easily manage your plans by taking advantage of recommendations, performance reporting and budget alerts in the AWS Cost Explorer. (Jeff Barr, AWS, 11.06.2019)

This is HUGE for AWS clients, because now, for the first time ever, savings can also be applied to workloads that leverage serverless containers—as well as traditional EC2 instances!

Currently there are two AWS Savings Plans, and here’s how they compare:

EC2 Instance Savings Plan Compute Savings Plan
Offers discount levels up to 72% off on-demand rates (same as RIs). Offers discount levels up to 66% off on-demand rates (the same rate as Convertible RIs).
Any changes in instances are restricted to the same AWS region. Spans regions. This could be a huge draw for companies with need for regional or national coverage.
Restricts EC2 instance types to the same family, but allows change in instance size and OS (e.g., t3.medium to t3.2xlarge). More flexible. Does not limit EC2 instance families or OS, and therefore, you are no longer locked into a specific instance family at the moment of purchase, as you would be with a traditional RI.
EC2 instances only: Similar to convertible RIs, this plan allows you to increase instance size, with a new twist: you can also reduce instance size! Yes, this means you may no longer have to sell your unused RIs on the marketplace! Allows clients to mix-and-match AWS products, such as EC2 and Fargate; extremely beneficial for clients who use a range of environments for their workloads.
BOTTOM LINE: Slightly less flexible, but you garner a greater discount. BOTTOM LINE: More flexible, but with less of a discount.

As with standard RI purchases, understanding your workloads will be key to determining when to use AWS Savings Plans vs. standard RIs (RIs aren’t going anywhere, but we recommend that Savings Plans be used in place of RIs moving forward) vs. On-Demand (including analysis of potential savings from auto-parking, seasonality, elasticity, and so on).

Sound a bit overwhelming? Fear not! This is where 2nd Watch’s Cloud Optimization service excels! Enrollment starts with a full analysis of your organization’s usage, AWS environment, and any other requirements/restrictions your organization may have. The final result is a detailed report, expertly determined by our AWS-certified optimization engineers, with our savings findings and recommendations—customized just for you!

Due to the nature of AWS Savings Plans, they will bring the most immediate value to clients who are either new to AWS or don’t have any RI commitments currently on their account. This is due to the fact that AWS Savings Plans cannot, unfortunately, replace existing RI purchases. Whatever your goals, our optimization experts are ready to help you plan the most strategically efficient and cost effective “next step” of your cloud transformation.

And that’s just the beginning

If you think that AWS Savings Plans may benefit your new or existing AWS deployment, contact us to jumpstart an analysis.

-Jeff Collins, Cloud Optimization Product Management

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Well-Architected Framework Reviews

“Whatever you do in life, surround yourself with smart people who argue with you.” – John Wooden

Many AWS customers and practitioners have leveraged the Well-Architected Framework methodology in building new applications or migrating existing applications. Once a build or migration is complete, how many companies implement Well-Architected Framework reviews and perform those reviews regularly? We have found that many companies today do not conduct regular Well Architected Framework reviews and as a result, potentially face a multitude of risks.

What is a Well-Architected Framework?

The Well-Architected Framework is a methodology designed to provide high-level guidance on best practices when using AWS products and services. Whether building new or migrating existing workloads, security, reliability, performance, cost optimization, and operational excellence are vital to the integrity of the workload and can even be critical to the success of the company. A review of your architecture is especially critical when the rate of innovation of new products and services are being created and implemented by Cloud Service Providers (CSP).

2nd Watch Well-Architected Framework Reviews

At 2nd Watch, we provide  Well-Architected Framework reviews for our existing and prospective clients. The review process allows customers to make informed decisions about architecture decisions, the potential impact those decisions have on their business, and tradeoffs they are making. 2nd Watch offers its clients free Well-Architected Framework reviews—conducted on a regular basis—for mission-critical workloads that could have a negative business impact upon failure.

Examples of issues we have uncovered and remediated through Well-Architected Reviews:

  • Security: Not protecting data in transit and at rest through encryption
  • Cost: Low utilization and inability to map cost to business units
  • Reliability: Single points of failure where recovery processes have not been tested
  • Performance: A lack of benchmarking or proactive selection of services and sizing
  • Operations: Not tracking changes to configuration management on your workload

Using a standard based methodology, 2nd Watch will work closely with your team to thoroughly review the workload and will produce a detailed report outlining actionable items, timeframes, as well as provide prescriptive guidance in each of the key architectural pillars.

In reviewing your workload and architecture, 2nd Watch will identify areas of improvement, along with a detailed report of our findings. A separate paid engagement will be available to clients and prospects who want our AWS Certified Solutions Architects and AWS Certified DevOps Engineer Professionals to remediate our findings. To schedule your free Well-Architected Framework review, contact 2nd Watch today.

 

— Chris Resch, EVP Cloud Solutions, 2nd Watch

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Budgets: The Simple Way to Encourage Cloud Cost Accountability

Controlling costs is one of the grea challenges facing IT and Finance managers today.  The cloud, by nature, makes it easy to spin up new environments and resources that can cost thousands of dollars each month. And, while there are many ways to help control costs, one of the simplest and most effective methods is to set and manage cloud spend-to-budget. While most enterprise budgets are set at a business unit or department, for cloud spend, mapping that budget down to the workload can establish strong accountability within the organization.

One popular method that workload owners use to manage spend is to track month-over-month cost variances.  However, if costs do not drastically increase from one month to another, this method does very little to control spend. It is only until a department is faced with budget issues that workload owners work diligently to reduce costs.  That’s because, when budgets are set for each workload, owners become more aware of how their cloud spend impacts the company financials and tend to more carefully manage their costs.

In this post, we provide four easy steps to help you manage workload spend-to-budget effectively.

Step 1: Group Your Cloud Resources by Workload and Environment

Use a financial management tool such as 2nd Watch CMP Finance Manager to group your cloud resources by workload and its environment (Test, Dev, Prod).  This can easily be accomplished by creating a standard where each workload/environment has its own cloud account, or by using tags to identify the resources associated with each workload. If using tags, use a tag for the workload name such as workload_name: and a tag for the environment such as environment:. More tagging best practices can be found here.

Step 2: Group Your Workloads and Environments by Business Group

Once your resources are grouped by workload/environment, CMP Finance Manager will allow you to organize your workload/environments into business groups. For example:

a. Business Group 1
i. Workload A
1. Workload A Dev
2. Workload A Test
3. Workload A Prod
ii. Workload B
1. Workload B Dev
2. Workload B Test
3. Workload B Prod
b. Business Group 2
i. Workload C
1. Workload C Dev
2. Workload C Test
3. Workload C Prod
ii. Workload D
1. Workload D Dev
2. Workload D Test
3. Workload D Prod

Step 3: Set Budgets

At this point, you are ready to set up budgets for each of your workloads (each workload/environment and the total workload as you may have different owners). We suggest you set annual budgets aligned to your fiscal year and have the tool you use programmatically recalculate the budget at the end of each month with the amount remaining in your annual budget.

Step 4: Create Alerts

The final step is to create alerts to notify owners and yourself when workloads either have exceeded or are on track to exceed the current month or annual budget amount.  Here are some budget notifications we recommend:

  1. ME forecast exceeds month budget
  2. MTD spend exceeds MTD budget
  3. MTD spend exceeds month budget
  4. Daily spend exceed daily budget
  5. YE forecast exceeds year budget
  6. YTD spend exceeds YE budget

Once alerts are set, owners can make timely decisions regarding spend.  The owner can now proactively shift to spot instances, purchase reserved instances, change instance sizes, park the environment when not in use, or even refactor the application to take advantage of cloud native services like AWS Lambda.

Our experience has shown that enterprises that diligently set up and manage spend-to-budget by workload have more control of their costs and ultimately, spend less on their cloud environments without sacrificing user experience.

 

–Timothy Hill, Senior Product Manager, 2nd Watch

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