As organizations increasingly invest in SaaS applications, cloud governance is more important than ever. Apptio's new cloud capabilities can help.

As organizations increasingly invest in cloud solutions, the importance of effective SaaS application governance has never been greater. In 2016 alone, IDC predicts that software license complexity will indirectly cost organizations an average of 25% of their software license budgets and it's been estimated that 40% of data will be processed in the cloud by 2020.

Decision-Making Framework for the Cloud

Apptio introduced the “economic framework” for the cloud today at the 2016 TBM Conference. This framework, built into Apptio’s TBM applications, empowers CIOs and their teams to make strategic, informed decisions about how to best embrace IaaS and SaaS solutions in support of their innovation agenda and corporate goals. 

Apptio’s economic framework is a model for categorizing and measuring cloud costs in the context of an organization’s broader technology spending. With this framework, IT leaders are able to visualize how cloud services fit within their technology portfolio and make informed decisions about their level of cloud investment.

“In the modern enterprise IT organization, cloud services are one of the most valuable and disruptive forces. Cloud services provide an unmatched level of flexibility, but add layers of complexity and come at a cost. Apptio’s economic framework ingests and models these costs, from multiple vendors alongside all technology spend for the most comprehensive view of IT spending possible.”

Sunny Gupta, CEO of Apptio

Apptio has developed deep relationships with leading cloud IaaS providers, including Amazon Web Services and Microsoft Azure, to make data acquisition and modeling as simple as possible. Apptio and AWS have worked closely together to provide new product capabilities to allow our customers to further understand and optimize their usage of AWS. This includes new capabilities to understand and optimize AWS Reserved Instance (RI) spend and rich integration with AWS Trusted Advisor. As a result of this work, Apptio and AWS customers are now able to answer questions such as: 

  • What is my AWS Reserved Instance (RI) spend and what RIs should I buy?
  • Where can I recover costs in my public IaaS/PaaS service consumption? 
  • Which applications are most cost-effective to move to the cloud?


A Deeper Look into Cloud Spend

Elasticity and pay-as-you-grow features make cloud interesting, but there are more complex considerations once you get beyond lift and shift. With Apptio SaaS Insights, you can make economic decisions about adopting cloud technologies by taking a deep look into cloud spending for the most popular SaaS applications. Just announced at TBM Conference 2016, SaaS Insights incorporates direct feedback from more than 50 senior IT leaders. SaaS Insights enables IT leaders to get the most value out of their SaaS licenses by providing actionable insights into usage, adoption, and cost for the most commonly used enterprise applications like Salesforce and Office 365.

Despite understanding the potential benefits of effectively managing SaaS license usage, adoption, and cost, many organizations continue to overspend on SaaS licenses while others struggle to justify additional SaaS licenses. Typically, SaaS application owners are unable to access SaaS contract cost data, and vendor managers overseeing SaaS contracts are unable to access SaaS usage data. This lack of visibility into critical data across teams can lead to unused licenses, higher cost per license, and missed opportunities to negotiate better contract terms, ultimately preventing organizations from maximizing their return on investment.

According to a recent Harvey Nash/KPMG CIO survey, 31 percent of CIOs are investing significantly in SaaS this year. As more organizations turn to SaaS solutions to accelerate their business, effective SaaS license management is becoming more urgent for more users, with more licenses, and higher SaaS spend across multiple departments adding to the complexity.

As an addition to the Apptio Business Insights family of applications, SaaS Insights proactively manages application spending by correlating SaaS license utilization and adoption to license cost. Armed with this information, IT leaders are able to negotiate better SaaS contract terms and rates by replacing assumptions with facts. 

Here are the key benefits of SaaS Insights:

  • Proactively manage spend by correlating SaaS license usage and adoption to license costs
  • Leverage facts to clearly communicate with business partners about key factors influencing SaaS costs
  • Negotiate better SaaS contract terms and rates by replacing assumptions with facts
  • Right-size SaaS licenses by identifying users with low or no usage across SaaS services
  • Proactively manage SaaS service utilization to avoid hitting threshold limits
  • Minimize maintenance complexity by tracking utilization of custom SaaS configurations

The power of transparency to shape business consumption can be instrumental in adopting a more cost-effective cloud strategy. Apptio continues to help IT leaders foster the right discussions about the trade-offs of cost, risk, and performance.

Get the SaaS Insights data sheet to learn more about managing SaaS spend.