When ProsperOps started in 2018, we wanted to help companies conquer cloud economics. At the time, most AWS users knew they were spending too much on the cloud and manual attempts to apply Savings Plan and Reserved Instances were likely not achieving the maximum savings outcomes possible.
We set out on a mission to develop an AIOps product for FinOps, introducing an autonomous cost optimization tool that automatically manages AWS discount instruments (like RIs and Savings Plans) to maximize savings and minimize commitment risk.
However, the scope of any mature FinOps practice includes more than discount management alone. That’s why we’re proud to announce our partnership with CloudZero, to provide our customers cost intelligence and visibility, in addition to automated commitment management.
CloudZero specializes in helping companies understand where their cloud spend is going and why – by aligning cost to business dimensions, like products, features, and customers – then making it easily consumable for everyone. With CloudZero, engineering, finance, and other stakeholders can start with a shared understanding of spend to help them make better decisions and improve unit economics.
Here’s what makes the combination of ProsperOps and CloudZero so powerful.
Understand your Effective Savings Rate
Historically, AWS users have had no ROI metric to quantify the effectiveness of cloud financial management activities. Instead, they track total costs and savings and rely on input metrics like utilization and coverage. These metrics are important, but tell an incomplete story.
The fundamental question any practitioner wants to know is whether their activities are working, and if so, how effectively. In reality, the complexity of large commitment portfolios, differences in AWS discount options, dynamic compute fleets, per-second billing, unpredictable volatility, and more, make it extremely difficult to distill a single KPI.
That’s why ProsperOps introduced Effective Savings Rate (ESR), an objective FinOps metric which quantifies your bottom-line savings performance and, ultimately, the effectiveness of our cost optimization software and service. Based on your configurations, ProsperOps automatically takes actions to increase your ESR, providing one KPI that’s easy to track and benchmark across peers. AWS customers can now see their ESR metric within the CloudZero platform.
By integrating ESR within CloudZero’s cost intelligence platform, customers can monitor and gauge their savings performance, answering questions like:
- What impact has our cost optimization program had on ESR?
- What is our ESR for Spot usage, Reserved Instances, and Savings Plans?
- How does on-demand spend break down by service, region, instance type, and more?
ESR is a natural complement to CloudZero’s cost intelligence platform. CloudZero provides complete visibility into cloud spend, so teams can understand the cost of different aspects of their architecture or the cost to support a single customer. Together with ProsperOps, customers have visibility into spending and discounting, while they maximize efficiency in how they build.
Combine cost visibility with automated outcomes
ProsperOps helps organizations in the cloud automatically get the best returns (savings) on their discount portfolio. Now, CloudZero customers who also subscribe to ProsperOps benefit from both platforms.
CloudZero’s engineering-led solution for cloud cost management helps you build smarter, while ProsperOps centralizes and perfectly aligns your commitments to ensure you achieve optimal pricing.
Optimizing your cloud spend to maximize your Effective Savings Rate is important, because it is directly linked to your ROI—how much value you get out of your cloud investments. But, without business context applied to your cloud spending, deciding what is and isn’t cost-effective can be difficult.
FinOps teams need objective, real-time, dynamic insights into cloud spending, paired with fully automated rate optimization. The combination of CloudZero and ProsperOps gives you the tools you need to make cost efficiency an integral part of your cloud practice.