How a major UK insurer saved $200k on their cloud bill
The UK insurance sector has been undergoing rapid digital transformation in recent years, with many insurers investing in cloud migration projects to modernise their technologies and the services they provide to their customers.
The customer is a major UK insurer which serves over 5 million customers with products ranging from life insurance, to pet insurance and more. Never a stranger to innovation, the company had migrated a significant proportion of their workloads to AWS over the past 2 years but were now facing spiralling cloud costs.
Cloudsoft performed a cost analysis of each AWS service used by the DAP teams, producing recommendations for immediate cost reduction improvements and steps that could be taken to move towards more proactive cloud financial management (FinOps) in the medium to longer term.
We estimated that improvements to the use of these services could save around $215,000 on the insurer’s AWS bill for DAP - around 20% of their annual spend.
AWS S3 - 80% saving
AWS Standard Storage Service (S3) is “object storage built to retrieve any amount of data from anywhere”. With inbuilt security, compliance and audit capabilities, scalability and a range of storage classes, AWS S3 is one of the cloud-provider's most well-utilised services.
Cloudsoft’s analysis indicated that the Insurer was not making effective use of these tiered storage classes, with all of their stored objects being held within the standard storage class. This is designed for frequent access, eg critical production data, and costs can be significantly reduced if non-critical data is moved to lower cost storage classes like S3 Glacier or, if the data is no longer needed, deleted.
AWS S3 accounted for 24% of DAP cloud spend, and we estimated that the insurer could save around 80% of their DAP S3 costs each month by utilising lower cost storage classes, implementing lifecycle policies and exploring intelligent tiering.
Amazon Redshift - 18% annual saving
Amazon Redshift is a data warehousing service, which uses SQL to analyse structured and semi-structured data across data warehouses, operational databases and data lakes.
Amazon Redshift costs made up 11% of the bill, but had increased 23% in 3 months in the production environment alone.
Cloudsoft recommended that the Insurer switch to Reserved Instances for their Redshift clusters to save 18% on their Redshift costs. Reserved Instances are a discount billing method, whereby you commit to a certain level of usage for a number of years in return for a lower unit cost.
AWS Glue - best practice and improved cost visibility.
AWS Glue is a serverless data integration service which is often used to discover, prepare and combine data for analytics, machine learning and application development. Cost for AWS Glue is driven by the number of Data Processing Units (DPU) consumed, which in the Ireland, eu-west-1 region is $0.44 per DPU per hour.
AWS Glue makes up 33% of the AWS bill, so judicious cost optimisation of this service could have a real impact on the bill. Cloudsoft identified that AWS Glue costs could be optimised by improving cost visibility and establishing best practices such as cost-conscious architecture and application design in the DAP team.
We also analysed and provided recommendations for:
Cloudsoft was able to identify 20% savings across the board, saving the firm in excess of $200,000 per year on the DAP AWS bill. The team is also adopting FinOps best practices to build, monitor, report and optimise in a cost-conscious way.
Want to see how much you could save on your cloud bill?
Book your free consultation with an experienced FinOps certified consultant today.
Cloudsoft are an AWS Advanced Consulting Partner and FinOps Certified Service Provider. We're proud to deliver expert professional and managed services around cloud migration, modernisation and cost optimisation, helping you drive real value from your cloud investment.