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FinOps Case Study: Optimizing IT Spending in a NZ State Owned Enterprise with YäRKEN

4 minute read

Customer Overview
A leading state owned enterprise in New Zealand grappled with significant spend leakage within their IT infrastructure. The core challenge lay in the lack of transparency and accountability in their spending, hindering efficient budget allocation.

YäRKEN helped support the following core areas

 



Key Challenge
The enterprise lacked a systematic approach to tracking and optimizing costs across its web applications, mobile services, and cloud infrastructure.

YäRKEN Solution
The deployment of YäRKEN provided an all-encompassing view of the application spend and usage, enabling data-driven decision-making. Moreover, it facilitated a transparent cost allocation for mobile services and a more governable cloud environment through enhanced tagging strategies.

FinOps Principles applied

  1. Visibility and Cost Transparency

    YäRKEN's platform provided a centralized view of the application portfolio and integrated usage metrics, enabling a comprehensive understanding of costs and usage patterns.

  2. Cost Optimization

    Through detailed analysis facilitated by YäRKEN, the enterprise identified and decommissioned two unused applications, resulting in annual savings of approximately $140k. Additionally, by analyzing mobile service costs, they uncovered an opportunity to save $30k annually by optimizing variable costs.

  3. Governance and Control

    YäRKEN integrated with a cloud-managed service provider to ensure granular cost breakdowns and implemented a consistent tagging strategy for better cost control and accountability within the cloud environment.

  4. Alignment with Business Goals

    By aligning spending with the Technology Business Management (TBM) framework, the enterprise improved communication and understanding of IT costs and value across the organization.


Outcomes


By applying these FinOps principles and integrating YäRKEN into their IT infrastructure, the government enterprise successfully identified and halted approximately $170k in annual spend leakage. This optimization not only improved cost management but also enhanced operational transparency and alignment with strategic business goals.

 

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