FinOps Case Study: Optimising Mobile App Costs in a leading consumer Telecommunications company with YäRKEN

Written by Yarken Team | Apr 26, 2024 2:38:46 PM

Case Study: Telecommunications Mobile App Optimization

A leading consumer telecommunications company aimed to refine its IT spending, specifically targeting the costs associated with their widely used mobile application. With a focus on achieving cost-effectiveness and transparency, the company sought to integrate detailed financial insights into their operations.

Key Challenge

The main challenge was a lack of clarity regarding the total cost of running their mobile application, including substantial AWS cloud expenses. This ambiguity made it difficult to engage in value-based discussions or effectively allocate costs to business units.

YäRKEN Solution

A comprehensive showback model was implemented to detail application costs, emphasizing AWS as a significant driver:

• License Cost: Direct application licensing fees.
• Labor Cost: Permanent and contracted employees.
• Shared Cost: IT Management, Security, and Compliance.
• AWS Cloud Spend: Detailed usage and optimization insights.

Strategic Value Realization

The implementation enabled the organization to:

• Collaborate with business unit leaders to align IT investments with corporate goals.
• Use project data for weighted cost allocation across supporting applications.
• Calculate unit cost per active user, providing actionable per-user impact metrics.

FinOps Principles Applied

1. Granular Cost Visibility

Deep insights into fund utilization across cloud and on-prem assets.

2. Strategic Financial Planning

Showback reports supported informed decision-making and financial health analysis.

3. Collaborative Governance

Fostered a partnership approach between IT and business unit stakeholders.

4. Value-Oriented Expenditure

Shifted dialogue from "total cost" to "value delivered" per cloud resource.

Notable Outcomes

• Substantial Cost Savings: Realized through strategic resource reallocation.
• Trend Monitoring: Continuous tracking of labor and AWS costs to avoid bill shock.
• Unit Economics: Unit price per user became a critical efficiency metric for future investment.

Conclusion

By enhancing visibility and strategic management of IT spending, YäRKEN empowered the company to achieve true cost-effectiveness. This deployment highlights the transformative impact of value-based IT financial governance on modern enterprise efficiency.

Optimizing unit economics for the digital era. Your smarter FinOps journey starts here.

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