Salesforce.com: How to Reduce and Control the Rising Cost of Cloud Applications

22 Mar 2019

Salesforce.com is one of the world’s most popular applications, but with 20-30% of cloud budgets wasted on unallocated, unused and under-utilized licenses, how can organizations reduce and control costs?

Based on extensive work undertaken by Certero, on average organizations waste 20-30% of their cloud budgets on unallocated, unused and under-utilized licenses. In almost all cases, this is caused by a lack of visibility into what cloud applications have been deployed across the IT estate, what those applications are used for, who is managing them and how much they cost.

The reason why many enterprises are in this position is an over eager desire to rush to the cloud. The attraction of the cloud is causing exponential growth in SaaS, PaaS and IaaS investments, with many organizations diving head-first into this brave new world without examining the hidden dangers of Shadow IT, Cloud Sprawl and Bill Shock.

 

What is Shadow IT, Cloud Sprawl and Bill Shock?

Shadow IT is one of the biggest hidden dangers for cloud adoption and can create significant security risks and cost control challenges. To help explain, Shadow IT is systems that exist within enterprises without explicit organizational approval, or applications specified and deployed by departments other than IT. The systems or applications deployed have been done so without the awareness of IT, who also do not or cannot support it.

Cloud Sprawl, on the other hand, usually occurs when an organization fails to adequately monitor and manage its cloud instances. It can also refer to the purchase and deployment of applications such as Salesforce.com, Office 365, G Suite and others, where user accounts are paid for but not used.

The culmination of Shadow IT and Cloud Sprawl is Bill Shock, which is when monthly or annual bills are received by the organization with unexpected charges or increases that have to be paid. In most cases, Bill Shock happens when employees within an organization sign up to cloud applications at significantly discounted rates, without following formal IT and/or procurement processes. At the point when the renewal is due, the amount owed dramatically increases. Bill Shock can also be caused by slow incremental increases in the cloud application’s user-base, the accumulation of unknown or unmanaged cloud instances, or increases in the consumption of resources within applications that lead to subscriptions being upgraded. What starts off as a small cost eventually grows wild, and within in a short space of time those costs spiral out of control. In some cases Bill Shock can be extreme and cost enterprises hundreds of thousands, if not millions. Multiply this across a number of cloud applications and the problem becomes a significant risk.

 

Managing Salesforce.com

Due to its extensive use across the globe, Salesforce.com is one cloud application in particular that is causing problems for many organizations. Like a garden without a gardener to cut the grass or prune the hedges, Salesforce.com instances are largely left unmanaged and grow wild in terms of users, data records, storage consumption and so on. As employees leave and new employees join, accounts are often not reallocated and organizations begin to collect unallocated, unused or under-utilized licenses and costs.

Similarly, admin users can install applications from the Salesforce.com AppExchange. These apps are often implemented over time without control, clogging the Salesforce.com instance with a sprawl of out dated, legacy applications. Organizations have many limits within their instance, such as number of API calls, data fields and so on. By adding new applications into Salesforce.com, some of these limits are in danger of being hit. For example, if API calls exceed the Salesforce determined limit, critical functionality stops working for 24 hours until the system is reset, which affects the management and integrity of the CRM data and can stop marketing automation and other processes from triggering.

 

Reducing and controlling applications and costs

To control cloud applications like Salesforce.com, organizations must maintain effective governance and real-time visibility of their cloud estate. However, the administration of policies and processes designed to support this are imperfect, which means things will always slip through the net. With Salesforce.com, employees will always install apps into the instance, subscribers will always exceed license limits and leavers’ licenses will not always get re-harvested.

The only way to reduce costs and gain control is through Cloud Asset Management solutions such as Certero for Cloud, which enables organizations to automate the collation and presentation of data from cloud applications into one place. This gives organizations complete visibility and control over users, subscriptions, storage consumption, activities, usage, costs and more, helping to manage and control applications and reduce their costs.

Want to control the cost of your cloud applications and environments?

[.as-a-service] Digital Transformation

Certero help organizations Digitally Transform their outdated operations and technologies in days and weeks not years. All of Certero’s solutions can be delivered as SaaS.

Certero Unified Platform
Learn more about Certero’s truly unique ‘unified’ platform.

Digital Transformation Edition
Transform in days and weeks, not months and years, start your journey now.

Verified Oracle LMS/GLAS Solution
Verified LMS (License Management Services), now GLAS (Global Licensing & Advisory Services) solution.

SaaS & Cloud Management
Manage Bill Shock, Cloud Sprawl, Toxic Consumption.

Enterprise Standard Edition – ITAM / SAM for Wintel
Default solution to manage ITAM/SAM for a Wintel environment. 

Enterprise Premium Edition – ITAM / SAM for Wintel
All you need in one place to manage your ITAM/SAM for a Wintel & Citrix environment. 

Datacenter
Stand-a-lone or holistic solutions for IBM, SAP and Oracle.

Software License Compliance
One Stop Shop, products and services for any solution – all in one

Business Intelligence Solution
See how to turn DATA into INFORMATION then transform into KNOWLEDGE, all in a few clicks. 

IT Asset Visibility
Find out: What do I own? Where is it located? Who is using it?

ITSM & CMDB Integration 
Populating the CMDB with ‘Quality’ asset information is more critical than ever

Everything in One place, True Unification

IT Hardware, Software, SaaS and Cloud Asset Management products that can run ‘stand-a-lone’ or ‘holistically’ and optimally together as a single solution, no dependencies. True unification across all asset and platforms and all delivered as SaaS. All of Certero’s products have the best TTV (Time to Value) by some distance.

Certero for Enterprise ITAM
Networks, printers, routers, Wintel, Mac, Linux, zLinux, Unix, all virtualizations and much more…

Certero for Enterprise SAM
Focused on Wintel software vendors, including automated solutions for Microsoft, Adobe and much more…

Certero App Centre 
Enterprise ‘Application Portal’ for Self-Service application provisioning.

Certero for Mobile
Go beyond standard MDM and deliver full management and security for your mobile workforce.

Certero SRDB (Software Recognition)
Transform raw software inventory data into actionable intelligence about application usage and licensing.

Certero for Oracle 
Optimize your Oracle Database, Middleware and E-Business Suite applications.

Certero for IBM
Discover and manage all IBM software & entitlements across the network. Dual Inventory, ILMT and Certero.

Certero for SAP Applications
Managing and automating the analysis of complex SAP named user and engine licenses across your estate. 

Passworks
An intuitive self-service password reset solution that can reduce service desk calls by 30%. 

PowerStudio
PC Power Management solution. Save money and reduce your carbon footprint. 

World Class Expertise ‘When you need them’.

A ‘One Stop Shop’ with the best technology and People using establish ISO standards.

SAM Managed Services
Expertise and technology to realize your license management & technology governance goals.

Discovery and Inventory
Achieve full visibility of all computers, servers and other IT assets across all platforms and locations. 

ELP and Optimization
Build and deliver ELPs & optimization reports for key software publishers.

SAM Maturity Assessment
Enhance your SAM program with the insight of focused & relevant improvement recommendations. 

Training and Education
Quick & effective knowledge transfer from Certero’s licensing and vendor experts. 

Gartner Peer Insights Customers’ Choice

Rated #1 for SAM Customer Satisfaction year after year, after year

Advice and Guidance
For the latest in ITAM, SAM, Cloud and SaaS Asset Managemet .

White Papers and eBooks 
Download the latest white papers and eBooks for key insights and guides.

News
Read the latest news from Certero and the industry.

Events and Webinars
Keep up to date with Certeros latest webinars and events.

 

Videos
View our range of product videos, webinars and customer case studies. 

Data Sheets
Download our datasheets which highlight the key benefits and features of our world class products and services. 

Case Studies 
See how organization around the globe change they way they [do IT].

We think [and do] IT Differently.

We don’t believe in claiming to be something we’re not. We will not do mediocre, average, indifferent, or outdated. We are different and will do it differently.

About Us
Get to know us more

Our Story
See how our approach is different

Our Journey
A timeline of events

Our Vision, Mission and Purpose
Mission, Purpose and Values

Careers
Browse our current roles

Locations
Find our nearest location