COVID-19

We want to help!

It’s hard not to be impacted by the devastating effects of Covid-19. The unprecedented restrictions, social distancing, losing employment and sickness has had a profound impact on our society, not to mention those who have lost loved ones. We want to help!

We have been looking at ways to help those affected and one practical way is to provide practical help to those whose livelihoods have been impacted.

At TIQQE, each day consists of reading different CV’s from applicants, listening to our customers needs and understanding what they require. We have together read 1000s of CV’s, received 1000s of customer requests, prepared 1000s of employees before going for a customer interview and we think that this is an area in which we can help.

If you are looking for a new job and need help with the following:

  • Putting together your CV
  • Personal letter
  • Test run an interview
  • Pep talk
  • Or just someone to listen

Please feel free to contact us

Jacob Welsh, jacob.welsh@tiqqe.com, +46 768 100714

Sofia Sundqvist, sofia.sundqvist@tiqqe.com, +46 768 100715

COVID-19

4 ways to reduce cost and increase liquidity.

Many companies are under tremendous financial pressure due to the COVID-19 virus. We sat down to figure out what we can do to help and came up with 4 ways of how we can reduce cost and increase liquidity in the short term for a company. We are posting these 4 ideas in a blog series.

4 ways to reduce cost and increase liquidity

We provide 4 hands-on ideas of how you can reduce cost and increase liquidity in the short term. All ideas include financial examples to provide a clear view of the potential of each idea in your context. We have created 4 business case templates to help you customize and translate each idea into tangible value for your organization, just give us a call and we will help you. Bring some good news to your CFO in these challenging times with some hands-on, concrete and proactive ideas of how to reduce IT costs.

Idea #1 – Hardware refresh

With a depreciation cycle of 36 months, you’re looking at a 33% replacement of servers and storage in your datacenter this year. Now is a good time to challenge the default decision to replace those servers with new ones and consider cloud instead.

Read blog post

Idea #2 – [ insert integration product here ] replace

Every organization needs to connect data between applications and databases to support their business processes. There are a lot of ways of solving the integration need but many companies have bought an integration platform from one or more of the major product vendors in the market such as Microsoft Biztalk, Tibco, Mulesoft, IBM Websphere etc. If you’re one of them, we have good news for you and your CFO.

Read blog post

Idea #3 – incident automation

Incident handling is often a highly manual process in most companies. It requires 1st, 2nd and 3rd line resources in a service desk to manage error handling of the applications, databases and infrastructure. Further more, some expert forum, or Change Advisory Board, are usually in place to work with improvements to reduce tickets and incidents. A lot of people is required just to keep the lights on. Imagine if you could automate most of your incidents.

Read blog post

Idea #4 – infrastructure optimization

Managing cloud infrastructure is different to managing infrastructure on-prem. It’s easy to provision new resources but it’s equally easy to forget to decommission resources when they’re not needed. Further more, performance tuning is often not part of daily routines and only performed when there are performance problems. Optimization is not supposed to be performed occasionally but rather on a regular basis to ensure a cost effective use of cloud computing. If you need to find quick ways of reducing your costs, optimizing will be one tool to use to bring good news to your CFO.

Read blog post

COVID-19

4 ways to reduce cost and increase liquidity. #4

Many companies are under tremendous financial pressure due to the COVID-19 virus. We sat down to figure out what we can do to help and came up with 4 ways of how we can reduce cost and increase liquidity in the short term for a company. We are posting these 4 ideas in a blog series and in this blog post, we will present the fourth and final idea in the series to improve your financials – optimize your AWS infrastructure.

#4 – Optimize your AWS infrastructure

This fourth and last post in our series of “4 ways to reduce cost and increase liquidity” we will focus on optimizing your AWS infrastructure. There are great potential to reduce your AWS bill by optimizing.

Managing cloud infrastructure is different to managing infrastructure on-prem. It’s easy to provision new resources but it’s equally easy to forget to decommission resources when they’re not needed. Further more, performance tuning is often not part of daily routines and only performed when there are performance problems. Optimization is not supposed to be performed occasionally but rather on a regular basis to ensure a cost effective use of cloud computing. You can read more about optimizing here.

We have performed a number of optimization projects during the years and we always identify substantial and remarkable savings. If you need to find quick ways of reducing your costs, optimizing will be one tool to use to bring good news to your CFO.

Example – a company with a monthly billing of 150 000kr

You need to consider this example as generic because it very much depends on what services you use, what share of serverless vs. EC2 instances you have etc. For the purpose of this example, we assume you have a quite common setup in AWS which we normally find when we engage with customers.

This company have a monthly billing of 150kSEK per month. We’re comparing the annual AWS cost as-is with an optimized service from us.

Year 0 represents the investment year and in this case it includes an initial analysis of 30kSEK. After reviewing the infrastructure, we are able to present a more detailed business case with a much higher precision than this example.

This company have an annual cost of 1.8MSEK per year. They would need to invest 30kSEK to enable the optimization service from us which in turn will lower the AWS cost to 1MSEK per month including a continuous optimization service from us. The total cost as-is would be 10.8MSEK over 6 years compared to 6.3MSEK for the optimization service.

AWS infrastructure as-is versus an AWS optimization service

The graph below shows yearly savings and accumulated savings over 6 years. This company would save 700kSEK the first year and 756kSEK the following years. The return on investment in this example is 7.2 months. The accumulated savings is 4.5MSEK over 6 years, or 42%.

Accumulated savings of an optimized AWS infrastructure

As mentioned before, there are of course a lot of ifs and buts in any calculation and specifically in this case as it heavily depends on how the infrastructure is set up and managed today. We have created a template for helping companies calculate a comparison between as-is and an optimization service from us. The initial analysis will reveal the potential in your specific company.

Please contact me or any of my colleagues if you would like to do the exercise for your company, we’re here to help.

This is the final example of how we can help you reduce costs and increase liquidity in the short term. Please check out the previous 3 ideas.

#1 – Hardware refresh

#2 – [ insert integration product here ] replace

#3 – Incident automation

COVID-19

4 ways to reduce cost and increase liquidity. #3

Many companies are under tremendous financial pressure due to the COVID-19 virus. We sat down to figure out what we can do to help and came up with 4 ways of how we can reduce cost and increase liquidity in the short term for a company. We are posting these 4 ideas in a blog series and in this blog post, we will present the third idea to improve your financials – automate your incident handling.

#3 – Automate your incident handling

This third tip of reducing cost and increasing liquidity only apply for organizations already running workloads in AWS. However, if you’re interested in our first tip, move to cloud instead of replacing servers which is due for refreshment this year, this apply for you as well.

Incident handling is often a highly manual process in most companies. It requires 1st, 2nd and 3rd line resources in a service desk to manage error handling of the applications, databases and infrastructure. Further more, some expert forum, or Change Advisory Board, are usually in place to work with improvements to reduce tickets and incidents. A lot of people is required just to keep the lights on.

What if you could set up monitoring alerts that automatically triggers automated processes and resolves the incidents before the users even notice them and place a ticket to your service desk. Sounds like science fiction? Check out Max Koldenius TIQQE Talk about AutoOps.

Let’s put some numbers on such a scenario.

Example – a company with 1000 incidents per month

In this example, we have a company with 1000 incidents per month. We assume an average cost of 156kr for handling an incident which is based upon a public report of service desk costs.

We’re comparing the manual cost with an automated incident handling service from us. We’re practicing automated incident handling in our own service desk and we’re currently managing 90% of all incidents by automation. In this example, we assume a 70% automation potential.

Year 0 represents the investment year and in this case it includes an incident analysis and the setup of the service, a total of 80kSEK.

This company would have a yearly cost of 1.9MSEK for manual incident handling. They would need to invest 80kSEK to enable automated incident handling and would then have a yearly cost of 768kSEK for the automation service from us. The accumulated cost for manual incident handling would be 11.2MSEK over 6 years compared to 4.7MSEK for the automation service.

Comparison between manual incident handling and automation

The graph below shows savings per year and accumulated savings. This company would save 1MSEK the first year and 1.1MSEK per year the following years. The return on investment in this example is 5.4 months. The accumulated savings equals 6.5MSEK in 6 years, or 58%.

Accumulated savings of incident automation

There are of course a lot of ifs and buts in any calculation and the numbers are just interesting if you can identify yourself in them. We have created a template for helping companies calculate a comparison between manual and an automated incident handling service from us. We can customize most of the data to simulate your specific prerequisites to make it as accurate as possible.

Please contact me or any of my colleagues if you would like to do the exercise for your company, we’re here to help.

Stay tuned for more examples of how we can help you reduce costs and increase liquidity.

COVID-19

4 ways to reduce cost and increase liquidity. #2

Many companies are under tremendous financial pressure due to the COVID-19 virus. We sat down to figure out what we can do to help and came up with 4 ways of how we can reduce cost and increase liquidity in the short term for a company. We are posting these 4 ideas in a blog series and in this blog post, we will present the second way to improve your financials – replace your integration plattform.

#2 – [ insert integration product here ] replace

Every organization needs to connect data between applications and databases to support their business processes. There are a lot of ways of solving the integration need but many companies have bought an integration platform from one or more of the major product vendors in the market such as Microsoft Biztalk, Tibco, Mulesoft, IBM Websphere etc. If you’re one of them, we have good news for you and your CFO.

According to Radar Group, who made a survey of 200 Swedish companies a few years back, integration is a hidden cost bomb. On average, companies spend 140 000 SEK in maintenance cost per year and per integration. On average, a company with 300 employees have 50 integrations if you’re in the retail or in the distribution sector, 70 integrations if you’re in the manufacturing sector according to the survey. The cost of integration is substantial.

Microsoft Biztalk

If you’re running your integrations on Microsoft Biztalk, you’re probably considering an upgrade from version 2016 to 2020 if you haven’t already upgraded. Upgrades are often a major effort in time, resources and cost but are of course not unique for Microsoft, it’s part of using any commercial software. If you’re planning an upgrade, you have much to gain by challenging that upgrade and consider cloud instead.

Example – a company with 100 integrations

In this example, we’re looking at a company with 100 integrations. We’re not including an upfront cost of an upgrade so again, if you’re planning an upgrade you will have an even better business case.

We’re comparing the existing maintenance cost with a managed serverless integration service from us. The business case includes the transformation cost of rebuilding all integrations and deploying them in AWS. Monitoring, incident and problem management is included in the price to be fully comparable. Hardware, licenses and High Availability are included as well.

Year 0 represents the investment year and in this case, it’s the transformation cost of rebuilding the existing integrations to cloud. There are no investments for “as is” if you’re not planning for an upgrade.

This company would have a yearly cost of 14MSEK to manage their existing integrations, all included except external consultants for management and monitoring. They would need to invest 6MSEK in transformation costs and the recurring cost for the cloud solution would be 6MSEK per year, all included. The accumulated cost as-is would be 70MSEK over 5 years compared to cloud which would be 36MSEK including the transformation cost of 6MSEK.

Cost comparison between using an existing integration product vs. cloud

The graph below shows savings per year and accumulated savings. This company would save 2MSEK the first year and 8MSEK per year the following years. The return on investment in this example is less than a year, 10.3 months. The accumulated savings equals 34MSEK in 5 years, or 49%.

To shorten the return on investment, AWS offers generous fundings to reduce the transformation costs. Such funding is not included in this business case so there might be room for improvements.

Business case of using cloud, accumulated savings for 5 years.

There are of course a lot of ifs and buts in any calculation and the numbers are just interesting if you can identify yourself in them. We have created a template for helping companies calculate a comparison between keeping the existing integration platform versus a cloud based integration service from us. We can customize most of the data to simulate your specific prerequisites to make it as accurate as possible.

Please contact me or any of my colleagues if you would like to do the exercise for your company, we’re here to help.

Stay tuned for more examples of how we can help you reduce costs and increase liquidity.

COVID-19

4 ways to reduce cost and increase liquidity. #1

Many companies are under tremendous financial pressure due to the COVID-19 virus. We sat down to figure out what we can do to help and came up with 4 ways of how we can reduce cost and increase liquidity in the short term for a company. We are posting these 4 ideas in a blog series and in this blog post, we will present the first idea to improve your financials – hardware refresh. Most importantly, we will put numbers on such a refreshment which would cheer up many CFO’s today.

#1 – Hardware refresh in your datacenter

With a depreciation cycle of 36 months, you’re looking at a 33% replacement of servers and storage in your datacenter this year. Now is a good time to challenge the default decision to replace those servers with new ones and consider cloud instead. Here are a few reasons why:

  • You don’t have to make the capital expenditure upfront which will have a positive impact on your cashflow and your balance sheet.
  • You will lower your cost by an average of 30-40%
  • You don’t have to buy capacity to last for 36 months with low utilization the first couple of years.
  • You pay for what you use and you can scale up or down in capacity by pressing a button.
  • You are making the inevitable move to cloud sooner than later

Example – a company with 300 servers, 50TB of storage

In this example, we’re looking at a company with a total of 300 servers and 50 Terabyte of storage running in a datacenter or a co-location. They have a depreciation cycle of 36 months which means that they normally refresh 33% of the estate each year, in this case 99 servers + 16TB of storage.

The graph shows a cashflow comparison between replacing the hardware compared to running the same workload in the cloud. The greatest benefit from a financial perspective becomes obvious in the graph, you don’t have the capital expenditure upfront when using cloud. This company is looking at an upfront cost of 16.1MSEK. Instead of spending 16MSEK in refreshing hardware, it will do more good as free cash and liquidity.

Cashflow comparison of replacing 99 servers and 16TB storage compared to cloud

Another observation is that cloud seems more expensive on a yearly basis and that’s true. However, when considering the upfront costs, the accumulated savings are considerable, see graph below. Beside keeping 16MSEK in the balance sheet, this company would save 4.5MSEK per year or 27MSEK in 6 years by using cloud instead of refreshing the servers.

Accumulated cost comparison between on-premise and cloud

In this example, the customer are paying for the transition project and the cost is included in the business case. Most of the time, AWS offers generous fundings to reduce the so called “migration bubble”, which is the time when you run the workload both on-premise and in cloud during the migration project.

There are of course a lot of ifs and buts in any calculation and the numbers are just interesting if you can identify yourself in them. We have created a template for helping companies calculate a comparison between doing a hardware refresh versus cloud. We can customize most of the data to simulate your specific prerequisites to make it as accurate as possible.

Please contact me or any of my colleagues if you would like to do the exercise for your company, we’re here to help.

Stay tuned for more examples of how we can help you reduce costs and increase liquidity.