MDSL, a global leader in Technology Expense Management ("TEM") solutions, has announced the general availability of their Cloud Services Expense Manager (CSEM) module as part of the MDSL TEM solution offering. The new module allows enterprise clients to manage spend for cloud services across Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). According to Gartner research, through 2020, 80% of organizations will overshoot their cloud IaaS budgets due to a lack of cost optimization approaches.*
“The cloud has become more ubiquitous and our enterprise clients continue to share their struggles managing the increasing costs, the sprawl of resources, and lack of management associated with it,” said Charles Layne, Chief Executive Officer of MDSL. “Given our history of managing complex technology spend within the enterprise, we are in a unique position to manage all types of cloud spend through the MDSL platform. By creating a tailored offering, with specific nomenclature and reporting for those who manage cloud assets, we’ve simplified the experience for our users and provided actionable business intelligence.”
CSEM is a cloud-based software solution that allows IT budget owners to manage the cost and usage of cloud resources across departments, projects, or individuals. Leveraging automated vendor API integrations to import detailed usage data (both billed and unbilled), users are able to configure business rules around the processing, allocation, and reporting of cloud expenses through a single, centralized expense management platform. Users can manage these cloud expenses alongside other complex technology spend categories within the MDSL solution to capture a total cost of ownership.
What separates the MDSL solution is the extensible technology that leverages a single, unified platform used for more than 20 years to manage enterprise technology and financial subscription services. The contract structure and instance billing of IaaS and PaaS mimic the structure and components of traditional fixed voice and data services. SaaS subscriptions behave similarly to traditional market data services like Bloomberg, Reuters, and FactSet, which MDSL manages for the largest financial institutions in the world.
Early adopters of the CSEM functionality experienced a large reduction in management overhead for administrative processes and valuable insight into the breadth of their cloud estate. One pilot customer, a $5B consumer products company, quickly discovered that while they had half the cloud accounts they originally expected, the spend on those accounts was more than twice what was budgeted. In addition, the CSEM uncovered a nearly $1M PaaS licensing fee which would have otherwise gone unnoticed.
Hyoun Park, CEO and Principal Analyst at Amalgam Insights, who regularly covers the technology expense management space, also made a prediction in a recent report on the growth of the market. Over the next five years, Amalgam estimates that about 20% of cloud infrastructure will be managed by third-parties, making cloud IaaS management roughly a $400 million market in 2022.
“Cloud expenses are simply another type of recurring technology spend that the enterprise needs to manage,” said Simon Mendoza, Chief Technology Officer at MDSL. “Given the size of these growing expenses, enterprises should implement standard processes for capturing, reporting and allocating not just for cloud expenses, but for all spend categories and gather intelligence across their entire technology estate.”
To learn more about the new MDSL CSEM features and functionality, including access to a client success story, visit https://www.mdsl.com/technology-expense-management/cloud-management.
*Gartner, How to Identify Solutions for Managing Costs in Public Cloud IaaS, 22 January 2018