COGS savings project at leading SaaS B2B company

BACKGROUND: This efficiency project was done for a leading SaaS company in the hospitality industry. Cloud hosting COGS grew faster than revenues and the company wanted help turning that around to a scaling business model. BEA Advisors was engaged to investigate potential savings and suggest measures to sustainably improve COGS KPIs. Potential savings of 35% were identified. After a few months, the Azure cost run rate has been reduced by ~25%. Activities to harvest the remaining savings potential are ongoing.

THE PROJECT: BEA Advisors applied its proven COGS Efficiency Framework based on an effort/impact assessment of activities to address the cost problem. The long-list of potential savings initiatives was assembled through analysis of operational & financial data and interviews with key stakeholders. The activities were ranked and sequenced in time with a clear follow-up plan to secure that the expected savings were realized.

BEA Advisors together wilt the client’s Product & Engineering team also designed a Cloud Spend Governance Framework to secure optimal balance between performance and cost by introducing clear functional roles & responsibilities and implementing a robust, yet simple, Cloud Purchase Process.