Integrating Sustainability
While it’s crucial for organizations to prioritize speed and operational effectiveness when implementing automation tools and other technologies, the environmental impact and energy consumption of these tools cannot be overlooked.
Ann Marie Chow, Vice President of Global Customer Operations and Sustainability at Apptio, emphasizes that sustainability metrics should be integrated into current operational workflows. “When budgets are tight, it’s easy to sideline sustainability, but incorporating it into your existing processes allows you to achieve multiple goals simultaneously,” she states.
Apptio’s strategy emphasizes quantifiable metrics, focusing particularly on power usage measured in compute hours. “We assess our environmental costs based on power consumption because it’s a quantifiable aspect,” Ann explains.
“Estimating carbon emissions can be imprecise, so we concentrate on power usage, which directly correlates with organizational actions,” she adds.
Apptio’s GreenOps features are already delivering impressive outcomes. Recently, the global payments giant, Mastercard, earned recognition as a finalist in the TBM Council Awards for its strides in technology sustainability while effectively managing costs.
Greg underscores that considerations of sustainability are playing a growing role in technology decisions: “Some CIOs are opting to forgo certain workloads that, despite offering business value, come with disproportionate sustainability costs,” he notes.
“We’re observing a broader perspective that looks beyond carbon emissions to include water resources and other sustainable assets that companies risk squandering.”
Highlighting the environmental angle can engage employees more effectively than merely emphasizing financial savings.
“At a large bank, engineers might not be particularly concerned about increased costs,” Greg points out. “However, presenting them with data that shows how their actions can positively impact the environment could shift their perspective.”
Compliance and Sustainability Actions
Environmental considerations are not just vital for cloud, automation, and AI expenses; they are also essential for compliance with regulations. In Europe, for example, the Corporate Sustainability Reporting Directive (CSRD) has propelled the adoption of integrated monitoring solutions.
“In EMEA, where legislation plays a strong role, CSRD has drawn increased attention,” Ann explains. “Recent legislation in Australia and various other regions has further accelerated this trend.”
The regulatory environment is continuously changing, with escalating consequences for those who fail to comply.
“Europe was one of the first regions to implement sustainability regulations. Now, regulators are imposing fines for non-compliance. It’s no longer just about transparency,” Ann adds.
“The repercussions of inaction in IT divisions will soon impact CFOs and Chief Risk Officers. Establishing partnerships early is key.”
New regulations, like the Digital Operational Resilience Act (DORA), introduce additional requirements. “I find myself discussing this daily,” Mallory shares.
“We can provide data that aids in making informed transfer pricing decisions, which can alleviate tax burdens. While we aren’t a tax accounting software, we offer valuable visibility for accountants to make decisions.”
Managing Data Sovereignty
The issue of data sovereignty is becoming increasingly important. “Costs associated with data storage, including warehouses and databases, can be tracked in the cloud,” Mallory clarifies.
“Organizations in highly regulated sectors, like financial services and healthcare, are retaining data but may be uncertain about its management and future use.”
Recently, Apptio opened a data center in the UAE within AWS to host Cloudability and cost planning for Apptio. “As more individuals globally transition to cloud solutions, they desire control, visibility, and exclusive access to their data,” Greg notes. “We’re also hosting solutions on Azure alongside AWS, which is significant.”
The company’s approach to data management highlights the evolving sophistication of the market.
“We combine various data sets and model them to provide a holistic view of a business,” Mallory explains. “It’s the same foundational data presented differently, enabling organizations to make informed decisions, optimize operations, discontinue unneeded services, and invest in lucrative opportunities.”
Looking Ahead: Market Shifts
As Apptio plans for the future, they focus on the growing intersection between financial operations and sustainability tracking.
“I’m thrilled to see how GreenOps can integrate with TBM and FinOps, potentially becoming a benchmark or framework,” Ann states. “Currently, no gold standard exists, but establishing one is an important future direction.”
Automation will also become increasingly significant. “Our clients have shown enthusiasm for this. I can’t count the number of times we’ve reviewed potential savings, like a possible $1 million reduction,” Mallory reveals.
“For any organization, targeting the top ten cost-saving opportunities is crucial since they comprise a large share of unnecessary expenditures.”
“However, many companies are also faced with a long list of smaller, seemingly less significant costs that collectively add up. Addressing these manually demands substantial hours. Apptio can identify these expenses and automate their elimination.”
Greg observes similar trends with AI adoption: “What we’ve found is that AI is following a pattern requiring a centralized team to oversee financial operations. The CTO’s role will become more pivotal in identifying suitable AI solutions for various applications,” he adds.
Clearly, as companies navigate more complex technological landscapes, Apptio’s integrated strategy for cost management, sustainability, and automation offers a comprehensive framework for informed decision-making.
With the integration of AI into Apptio’s tools, spending behaviors that might have gone unnoticed by humans are now detected.
“Thanks to AI and advanced language models, we can utilize our clients’ data in ways that were previously unforeseen. This is one of AI’s remarkable advantages—its ability to uncover patterns at unprecedented speeds, resulting in effective cost reductions for our customers across various sectors,” Mallory concludes.
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