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  1. Solomon Wisdom
  2. Sherlock Holmes
  3. Performance Management
  4. Wednesday, 10 April 2019

New Relic reduces Cloud costs from 40-90% for Infomedia a software vendor

Case Study Auto Parts Dealership New Relic Infomedia Background

Established in 1987, Infomedia serves 170,000 users representing 39 global automaker brands in 186 countries around the world with software for spare parts catalogs, parts and service sales, and lubricant point of sale solutions for oil companies. Infomedia provides about 200 discrete applications that help dealers service their customers while maximizing profitability. With dealers depending on the Infomedia’s software, performance and reliability become critical.

The Challenge

With innovation being Infomedia’s key competitive strategy, the company was one of the first software vendors to use Amazon Web Services (AWS) in 2012 in Australia. The key challenge was to preserve Infomedia’s level of service and performance as it transitioned to the cloud and Infomedia did this, in part, by liberal provisioning of infrastructure. But it found itself unable to track actual customer experience as well as the causes of any performance issues which it addressed by adding more infrastructure capacity in the form of cloud resources. It could not accurately distinguish between capacity constraints and suboptimal software resource consumption. As a result not only did costs face potential escalation but application performance was also at risk.

The Input

Infomedia chose New Relic, a pioneer in modern application performance management in the cloud, to help increase their operational visibility in the cloud. New Relic allowed them to better observe their application performance as well as consumption of cloud instances needed to provide the level of performance for the customer experience that they needed to maintain.

The Outputs

They used the New Relic APM to monitor application performance, New Relic Infrastructure to track the use of the underlying infrastructure to deliver that performance and the Health Map visualize the overall inter-relationship of application performance and infrastructure. They could be running 50 or more Amazon EC2 resources per application with 10 or more versions running at the same time and it was only with New Relic that they could accurately visualize and distinguish between application and infrastructure performance.

The Outcomes

This new ability to disaggregate application performance and infrastructure consumption allowed them to address the two issues separately to optimize application performance while also improving infrastructure utilization through the insights they obtained on each aspect. For example, one application alone was found to be using 49 large instances, indicating that the problem was more likely to be in deployment. This helped them reduce cloud spend by over 40%, and improved their decision making on provisioning for other applications. In another example, an application was found to be memory intensive rather than CPU intensive as was previously envisaged. In this case the savings were almost 90%. This also helped them to further improve customer experience.

In addition to resource optimization and application performance improvements, the insights provided by New Relic helped improve another key aspect of Digital Transformation – namely company culture. The causal transparency has helped to reduce “finger Pointing” and also improved the level of trust between executive and operational personnel.

Sources: New Relic

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