RealCloud case study

At a glance

Industry: Managed service provider (MSP)

Location: Brazil

Products: Ocean, Flexera’s container optimization solution
 

Featured results

  • An unbeatable value proposition for RealCloud customers
  • Cost savings of over $15M annually on AWS bills for customers collectively
  • 100% year-over-year revenue growth for RealCloud

The challenge

Low visibility across a growing customer base

Silvio Pereira and Gilberto Ferreira founded RealCloud in 2017 by leveraging their collective experience and strong reputation in the Brazilian tech industry. As AWS and other IaaS providers began to penetrate the Brazilian market, they recognized the opportunity to assist IT teams and DevOps practitioners with the unique challenges of cost optimization, security and application performance in the cloud.

RealCloud began by helping companies run their applications and other processes on AWS to create a strong CloudOps practice. To establish better governance and results, they also incorporated other solutions for visibility into spend, security, digital experience monitoring (DEM) and application performance management (APM). During an early sales meeting with South American e-commerce giant B2W, Silvio was told the B2W team was evaluating Flexera for cost optimization and that RealCloud should also consider working with them as a partner.

Flexera enables the reliable usage of cloud providers’ excess compute capacity, commonly known as spot instances in AWS and Azure and as Preemptible VMs in Google Cloud. In AWS, spot instances are identical in all ways to on-demand instances, except that they can be up to 90% less expensive and AWS can interrupt them with just a two-minute warning. While financially attractive, spot instances are challenging to use in mission- critical and production applications.

The solution

Measurable cloud cost optimization

With Flexera providing a high-availability SLA for workloads running on spot instances, RealCloud now has an unbeatable value proposition. Both existing customers and new prospects were offered a reduction in their computing spend by up to 90% with zero risk to availability and only charging them a fee based on actual, achieved savings. Within a few short years, RealCloud successfully built a cloud cost management practice with many delighted customers and millions in revenue.

“The use of Flexera is great for the customers, but also for any MSPs that manage those customers’ environments, as they can offer FinOps services and cost reduction for their customers without any changes in their DevOps tools and culture.”

Silvio Pereira, Co-founder and CEO RealCloud

The result

A unique MSP value proposition

Ocean is a strategic solution for MSPs. Customers can reduce costs by up to 90% with an SLA for high availability. It allows customers to manage their environments with dramatic cost reduction, application performance management and security— delivering an end-to-end portfolio of CloudOps solutions.

Improved visibility for greater savings

By leveraging Flexera solutions, RealCloud’s current customers have been collectively saving more than $15 million annually on AWS bills. For customers using Reserved Instances and Savings Plans, Flexera One Cloud Commitment Management (formerly Spot Eco), has enabled RealCloud to offer automation of the entire reserved capacity lifecycle for greater savings with minimal commitment.

Simplified negotiations with new prospects

Flexera’s attractive pricing and bundling options make negotiations simple. Thanks to the savings recommendations and breakdown delivered during POCs, customers can have an ROI estimate before joining. Once joining, renewals are at almost 100%.

Massive revenue growth year over year

Since 2018, RealCloud has grown revenue year-over-year by 100% with Spot Ocean automating workloads on spot instances with an SLA for high availability.

How a few RealCloud customers win

Brazil’s top game developer, Wildlife Studios, runs more than 50% of their gaming environments with Ocean.

Vtex is an e-commerce platform unicorn with more than 2,500 customers worldwide. RealCloud quickly implemented Ocean and the company now has more than 1,000 instances under management.

Next steps

Reduce cloud costs and boost efficiency

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