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RyanMoravick
Level 4
December 9, 2024
Solved

Translating License Optimization to Cost Savings

  • December 9, 2024
  • 2 replies
  • 945 views

Hey community!

 

I was wondering if anyone has any frameworks for translating license optimizations to cost savings? For example, we implemented pseudonymous profile data expiration to our CDP instance with a contracted limit of 20m and reduced our license usage from nearly 90% to 55%. Is there a way to translate the % reduced to $ saved?

Best answer by DavidRoss91

Hi @ryanmoravick 

While I'm not 100% sure, I will take a stab at this:

Essentially, the way I am thinking, if you know your cost for profile license, you could find the cost per profile. For example:

 

If 20m cost $200,000, you can take 200,000 / 20,000,000 = @$0.01 per profile

90% of usage would be ~18m profiles. You reduced to 55%, which would be ~11m

18m - 11m = 7m

7m x 0.01 = savings of ~$70,000

 

Again, this is just me estimating how this would work. It would be most accurate to reach out to your Adobe rep for clarification.

2 replies

kautuk_sahni
Community Manager
Community Manager
December 12, 2024

@brekrut @ccg1706 @arpan-garg @narendragandhi @renatoz28 @vishnuun Kindly take a moment to review this question and share your valuable insights. Your expertise would be greatly appreciated!

Kautuk Sahni
DavidRoss91
Community Advisor
DavidRoss91Community AdvisorAccepted solution
Community Advisor
December 19, 2024

Hi @ryanmoravick 

While I'm not 100% sure, I will take a stab at this:

Essentially, the way I am thinking, if you know your cost for profile license, you could find the cost per profile. For example:

 

If 20m cost $200,000, you can take 200,000 / 20,000,000 = @$0.01 per profile

90% of usage would be ~18m profiles. You reduced to 55%, which would be ~11m

18m - 11m = 7m

7m x 0.01 = savings of ~$70,000

 

Again, this is just me estimating how this would work. It would be most accurate to reach out to your Adobe rep for clarification.

RyanMoravick
Level 4
December 19, 2024

Thanks @davidross91 I think this is a great start. Ill see If my client has a dedicated support rep who can clarify the cost per profile.