Executive Summary: Aviatrix, recently released the results of an analysis demonstrating cost savings for a leading global retail customer. The analysis revealed $25 million in direct savings in data processing costs compared to native cloud constructs. The significant estimated savings were identified in the areas of full-time employee hiring avoidance and reduced risk of cloud network cyber incidents. Read more on the company’s blog here.

Evolution of Networking and Application Connectivity

Historically, organizations relied on complex, device-heavy data centers that offered granular control but required extensive management. With the advent of software-defined networking (SDN) in the mid-2010s, networking began to streamline using standard hardware, though it faced challenges due to entrenched vendor loyalties. The shift to cloud service providers (CSPs) post-2015 brought scalability and resilience, but also led to fragmented networking solutions across multiple vendors. This created core challenges, including the complexity of managing diverse cloud and data center providers (the C * S Problem), lack of granularity and control due to third-party cloud providers, and inefficient cloud cost structures. Aviatrix addresses these challenges by offering a unified “network of one” simplicity, providing a robust routing data plane with the CoPilot interface for visibility and control, and streamlining costs to enhance scalability and business agility.

Historical Context:

• Pre-Mid-2010s: Organizations relied on complex, device-heavy data centers, offering granular control but demanding extensive management.
• Mid-2010s Onward: The advent of SDN aimed to streamline networking using standard hardware, though it faced challenges due to established vendor loyalties and traditional IT model departures.
• Post-2015 Shift to CSPs: CSPs introduced scalability and resilience, pushing enterprises to adopt cloud-specific applications. However, this migration led to fragmented networking solutions across multiple vendors.

Core Networking Application Connectivity Challenges:

1. The C * S Problem:
   • The complexity of managing numerous cloud and data center providers (C) and the diverse networking services within each cloud (S) increases, leading to fragmented and cumbersome environments.
   • Aviatrix Solution: Offers a unified “network of one” simplicity, utilizing full-range networking services without additional vendor dependence or the need for specialized full-time employees.
2. Lack of Granularity & Control:
   • Third-party cloud providers simplify networking for users but introduce opaqueness in data flows and APIs, complicating management and troubleshooting.
   • Aviatrix Solution: Provides a robust routing data plane and the CoPilot interface, granting enterprises fine-grained visibility and control across clouds.
3. Inefficient Cloud Cost Structures:
   • Cloud network data processing and egress fees are significant and inflexible, hindering scalability and data portability.
   • Aviatrix Solution: Streamlines both hard and soft costs, enhancing scalability and business agility by reducing reliance on native constructs.

Leading Retailer Savings Analysis

Key findings from Aviatrix’s analysis showcase significant financial benefits and risk reductions for enterprises. By addressing the complexity of managing multiple cloud providers and networking services (the C * S Problem), Aviatrix saved $400,000 annually in avoided full-time employee costs and mitigated additional expenses related to hiring skilled cloud professionals. Enhanced visibility and control through Aviatrix solutions translated into an estimated $210 million or more in potential savings from mitigated cloud network cyber incidents, leveraging insights from the Cybersecurity and Infrastructure Security Agency (CISA). Aviatrix also streamlined cloud cost structures, yielding $25 million annually in savings on network data processing compared to native cloud alternatives, and avoided an additional $5 million in costs by reducing the need for 4,500 NAT gateways. These savings enable enterprises to reallocate resources toward advanced services such as AI and large language models (LLMs), enhancing strategic capabilities and agility.

Key Findings

• Solving the C * S Problem:
  • Aviatrix enabled $400,000 in annual savings from avoiding the hiring of full-time employees needed to manage the growing cloud footprint. Additional unspecified costs related to finding and retaining skilled cloud professionals were also mitigated.
• Granularity and Control:
  • Enhanced visibility and control translated to an estimated $210 million+ potential risk avoidance of cloud network cyber incidents, based on data from the CISA.
• Inefficient Cloud Cost Structures:
  • Aviatrix’s approach resulted in $25 million annual savings ($30 million savings minus $5 million in Aviatrix costs) in network data processing compared to cloud-specific constructs.
  • An additional estimated $5 million in cost avoidance was achieved by reducing the need for 4,500 added NAT gateways.
  • These savings can now be reallocated to higher-order services such as AI and LLMs.

Conclusion

Aviatrix’s cloud networking and application connectivity solutions effectively tackle the complexities enterprises face in the cloud era. By streamlining network management across various cloud and data center environments, Aviatrix achieves substantial cost savings, improves operational control, and enhances scalability.

These benefits enable organizations to optimize their cloud investments, reduce overhead costs, and strategically leverage cloud infrastructure for business growth and innovation. Aviatrix’s approach helps enterprises navigate challenges in networking efficiency and cost-effectiveness, empowering them to meet evolving technological demands with agility and competitive advantage.

Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.

Other insights from The Futurum Group:

Aviatrix’s Distributed Cloud Firewall for Kubernetes – The Futurum Group

Traefik Labs Updates Cloud-Native API Networking and Security – The Futurum Group

Author Information

Paul Nashawaty

With over 25 years of experience, Paul has a proven track record in implementing effective go-to-market strategies, including the identification of new market channels, the growth and cultivation of partner ecosystems, and the successful execution of strategic plans resulting in positive business outcomes for his clients.