How Cloudidr’s Fractional FinOps Service Helped a Large Healthcare Provider Reduce Cloud Costs by 40% ($48M Saved)

Client Overview

A large U.S.-based healthcare provider with over 25,000 employees and 10 million patients relied on the cloud to power its hospitals, clinics, and telemedicine platforms. Their cloud infrastructure supported:

• Multi-petabyte-scale data storage for electronic health records (EHRs).

• Real-time patient monitoring and AI-driven diagnostics.

• High-availability systems across AWS, Azure, and Google Cloud.

Despite having a cloud-first strategy, the provider’s monthly cloud costs exceeded $10 million due to inefficient resource utilization and a lack of centralized cost governance. Cloudidr’s Fractional FinOps service was engaged to optimize cloud expenses while maintaining compliance with HIPAA, SOC 2, and GDPR standards.

Challenges

A detailed FinOps assessment uncovered several cost inefficiencies across compute, storage, and governance.

1. Compute Overprovisioning

• 50% of VMs were oversized, with utilization often below 30%.

• Inefficient use of Reserved Instances led to $2 million in unnecessary annual spending on on-demand instances.

2. Storage Inefficiencies

• Over 10 petabytes (PB) of data were stored in the cloud, but 35% was rarely accessed and remained in expensive storage tiers.

• Redundant patient imaging files and unnecessary backups resulted in $1.2 million in excess storage costs per year.

3. Lack of Cloud Cost Governance

• Different departments provisioned cloud resources independently, leading to hundreds of untracked VMs and storage volumes.

• Cloud costs were increasing by 15% quarter-over-quarter, making financial planning difficult.

Cloudidr’s FinOps Solution

Cloudidr deployed a multi-phase Fractional FinOps strategy to optimize cloud costs without compromising performance, security, or compliance.

1. Compute Rightsizing & Flex Compute Adoption

• Rightsized underutilized instances, reducing compute expenses by 25%.

• Implemented auto-scaling policies, lowering waste from idle workloads.

• Shifted non-critical workloads to Flex Compute, cutting on-demand spending by $3 million annually.

2. Storage Optimization

• Migrated 3.5PB of rarely accessed data to lower-cost archival storage, saving $400,000 per month.

• Eliminated redundant backups through deduplication strategies, reducing storage waste by $1.2 million annually.

3. FinOps Governance & Cost Visibility

• Introduced real-time cost monitoring dashboards with automated alerts.

• Established policy-based budgeting controls, preventing shadow IT from creating untracked costs.

• Improved forecasting accuracy, preventing $5 million in future cost overruns.

Results

Within six months, Cloudidr’s Fractional FinOps service delivered significant cost savings and long-term financial benefits:

• 40% total cloud cost reduction, cutting expenses from $10 million to $6 million per month.

• Annual savings of $48 million, freeing funds for patient care innovations.

• Enhanced financial planning, enabling more predictable cloud cost management.

• Sustainable cloud efficiency, ensuring future growth, remains cost-effective.

Conclusion

By leveraging Cloudidr’s Fractional FinOps expertise, this large healthcare provider transformed its cloud cost management strategy. The organization achieved sustainable cost savings through compute rightsizing, storage optimization, and governance improvements while maintaining high availability, security, and compliance.

This case study demonstrates that even complex multi-cloud environments can be optimized for financial efficiency, proving that healthcare organizations can scale cloud operations without sacrificing cost control.