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Cost Optimization

Cost Optimization
How do you calculate the real cost of customizations?

Top Answer: I normally multiply the initial cost of that customization by 20, and I work that out over time. I've seen how that cost increases so many times in different large companies. If a customization costs $50K, by the time you've redone that customization for each upgrade, taking all the extra testing into account over a lifespan of 10 years, it will probably end up costing you 20 times that initial spend. The business says that a $50K customization is justifiable, but is it worth $1M? That's the calculation you need to make and educate people on, because it’s the real cost you’ll be dealing with over time.

What are the top challenges with backups? (Select all that apply)

Top Answer: Drastic data growth that translates to significant backup size growth. Effectively upgrading your backup servers, proxies and repositories to keep up with all the data growth. If you use SaaS backup, then keeping up with the bandwidth increase. Being able to recover the data in a timely manner. Design of a proper air-gapped backup solution that will be effective, having immutable repositories.

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How should companies manage the cost of goods sold (COGS) as tariffs change?

Top Answer: As the cost to sell a product increases with tariffs, or becomes eligible for reduction programs like foreign-trade zone (FTZ), duty drawback or free trade agreements (FTAs), companies need to integrate the changing data of the tariff and supplier options into their overall process. This can be achieved by using web crawling, external data and data mining to understand the implications of using a particular product/source combination, and to react when changes to a tariff or regulation affects the total cost of goods sold (COGS). The implications of total costs should be incorporated into the entire process of product creation, from design to sourcing to production to sale. 

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How do you improve cybersecurity without driving up costs?

Top Answer: When you do root cause analysis on cybersecurity incidents, it comes down to a few basic things. Either the company didn't have good controls in place to begin with, or they thought they had controls in place, but those controls weren't across their entire estate. So there’s incomplete control: 80% was covered, but 20% wasn't. Even if only 1% wasn't covered, bad actors only need one device. Once they're on it, they can do whatever they want. Another factor is defense. Some organizations have one control and they think that's all they need. But you have to layer these controls so that it becomes much more difficult for the bad actors to navigate through and get to the underlying access they want. When I do root cause analysis on these incidents, I often find that even though the organization had two-factor authentication (2FA), they also had one test VPN account that they forgot about, and that is how the attackers got in. It's always something like that. You don't need to spend millions and millions of dollars to get a good cybersecurity posture. If you have the budget, go for it. But people are going to get you with some basic things. If you don't do the basic things well, all the money you're spending on advanced anomaly detection doesn't matter. Because if you leave the door open, or if you leave the key right outside the door, people are just going to walk in.