Common Securitization Solutions (CSS) supports a majority of US mortgage securities in the highly regulated secondary mortgage market industry. The securitization platform that CSS runs was already on Amazon Web Services (AWS) when the company decided to insource all its business functions, including procurement, to minimize risk and optimize costs. In AWS Marketplace, CSS found those benefits and more—even reducing the complexity of procuring third-party solutions
Opportunity | Bridging the Vendor Management Gap
Common Securitization Solutions (CSS) operates a mortgage securitization platform that supports the Uniform Mortgage-Backed Security (UMBS) of Fannie Mae and Freddie Mac, which bridges the gap between the secondary mortgage markets and investors. CSS receives mortgage data from customers and converts mortgage loans into securities.
When CSS previously outsourced its procurement function, maintaining consistent governance across all third-party vendors was challenging. CSS made a strategic decision to bring the procurement process in-house and manage it end-to-end to reduce risk and gain greater control over its software-as-a-service (SaaS) providers and purchases.
Even after CSS brought procurement in-house, it still had to manage different contracts across multiple vendors, such as Splunk, Akamai, and Appian. Leadership saw an opportunity to increase governance, improve efficiency, and decrease costs—not to mention get continuous support with complex processes—by investing further in its trusted relationship with AWS and procuring SaaS solutions in AWS Marketplace.
As a procurement leader, I look for opportunities for efficiency and cost savings. AWS Marketplace helped streamline our processes by having a single point of contact instead of working with so many different suppliers.”
Sr. Director, Procurement and Supplier Management Risk, CSS
Solution | Less Risk, More Reward
Generally, the more suppliers an organization has, the more data security risks it potentially takes on. Procuring SaaS solutions in AWS Marketplace, however, helps CSS reduce that risk while increasing access to thousands of readymade solutions from different independent software vendors (ISVs)—leading to faster deployment and decreased time to market. Transacting in AWS Marketplace also means CSS doesn't have to conduct a lengthy vendor risk assessment process because sellers who want to list in AWS Marketplace have already gone through some level of vetting.
With AWS Marketplace, CSS continues and evolves existing relationships with SaaS ISVs, including Red Hat, Blue Prism, Dynatrace, Check Point, and Snowflake. It can also explore relationships with new vendors. “We didn’t see a risk transitioning to AWS Marketplace because the terms with vendors do not change and we continue to have the same relationships with our vendors,” says Manoj Shetty, vice president, head of infrastructure & cloud services at CSS. “This made moving to AWS Marketplace an easy decision for us.”
CSS also did not have complete visibility across all its vendors—which could be a liability for compliance and reporting to the federal government. CSS needed a single pane of glass through which to view all the details related to procurement, such as tracking spend and acting on upcoming SaaS renewals, and it found that in AWS Marketplace.
Centralizing IT procurement in AWS Marketplace improves efficiency because it simplifies vendor onboarding and management. For example, with Splunk, which provides SaaS solutions for near real-time operational intelligence, CSS anticipated that it could traditionally take three to four weeks to establish the ISV in its backend system as a supplier and set up a purchase order (PO) to start paying for the service. But once negotiating the pricing and terms with Splunk was complete, receiving the private offer in AWS Marketplace and accepting it took no more than 2 days.
AWS Marketplace Purchase Order Management for SaaS Contracts helps CSS enter PO numbers as part of the AWS Marketplace transaction flow when purchasing SaaS contracts. This makes it easier to match POs, subscriptions, and invoices. This level of self-service in AWS Marketplace offers flexibility and less worry by empowering CSS teams to discover, procure, and manage software in AWS Marketplace, without going through a lengthy approval process. As a result, CSS added five new deals in AWS Marketplace in 2022, and it plans to add 16–17 more new SaaS solutions in 2023.
Outcome | Investing in Future Innovation
AWS was already one of the biggest sources of technical spending for CSS, but purchasing in AWS Marketplace provides a significant cost advantage. Spending in AWS Marketplace counts toward its AWS commitment, helping CSS to always make the most of its investments.
“In AWS Marketplace, it is easy to track spend,” says Leila Orandi, senior director of procurement and supplier management risk at CSS. “At any time, I can go to AWS Marketplace and obtain details such as timelines, start and end dates, renewal dates, cost, etc.”
With improved governance, efficiency, and cost controls combined, working with AWS Marketplace is helping CSS do more with less time and resources spent.
About Common Securitization Solutions (CSS)
Common Securitization Solutions (CSS), a joint venture owned by Fannie Mae and Freddie Mac, supports the US housing market and global financial markets through its mortgage securitization platform. Since its launch in mid-2019, it has supported over 30 million loans and administered the issuance of $400 billion in mortgage securities each month. The platform supports the issuance of 70 percent of all US mortgage securities.
AWS Services Used
AWS Marketplace is a curated digital catalog enabling customers to quickly find, test, buy, deploy, and manage the third-party software, data, and professional services necessary to build solutions and run their business. Procurement teams leverage AWS Marketplace to accelerate innovation and enable cloud users to deploy solutions rapidly and securely, while reducing total cost of ownership and improving operational oversight.
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