BMC cloud cost control presentation

Editor's Notes

• #2: As we talk with our customers and understand the challenges they have, we find that managing the cost of multi-cloud infrastructure -- and public cloud infrastructure services in particular is an area that they are having challenges. BMC has invested in developing a solution to address these challenges – and help organizations manage their cloud and on-premises infrastructure costs as well as optimize the use of the resources they are paying for.
• #4: According to IDC, 90 percent of organizations around the world will be using 2 or more cloud management platforms in the next 2 years. Most organizations we talk with have already using public cloud – typically one platform (AWS or Azure).
• #5: Adopting public cloud and making it part of the IT estate has it problems. In a recent survey (by IDG, large tech publisher), 40% of the folks surveyed said they had migrated applications to the public cloud only to move them back on-premises. Why? 52% of them said it was due to costs. They got sticker shock. Results from another survey showed that organizations believe they are wasting 30% of their spend on public cloud. The public cloud providers think it can be as high as 45%. (Rightscale 2017 survey)
• #6: Even though organizations are aggressively looking at public cloud, they are not abandoning their on-premises environment. At BMC, we believe that to optimize your use of public cloud, you need to understand and consider your use of on-premises infrastructure. Cloud first does not mean cloud only. Organizations will have an on-premises data center for many years to come. To make the best decisions for public cloud use, it must be done with the inclusion of on-premises environments – and organizations need to have solutions that provide them visibility and management of on-premises and public cloud.
• #7: This is a list of the major challenges that we hear about when talking with organizations about their cloud projects. One large technology manufacturer shared they were spending 200-300% more than they anticipated on public cloud. Another mcompany that is in the educational industry, expected a $3M monthly bill from Amazon and got a $32M bill. Different buying centers inside a company – basically buying unchecked. This leads to a lack of visibililty of what is being spent across the company – and even for a specific business unit. Public cloud spending can add up quickly. With independent buying centers, it is usually the CFO that is the first person to understand the total company spend. Not the situation you want. Oversized/Unused Resources – these are bad habits that have been formed with on-premises resources. Many organizations have not invested in capacity management – believing it is cheaper to buy additional assets. So having oversized VMs and storage, idle VMs, or utilization rates of 20% have been acceptable. These same habits become very expensive when moving workloads to the public cloud. You are paying for underutilized and unused resources out of your operating budget. We are working with a company in Europe – a utility company – to help them rightsize their public cloud infrastructure. They moved 1700 applications to over 20,000 VMs in AWS. They got a bill of about $36M. We have helped them reduce their bill by about 20% are continuing to work with them to decrease it either further. The goal is to reduce it by 30-40%. Organizations also lack the ability to forecast future costs for public cloud, making managing operational budgets difficult. And many organizations have a lack of governance over their use of public cloud – which leads to many of these problems.
• #8: Based on the challenges we see, we have developed a new product – TrueSight Cloud Cost Control – to address these challenges. In the first version of the product, we are providing: Cost visibility -- so you know what you are spending Cost Management – so you can plan for future spend Simulated Migration – so you know what resources you need and associated cost for moving workloads – before you move them. Resource optimization – which leads to reduced costs And reporting – to keep stakeholders informed. Let’s take a look at the product so you can see how you can accomplish this.
• #9: If you are doing a live demo, cover the following use cases: Visibility into current spend. And annual forecast Normalized hours – tracking compute hours against your on-premises/cloud goals Visibility into cloud services and cost. Visibility into business services infrastructure and cost/spend. Simulated migration On-premises to AWS or Azure AWS to Azure or reverse Server views Most expensive Idle/usused VMs Any custom report based on tagging Explore Custom reports for stakeholders for managing budget and spend Custom reports for IT teams for managing costs and resources
• #10: Balance capital and operational expenses with insight into: Monthly spend by provider Annual forecast Compute hours by provider
• #11: There are hundreds of infrastructure services for multi-cloud. AWS has about 90 different services, choices within each of those 90 services. Azure has at least 90 and then you have your on-premises services. How do you keep track of all of these services – which ones, and how much you are spending on them. We have grouped cloud services into meaningful categories – compute, storage, etc. So you can immediately see what your spend is various infrastructure. You can also drill down into any of the individual services so you can see the details about the individual services and cost, including forecasted costs. This information is show by provider, including on-premises as a provider.
• #12: You have a view of all of your business services and/or applications– and the costs and resources associated with them. (A business service can be one or more applications that delivers a service). Business services can be defined a variety of ways: Using a CMDB if you have one in place Through tagging Entered manually For each business service, you can select and see details that include: what infrastructure is being run – and where What the cost of the resources is – an individual and summary level Forecasted cost of resources –monthly and yearly Utilization of resources You can use this view for a few different purposes: Tracking resources – their usage and cost Simulate migrations to see if it is cheaper to run services on AWS or Azure Provide business owners with insights and IT costs.