Managing Cost in Public Cloud Environments
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This document discusses managing costs in public cloud environments. It begins by explaining that moving to public clouds is about on-demand provisioning and easy scaling to save resources and money. However, there is a paradigm shift, as the risk moves from unplanned capacity needs to unplanned operational costs. To manage this new risk, companies must monitor resource usage and understand how application usage drives costs. This allows identification of costly transactions, features, user behavior, and tenants to better optimize spending.
Managing Cost in Public Cloud Environments
- 1. Managing Cost in Public Cloud Environments May 24, 2012
- 2. The Cloud Reason Why do we want to use Public Clouds? 2
- 3. The Enterprise Data Center Enterprise Data Center Application Application Monitoring Our Responsibility Data Full Control Runtime Operating System Virtualization Infrastructure Machines Monitoring Storage Network 3
- 4. Application Monitoring in Public Clouds Primary resource for operational excellence Enterprise Infrastructure Platform as a Data Center as a Service Service Full Control Application Application Application Application Our Responsibility Monitoring Full Control Data Data Data Service Level Runtime Runtime Runtime Vendor’s Responsibility Operating System Operating SystemImpactOperating System Vendor’s Responsibility Virtualization Virtualization Virtualization Infrastructure Machines Machines Machines Monitoring Storage Storage Storage SLA monitoring Network Network Network Limited Control + Visibility 4
- 5. Cost and Planning Characteristics Time Next investment: estimate and buy… …and postpone investments Capacity planning: estimate future load Load and Resources and buy infrastructure Available Resources Load Resource Usage Performance optimization: use existing infrastructure as long as possible… time Rare and large investments Bad from a $ Paid in financial advance perspective time 5
- 6. Optimize Financial Risk Renting Outsourcing Sale & Lease Back Rare and large investments Bad from a $ Paid in financial advance perspective time 6
- 7. Optimize Financial Risk $ time Renting Outsourcing Sale & Lease Back Financial $ optimization achieved time 7
- 8. Optimize Financial Risk $ time Obviously, moving to a Public Cloud Renting Outsourcing is not only about financial optimization. Sale & Lease Back Financial $ optimization achieved time 8
- 9. Cost and Planning Characteristics Time Next investment: estimate and buy… …and postpone investments Capacity planning: estimate future load Load and Resources and buy infrastructure Available Resources Load Resource Usage Performance optimization: use existing infrastructure as long as possible… time Rare and large investments Bad from a $ Paid in financial advance perspective time 9
- 10. Cost and Planning Characteristics Resource Enterprise Data Center Unplanned and unhandled load Purchased Database capacity CPU Storage 10
- 11. The Enterprise Data Center Risk Resource Enterprise Data Center Unplanned and unhandled load Slow Application Purchased Database capacity CPU Storage Unsatisfied Users Loss of Revenue 11
- 12. The Cloud Reason Enterprise Data Center Cloud Unplanned and On-Demand unhandled load Provisioning Saving Resources Slow Application Purchased and $$ CPU Database Database capacity CPU Storage Storage Unsatisfied Users Loss of Revenue No Capacity Barrier 12
- 13. The Cloud Reason Enterprise Data Center Cloud Unplanned and unhandled load Easy Scaling Slow Application Moving to a Public Cloud Purchased CPU is about on-demand provisioning. Database Database capacity CPU Storage Storage Unsatisfied Users Loss of Revenue No Capacity Barrier 13
- 14. The Cloud Paradigm Shift The risk of dynamic scaling and the new cost structure 14
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- 16. Data Center vs. Cloud: Side by Side Enterprise Data Center Cloud Under-utilized Saved resources resources Purchased Planned CPU Database Database capacity Cost capacity CPU Storage Storage estimation 16
- 17. Nothing is For Free: The Risk Shift Enterprise Data Center Cloud Unplanned and Unplanned and paid unhandled load operational cost Under-utilized Saved resources resources Slow Application CPU Database Database CPU Storage Storage Unsatisfied Users Loss of Revenue Unplanned Cost Loss of $$ 17
- 18. Paradigm Shift in IT Operations Enterprise Data Center Cloud Optimal resource Unplanned and Minimal cost Unplanned and paid usage vs. SLA unhandled load operational cost vs. SLA Slow Application CPU Database Database CPU Storage Storage Unsatisfied Users Loss of Revenue Unplanned Cost Application performs Application performs within purchased within planned cost Loss of $$ resources 18
- 19. The New Cost Structure Enterprise Data Center Cloud CPU Database Database CPU Storage Storage Real transaction-based Fixed cost cost 19
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- 21. Cloud Resources Where does the cost come from? Resource Usage how our application consumes these resources 21
- 22. Cloud Resources Developer decisions User behavior Resource Usage Implementation how our application consumes these resources 22
- 23. Manage by planning? Enterprise Data Center Cloud Developer decisions User behavior Implementation Purchased Planned capacity Cost capacity estimation 23
- 24. Manage by monitoring! Enterprise Data Center Cloud Developer decisions Implementation User behavior Purchased Planned CPU Database capacity Cost capacity Storage estimation APM Transaction-based 24 UEM Application-centric
- 25. Manage the Cloud Risk …with transaction-based APM! 25
- 26. Cloud Resources Resource Usage how our application consumes these resources 26
- 27. Managing Cost Cost functions of our resources $ Cloud Resources $ $ $ $ Amount of Resource Amount of Resource Amount of Resource Amount of Resource Amount of Resource Compute Resource Usage Database Storage Billing … how our application Search .2% consumes these resources 18 How these resources are used Purchase .4% 3 1 by our application Identify costly Identify costly transactions features 27
- 28. Managing Cost Cost functions of our resources $ $ $ $ $ Amount of Resource Amount of Resource Amount of Resource Amount of Resource Amount of Resource Compute Database Storage Billing … Search .2% 18 How these resources are used Purchase .4% 3 1 by our application Identify costly Identify costly Identify costly Identify costly transactions features user behavior tenants 28
- 29. Managing Cost $ $ $ End-user visibility Amount of Resource Amount of Resource Amount of Re Operational Blindness Compute Database Storag Search .2% 18 Purchase .4% 3 29
- 30. Managing Cost $ $ $ End-user visibility Understand how our Amount of Resource Amount of Resource Amount of Re application drives cost Compute Database Storag Search .2% 18 Purchase .4% 3 30
- 31. Understanding Our Users is Key UEM How our users interact with your application How our application APM handles the load Operational Excellence 31
- 32. Contact Daniel Kaar, Technology Strategist daniel.kaar@compuware.com Webcast: Cloud Performance – Best Practice Click here! 32
- 33. 33 © 2011 Compuware Corporation — All Rights Reserved