how citrix aligns it to business goals
TRANSCRIPT
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ALIGN IT RESOURCES TO BUSINESS DEMANDThe business value: cost visibility
Split by Cost
Center
Cost of each
‘Product’ over time
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Renato Bonomini, Manager @ MoviriTroy Hall, Senior Systems Business Analyst @ Citrix OnlineOctober 14th, 2014
Effective Accounting and Chargeback with TrueSight Capacity Optimization
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Agenda
1. Your speakersRenato Bonomini @ Moviri, and Troy Hall @ Citrix Online
2. The BusinessThe central role of IT in Citrix Online
3. Why Accounting and Chargeback?Making users pay for resources they consume fairly and accurately
4. How we leveraged TrueSight Capacity OptimizationLesson learned and best practices
5. Future stepsWhere do we go from here
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Your SpeakersRenato Bonomini and Troy Hall
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Renato Bonomini
• Background in DSP and HPC, manager of the US subsidiary of Moviri
• Expert in the architecture and design of Capacity Optimization and related processes
• Systems engineering experience in companies ranging from startups to larger brick-and-mortars
• Senior business systems analyst and developer for Citrix Online products
Troy Hall
@renatobonomini
renato.bonomini troy.hall
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The BusinessThe central role of IT in Citrix Online
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A division of Citrix Systems, Inc. (Nasdaq: CTXS)Citrix Online offers the leading Web-based remote access and collaboration services in the SaaS model, as well as high-definition audio conferencing
• GoToMeeting
• GoToMyPC
• GoToAssist
• GoToTraining
• GoToWebinar
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How Business relies on IT
Fundamental company culture: “meeting customer needs”
Every product is designed to deliver exceptional reliability,
speed, security and ease of use
.. while being affordable to businesses of all sizes
“Citrix Online is considered a key example of the software as a services (SaaS) / application
service provider (ASP) software business model” [Wikipedia]
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Why Accounting and Chargeback?Making users pay for resources they consume
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TrueSight Capacity Optimization at Citrix Online
2011
Infrastructure Capacity
Managementfor CloudStack
How to simulate P2V, V2V
migrations?
How to optimize our services?
2012
Capacity Management
process is mature
Service capacity improved by a
factor of 2(= cost saving 50%)
How to tie Business to IT?
2011
Business Aligned Capacity
Management
Business Aligned Capacity, data
from Splunk and SalesForce
How much is our infrastructure
used?
2009
Infrastructure Capacity
Management
Visibility of infrastructure
capacity
2013
How do we identify which services are
costing more?
Support IT Financial
Management
Cost perService identifies
“offenders”
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The model was updated once a year with % based on a single point in time of one KPI
Lack of trust from product owners asking “Which services are costing more than others?”
Lack of accuracy and visibility
Changes are rapid, manual maintenance of lists takes too much time and is error-prone
A small inaccuracy (even with a small impact) loses a lot confidence in the process
After Improving 2X the capacity of audio and video services to manage end-users, new challenges come from IT Financial Management
With so many products and resources, where should Capacity Planners spend their time?
Should each product deserve the same amount of effort?
How do we make cost show-back fair and accurate?
How do we deal with a constantly changing environment?
Who’s consuming resources?How do we focus on priorities?
Why Accounting and Chargeback?
ManualInfrequent
NoVisibility
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What were the challenges?
Technical Challenges
• 8 cost centers: (compute, network, storage, data transfer, etc.)
• Hierarchy: Configuration Management
• ACB model: Allocated vs. Metered
• Model updated once a year
• Shared resources
• Virtualization
Social Challenges
• Ownership of data
• Ownership of process
• True comparison
• Acceptance
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• Accuracy
• Frequency
• Priority based on cost
• Move capacity where needed
The effort required for monthly showback reporting is minimal, saving precious time and providing detail for even greater IT resources savings
• Automatic data collection
• Automatic hierarchy definition and update
• Automatic generation of reports
• Time and effort saved
Increased satisfaction of business units, more educated IT decisions
Resources are freed up and reallocated to more critical business objectives
Ability to quickly reconfigure models and automatically generate auditable results
Outcomes
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How we leveraged Capacity OptimizationLesson learned and best practices
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In your organization:
Is allocation andshowback of costs and
resources fair?
Or in other words
Are our smaller services using most of your
resources?
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Why TrueSight Capacity Optimization & Moviri
Why TrueSight Capacity Optimizationfor Accounting and Chargeback
• Configuration, utilization and operational data is available
• .. and if not: easily imported
• Analytics and reporting functionalities are automated
• Dedicated view to create, update, run ACB models
Why
• 10+ years of experience in Capacity Management
• 200+ enterprise customers worldwide, managed the majority of Capacity Optimization implementations
• BMC MarketZone integrations between TrueSight Capacity Optimization and
– Splunk, IBM, Microsoft, HP, Entuity
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3 components of Accounting and Chargeback
Identify the actual costs to give transparency and to
allow control over spending (“metering”)
CostIdentification
Distribute the costs to the business units to control
where money goes(“showback”)
CostAllocation
CostRecovery
Each BU pays back according to identified usage (“chargeback”)
• Visibility of costs• Foundation for accounting
• Finance and IT costs don’t match• Who pays for what is unclear
• Visibility over where the money is spent in terms of BU
• Disagreements over method• Complex task
• Strong influence on behavior• Cost control becomes a discipline
• Trust is required and difficult to achieve, quick to lose
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Choose your method for IT Service Cost Allocation
KPI DescriptionHigh/Low
Level Allocation
Direct Cost allocation
MeasuredResource
Utilization
Tiered or negogiated
rate
Service Based pricing
SimplicityA billing method that is easy to manage and invoices that
are easy to understand+++ ++ + ++ +
FairnessBUs want to pay only for their
own usage and avoid cross-subsidization
+ ++ +++ ++ +++
PredictabilityBUs seek little or no variation between their budgets for IT
services and actual++ + ++ +
ControllabilityA cost structure that will
enable BUs to actively manage their IT costs
+++ + ++ ++
ComplexityEffort to define, run and
update the model + ++ ++ +++ +++
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Workflow & Tips
Target Hierarchy
Cost Objects
Cost Rates
Allocation
Charge-Show-back
Leverage automatic
relationships import
start from data
you are already
collecting
Use templates
Hourly resolution
for metered
accounting
Start with simple models
(allocation)
Iterate the cost model a
few times
Thanks to @michelefollo, @trivasco, @GalloAndreas for their bubbleheads
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Lesson learned: not a linear but iterative V-process
Start from a simple model
organized with your complete
showback hierarchy
Use cost items that already exist in CO
to minimize complexity
Compute cost rates, input them in the
model, run & evaluate results
Check with stakeholders
Evaluate the current model for
the 4 KPIs: Simplicity, Fairness,
Predictability, Controllability
Expand to additional cost items
if necessary
Review cost rates, differentiate according
to type of hardware if necessary
Evaluate difference between expected
results and current scenario
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Future StepsWhere do we go from here
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• Extension of scope to additional cost items such as Network traffic
• Allow product owners to center their decisions around cost of the infrastructure on a consistent base
• Support simulation at cost level: “where is the cheapest DC for installing application X?”
Refine cost models with additional cost items Extend adoption Perform what-if on cost
Next steps for Accounting and Chargeback
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No “one size fits all”
model: experiment in
V-cycles to find the
one that your
organization trusts
the most
Benefits go beyond
“who receive the bills”:
an effective way to
prioritize effort-
intenstive cost-saving
activities in Capacity
Management
Simplicity and
fairness are two of
the most important
factors
3 Key Take Aways
01 02 03“Demo or die”
“Money talks”
“KISS”
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Thank You.
@renatobonomini
Moviri booth at Engage Solution ShowcaseAtlantic Hall B
512