the business case for cloud management - rightscale compute 2013
DESCRIPTION
Speakers: Nick Kephart - Product Marketing Manager, RightScale Baliey Caldwell - VP Business Development, RightScale We’ll discuss the cloud technology landscape and how RightScale fits in to manage Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). This session will clarify cloud benefits, cloud challenges, and how cloud management can drive agility, cost, and time savings. You’ll leave with a checklist of how to quantify the business case for cloud management.TRANSCRIPT
april25-26 sanfrancisco
cloud success starts here
The Business Case for Cloud ManagementNick Kephart, Product Marketing
Manager
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Roadmap• A Tale of Two Clouds
• Benefits Revisited• Challenges Explained
• Why Cloud Management
• A Measurement Framework
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A Tale of Two Clouds
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Benefits Revisited
Production model: Pooled
Delivery model: Network & API accessible
Service model: On-demand self-service
Usage model: Elastic resources
Billing model: Metered pay-per-use
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Modular building blocks
Multi-tenant, high density
Purpose-built systems
Single-tenant, low density
Pooled
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Network and API Accessible
Designed for networked access
Programmatic and extensible
Designed for isolation
Monolithic
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On-Demand Self-Service
Focus on wait, throughput
Decentralized
Focus on service level
Centrally controlled
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Elastic Scale
‘Infinitely’ scalable
Sized to current use
Capacity-bound
Sized to peaks
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Metered Pay-Per-Use
Opex
Allocation based on usage
Capex + Maintenance
Allocation based on forecast
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Accidental Cloud Tourists
Sign up, launch servers, sit back…
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Challenges Explained
Production model: Consistency
Delivery model: Security
Service model: Waste and inefficiency
Usage model: Automation
Billing model: Planning and tracking
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Pooled
Consistent performance & reliability
Consistent utilization
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Network and API Accessible
Security outside the private
network
Heterogeneous APIs and
behaviors
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On-Demand Self Service
Simple, flexible ordering
Complex merchandising and
procurement
Self-service deprovisioning?
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Elastic Scale
Architectural rework
Dynamic configuration
Integrated monitors and
orchestration
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Metered Pay-Per-Use
Budgeting
Chargeback
Purchase options
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WhyCloudManagement?
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Our View of Cloud ManagementA framework of tools to solve cloud challenges and increase your ability to enjoy cloud benefits
Consistency and reliability of shared, commodity
resources
Secure access to a variety of remote, networked resources
Self-service accessibility of an approved configuration
menu
Elastic, instantaneous scalability driven by automation
Usage transparency and optimization
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The Core Cloud Management Toolset• Resource management
• Deployment-level
• Governance• Policy management• Identity and access management• Usage and cost management
• Configuration• Configuration management• Service catalog• License management
• Automation• Resource monitoring and alerting• Automated scaling and deployment orchestration
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Delivered as a PlatformA platform that delivers these necessary tools:• Hosted to improve service, speed of innovation, and
cost• Abstracted to cover leading, changing cloud
technologies
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What Does This Mean for Your Business?
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What Does This Mean for Your Business?Combat complexity and stay
organized
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What Does This Mean for Your Business?Respond quickly to customer and market
demands
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What Does This Mean for Your Business?Spend less time
firefighting
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What Does This Mean for Your Business?Keep tabs on what’s
happening
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What Does This Mean for Your Business?Stay flexible and
portable
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What Does This Mean for Your Business?Focus on your core
competencies
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What Does This Mean for Your Business?Combat complexity and stay organized
Respond quickly to customer and market demands
Spend less time firefighting
Keep tabs on what’s happening
Stay flexible and portable
Focus on your core competencies
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A Measurement Framework
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A Measurement Framework
1 Determine your cloud success criteria
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Step 1: Determine Cloud Success Criteria• Efficiency
• Overhead• Infrastructure spend
• Speed• Provisioning
• Reliability• Uptime• Mean time to recovery
• Integration• With config mgmt, monitoring, orchestration, directory services• With existing processes
• Portability
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Case Study: Pharma Cloud POC
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Case Study: Success Criteria
Unified administration and monitoring of services
across clouds Enhanced data portability and storage capabilities Abstract cloud images that are compatible with any
cloud provider
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Case Study: Success Criteria Reduced development costs when migrating across
cloud providers• Cost avoidance – 50%• Cycle time reduction – 50-70%
Reduced overhead costs for system administration and monitoring of cloud based applications• Cycle time reduction – 50-70%• Cost avoidance – 50%• Employee productivity + 30%
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A Measurement Framework
1 Determine your cloud success criteria
2 Apply benchmarks or measure your own
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Cost Savings Means Admin Efficiency
Server-to-admin ratio is an indicator of admin costs
• Inefficient operations as low as 20:1
• Above average ratio 150:1 (enterprises typically 70-140)
• Best practices over 2,000:1 (some customers achieve this)
Savings on admin costs of easily 50%
Architectural Engineering Total8%
Deployment Management To-
tal31%
Incident Management To-tal
20%
Problem Engi-
neering Total10%
Over-head To-
tal11%
Re-quests Total6%
Software Devel-opment Total7%
Site Management Total7%
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Step 2: Benchmarks• Collect:
• Development Time• Effort Time• Compute Time• Cycle Time
• Calculate:• Development Costs• Labor Costs• Overhead Costs
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Case Study: Measured Benchmarks
Cycle Time Development Time
Effort Time0:00:00
0:28:48
0:57:36
1:26:24
1:55:12
2:24:00
2:52:48
Portability of a Hadoop Application
Baseline (Avg)
Experiment (Avg)
Measures
Am
ou
nt
of
Tim
e
88% Decrease87% Decrease
Scenario: A Hadoop application is being used on a certain cloud provider. It is decided that another provider will work better for the business needs of the team and the Hadoop application needs to be migrated.
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Case Study: Measured Benchmarks
Cycle Time Effort Time Compute Time0:00:00
0:07:12
0:14:24
0:21:36
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Managing Multiple Instances
Measures
Am
ou
nt
of
Tim
e
52% De-crease
36% De-crease
Scenario: 5 applications are being developed to ensure best performance, the applications are being built in each provider. Once the servers are built it is decided to terminate a server from each cloud provider. It is now necessary to reboot server, start a server and stop a server from each provider.
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Case Study: Measured Benchmarks
Development Time
Cycle Time Effort Time Compute Time
0:00:00
0:14:24
0:28:48
0:43:12
0:57:36
1:12:00
1:26:24
1:40:48
Creating/Destroying Instances
Baseline (Avg)Measures
Am
ou
nt
of
Tim
e
90% De-crease
64% De-crease 36% De-
crease
Scenario: 5 applications are being developed to ensure best performance, the applications are being built in each provider. Once the servers are built it is decided to terminate a server from each cloud provider. It is now necessary to reboot server, start a server and stop a server from each provider.
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A Measurement Framework
1 Determine your cloud success criteria
2 Apply benchmarks or measure your own
3 Weigh results versus alternatives
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Step 3: Weigh Results versus Alternatives• What is your comparison set?
• Cloud provider console• Build your own tools• Manual processes
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Case Study: Comparison to Cloud Provider
MeasureDifferenc
e%
ChangeDevelopment Costs
$ (137.92) -88%
Overhead Costs $ (157.29) -84%
Labor Costs $ (150.83) -87%
100 Applications
$13,732 Savings for Development Costs
$15,083 Savings for Labor Costs
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Step 3: Achieved with RightScale• IT Productivity Gains (Savings over using cloud APIs or
consoles)• Initial deployment: Save 67% to 85% • Ongoing maintenance: Save 50%• Re-using existing cloud assets: Save in excess of 90%
• Use Case Examples (Gains over in-house or hosted alternatives)• Autoscaling: Save 88% • Batch Processing: Save 69% to 75% • Repeatable Configurations: Save 60% to 70%
april25-26 sanfrancisco
cloud success starts here
Questions?