The Business Case for Cloud Management - RightScale Compute 2013

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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

0:28:48

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Managing Multiple Instances

Measures

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ou

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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%

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Questions?