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Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
Multi-Cloud Economics by Cloudyn Feb 2014
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Multi-Cloud Economics by Cloudyn Feb 2014

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Cloudyn's VP of Products, Vittaly Tavor, discusses cost performance in a multi-cloud environment. In this presentation various cloud cost issues are covered - from migration from on-premise to the …

Cloudyn's VP of Products, Vittaly Tavor, discusses cost performance in a multi-cloud environment. In this presentation various cloud cost issues are covered - from migration from on-premise to the cloud, through comparing different Iaas pricing models, hot tips on optimizing cloud costs to full multi-cloud cost management

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  • 1. Multi-cloud Economics February 26, 2014 IGT Cloud Workshop Vittaly Tavor – VP Products, Cloudyn
  • 2. Agenda • Cost Structure • Cost Management • The Importance of Cost Management • IaaS Pricing Models • Cloud Cost Distribution • Cost Management Tips • Q&A
  • 3. Cloud cost structure On-Premises/Private Cloud • Capex Examples – Floor space – Air Conditioning Systems – Hardware Equipment – Network Infrastructure – Management Software • Opex Examples – Monthly Bills (Electricity, Internet etc.) – Licensing • HR Public Clouds • Capex Examples – None (well, depending how you define packages purchased in advance) • Opex Examples – On-demand Service Consumption – Timed Storage – Network Bandwidth – Licensing (in BYO models) • HR
  • 4. Worldwide spending on servers (IDC, 2012)
  • 5. Effects of server aging (IDC, 2012)
  • 6. Cloud financial advantages – theory • No initial investment • Only operating expenses (OpEx) • Pay only for what you need • Allow temporary access to vast resources, infeasible otherwise • CFO nirvana
  • 7. Cloud financials - reality • Welcome to a resource sprawling world • Resources are typically over-allocated • Hidden costs • Highest rates • Each bill – new surprises Cost needs to be tightly managed! Cloud may be really beneficial, but if you don’t pay attention:
  • 8. Cost importance • Traditional IT detects issues using APM tools • In a cloud, cost is the first indication of an issue! – Unneeded instances – Degraded performance – Increased I/O – Increased query size • Cloud cost monitoring exposes anomalies
  • 9. Cloud pricing models • On-demand – No commitments, charged by minute/hour • Commitment-based (Google) – Commit for minimal payment. Not yet available through self- service • Hours commitment plan (Azure) – Purchase “hours bank” • Reserved instances (Amazon) – Initial one-time fee – Lower usage fees • Spot instances (Amazon)
  • 10. Cloud cost distribution Service Total Cost % Instances 66.07% Disks 16.16% Storage 4.38% SQL DB 5.08% Support 3.64% Load Balancers 1.34% Rest 3.33%
  • 11. Buying a cloud “instance” • Server Type ($100 - $60,000 / year) – CPU – Memory – I/O – Network (Possibly at additional costs) – Special Features (SSD, GPU, …) • Persistent Disk(s) ($0.04-$0.05/GB/Month) • Bandwidth Costs ($0.15/GB) • Loadbalancer ($0.025/Hour + $0.008/GB) • Monitoring
  • 12. Comparing clouds – instances • Charge resolution (minute? hour?) – Amazon – by hour – Google – by minute, min. 10 minutes • Committed price plans – Google – usage commitment – Amazon – reserved, spots • Amazon special-purpose instances
  • 13. Comparing clouds – disks Example: 100GB disk, ~500 provisioned IOPS • Google: – Timed storage: 100 x $0.04 = $4/month – No IO costs • Amazon: – Timed storage: 100 x $0.125 = $12.5/month – IOPS: $0.1 x 500 = $50/month (!) – An instance should be launched as EBS-optimized
  • 14. Tips • Use special pricing wherever possible • Plan for a possibility to switch providers • Search for hidden costs – these may be very high Manage your costs on daily bases!
  • 15. Cloudyn at a glance • Multi-dimensional cloud analytics (full visibility) • Cost, performance, usage and lifecycle • Actionable recommendations for – Resources relocation & reassignment – Right-sizing – Best pricing selection • Cost and capacity planning We monitor and optimize cloud deployments
  • 16. Smile
  • 17. Thank You vit@cloudyn.com

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