The Business Case for Cloud Management - RightScale Compute 2013

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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.

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  • A riff off of the NIST definition
  • The Business Case for Cloud Management - RightScale Compute 2013

    1. 1. april25-26sanfranciscocloud success starts hereThe Business Case forCloud ManagementNick Kephart, Product Marketing Manager
    2. 2. #2#2#rightscalecomputeRoadmap• A Tale of Two Clouds• Benefits Revisited• Challenges Explained• Why Cloud Management• A Measurement Framework
    3. 3. #rightscalecompute#3#3A Tale of Two Clouds
    4. 4. #4#4#rightscalecomputeBenefits RevisitedProduction model: PooledDelivery model: Network & API accessibleService model: On-demand self-serviceUsage model: Elastic resourcesBilling model: Metered pay-per-use
    5. 5. #5#5#rightscalecomputeModular building blocksMulti-tenant, high densityPurpose-built systemsSingle-tenant, low densityPooled
    6. 6. #6#6#rightscalecomputeNetwork and API AccessibleDesigned for networked accessProgrammatic and extensibleDesigned for isolationMonolithic
    7. 7. #7#7#rightscalecomputeOn-Demand Self-ServiceFocus on wait, throughputDecentralizedFocus on service levelCentrally controlled
    8. 8. #8#8#rightscalecomputeElastic Scale‘Infinitely’ scalableSized to current useCapacity-boundSized to peaks
    9. 9. #9#9#rightscalecomputeMetered Pay-Per-UseOpexAllocation based on usageCapex + MaintenanceAllocation based on forecast
    10. 10. #10#10#rightscalecomputeAccidental Cloud TouristsSign up,launch servers,sit back…
    11. 11. #11#11#rightscalecomputeChallenges ExplainedProduction model: ConsistencyDelivery model: SecurityService model: Waste and inefficiencyUsage model: AutomationBilling model: Planning and tracking
    12. 12. #12#12#rightscalecomputePooledConsistent performance & reliabilityConsistent utilization
    13. 13. #13#13#rightscalecomputeNetwork and API AccessibleSecurity outside the privatenetworkHeterogeneous APIs and behaviors
    14. 14. #14#14#rightscalecomputeOn-Demand Self ServiceSimple, flexible orderingComplex merchandising andprocurementSelf-service deprovisioning?
    15. 15. #15#15#rightscalecomputeElastic ScaleArchitectural reworkDynamic configurationIntegrated monitors and orchestration
    16. 16. #16#16#rightscalecomputeMetered Pay-Per-UseBudgetingChargebackPurchase options
    17. 17. #rightscalecompute#17#17WhyCloudManagement?
    18. 18. #18#18#rightscalecomputeOur View of Cloud ManagementA framework of tools to solve cloud challenges and increase yourability to enjoy cloud benefitsConsistency and reliability of shared, commodity resourcesSecure access to a variety of remote, networked resourcesSelf-service accessibility of an approved configuration menuElastic, instantaneous scalability driven by automationUsage transparency and optimization
    19. 19. #19#19#rightscalecomputeThe 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
    20. 20. #20#20#rightscalecomputeDelivered 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
    21. 21. #rightscalecompute#21#21What Does This Mean for YourBusiness?
    22. 22. #22#22#rightscalecomputeWhat Does This Mean for Your Business?Combat complexity and stay organized
    23. 23. #23#23#rightscalecomputeWhat Does This Mean for Your Business?Respond quickly to customer and market demands
    24. 24. #24#24#rightscalecomputeWhat Does This Mean for Your Business?Spend less time firefighting
    25. 25. #25#25#rightscalecomputeWhat Does This Mean for Your Business?Keep tabs on what’shappening
    26. 26. #26#26#rightscalecomputeWhat Does This Mean for Your Business?Stay flexible and portable
    27. 27. #27#27#rightscalecomputeWhat Does This Mean for Your Business?Focus on your core competencies
    28. 28. #28#28#rightscalecomputeWhat Does This Mean for Your Business?Combat complexity and stay organizedRespond quickly to customer and market demandsSpend less time firefightingKeep tabs on what’s happeningStay flexible and portableFocus on your core competencies
    29. 29. #rightscalecompute#29#29A Measurement Framework
    30. 30. #30#30#rightscalecomputeA Measurement Framework1 Determine your cloud success criteria
    31. 31. #31#31#rightscalecomputeStep 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
    32. 32. #32#32#rightscalecomputeCase Study: Pharma Cloud POC
    33. 33. #33#33#rightscalecomputeCase Study: Success Criteria Unified administration and monitoring of services acrossclouds Enhanced data portability and storage capabilities Abstract cloud images that are compatible with any cloudprovider
    34. 34. #34#34#rightscalecomputeCase Study: Success Criteria Reduced development costs when migrating across cloudproviders• Cost avoidance – 50%• Cycle time reduction – 50-70% Reduced overhead costs for system administration andmonitoring of cloud based applications• Cycle time reduction – 50-70%• Cost avoidance – 50%• Employee productivity + 30%
    35. 35. #35#35#rightscalecomputeA Measurement Framework1 Determine your cloud success criteria2 Apply benchmarks or measure your own
    36. 36. #36#36#rightscalecomputeCost Savings Means Admin EfficiencyServer-to-admin ratio is anindicator of admin costs• Inefficient operations as lowas 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 ofeasily 50%ArchitecturalEngineeringTotal8%DeploymentManagementTotal31%IncidentManagementTotal20%ProblemEngineeringTotal10%OverheadTotal11%RequestsTotal6%SoftwareDevelopmentTotal7%SiteManagementTotal7%
    37. 37. #37#37#rightscalecomputeStep 2: Benchmarks• Collect:• Development Time• Effort Time• Compute Time• Cycle Time• Calculate:• Development Costs• Labor Costs• Overhead Costs
    38. 38. #38#38#rightscalecomputeCase Study: Measured Benchmarks0:00:000:28:480:57:361:26:241:55:122:24:002:52:48Cycle Time Development Time Effort TimeAmountofTimeMeasuresPortability of a Hadoop ApplicationBaseline (Avg)Experiment (Avg)88% Decrease87% DecreaseScenario: A Hadoop application is being used on a certain cloud provider. It is decided thatanother provider will work better for the business needs of the team and the Hadoopapplication needs to be migrated.
    39. 39. #39#39#rightscalecomputeCase Study: Measured Benchmarks0:00:000:07:120:14:240:21:360:28:480:36:00Cycle Time Effort Time Compute TimeAmountofTimeMeasuresManaging Multiple Instances52%Decrease36%DecreaseScenario: 5 applications are being developed to ensure best performance, the applicationsare being built in each provider. Once the servers are built it is decided to terminate aserver from each cloud provider. It is now necessary to reboot server, start a server andstop a server from each provider.
    40. 40. #40#40#rightscalecomputeCase Study: Measured Benchmarks0:00:000:14:240:28:480:43:120:57:361:12:001:26:241:40:48DevelopmentTimeCycle Time Effort Time Compute TimeAmountofTimeMeasuresCreating/Destroying InstancesBaseline(Avg)Experiment(Avg)90%Decrease64%Decrease36%DecreaseScenario: 5 applications are being developed to ensure best performance, the applicationsare being built in each provider. Once the servers are built it is decided to terminate aserver from each cloud provider. It is now necessary to reboot server, start a server andstop a server from each provider.
    41. 41. #41#41#rightscalecomputeA Measurement Framework1 Determine your cloud success criteria2 Apply benchmarks or measure your own3 Weigh results versus alternatives
    42. 42. #42#42#rightscalecomputeStep 3: Weigh Results versus Alternatives• What is your comparison set?• Cloud provider console• Build your own tools• Manual processes
    43. 43. #43#43#rightscalecomputeCase Study: Comparison to Cloud ProviderMeasure Difference % 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
    44. 44. #44#44#rightscalecomputeStep 3: Achieved with RightScale• IT Productivity Gains (Savings over using cloud APIs orconsoles)• 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 hostedalternatives)• Autoscaling: Save 88%• Batch Processing: Save 69% to 75%• Repeatable Configurations: Save 60% to 70%
    45. 45. april25-26sanfranciscocloud success starts hereQuestions?

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