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Optimize your Cloud Purchase Strategy
ISC Cloud & Big Data, 30. September 2015
EACG supports for over 10 years customer to maximize the value
creation of their IT
05.09.16 EACG – Optimize your Cloud Purchase Strategy 2
Digitization Enterprise
Architecture
Cloud
Strategy
IT Audit
This year we founded
The first Rating Agency for Cloud Services!
EACG supports you in identification of Cloud savings potentials
and transformation for „Cloudification“
05.09.16 EACG – Optimize your Cloud Purchase Strategy 3
4 5 6 7 8 9 10 11 12 13KW
Identify Demand
Pattern
Load-/Capacity-
models
Solution Architecture
Savings Potentials
Architecture Analysis
Transformation Costs
(Estimate)
Documentation of architectural
Workloads
Costs Prognosis
Decision
• Proven process
• Short execution time
• Clear focus on cost effectiveness
• Complete picture of all potentials from
Public/Hybrid Clouds
• Take responsibility for overall purchasing process
„EACG supported us with the
Cloud-Assessment to qualify our
Cloud savings potentials. Fast
clear and professional.“
Dirk Lauber
(CEO empiriecom)Cloud
Assessment
A) Clearly distinguish goals and benefits of different delivery
models
Varying benefits should be tailored according to the use
case needs
05.09.16 EACG – Optimize your Cloud Purchase Strategy 4
Platform	as	a	Service
(PaaS)
PaaS
(management of scalability)
• Hardware-Purchase (CAPEX)
• Server-Operations (Staff)
• Potentially License expenses
• Configuration (Staff/Setup)
• Administration (Staff)
Software	as	a	Service
(SaaS)
SaaS
(free from everything and fast)
• Hardware-Purchase (CAPEX)
• Server-Operations (Staff)
• Time to market
• Licenses
• Costs of integration (partly)
Infrastructure	as	a	Service
(IaaS)
IaaS
(bare capacity)
• Hardware-Purchase (CAPEX)
• Server-Operations (Staff)
• Time to operation
• Hardware availability
Sample: SaaS perfectly suited for all secondary processes
1. Process efficiency in secondary processes
• Value creation in core process => Focus
• Efficiency in secondary processes relevant for
overall efficiency
• Specialists focus on improvement in secondary
processes
2. Technical support functions
• Telephone, Fax, Mail, Spam-protection, Interfaces,
Printing, Archiving, etc.
• Service must not be individual
• Specialist always better and more cost efficient
3. Primary processes
• Interesting for small companies (professional
management and innovation)
• Larger corporation need to watch differentiation
• Threat to innovation
05.09.16 EACG – Optimize your Cloud Purchase Strategy 5
Partner
(PMs)
Kunde
(Investor)
CORP
Purchase
(Assets)
Production
(Mgmt)
Sales
Operations Support
Finance and Business Support
ExternalviewInternalview
Core functions of a corporation
primarysecodary
B) Accept the Hybrid Cloud or dynamic scale-out as future design
model for each datacentre
Pressure on cost- and efficiency will continue to rise, Cost efficiency realized always by scale
• Reduction of operating expenses typically cause by economies of scale
• Admin-Sever-Ratios of several thousand Servers per admin will reduce staff expense enormously
• New locations for operations without cooling will further reduce power consumption
• Over-provisioning as success driver
Your Datacentre IaaS Provider
VPN
Endpoint
VPN
Endpoint
Internet
System n
System 1
Scale out
Manager
Provider API
Scale out n
Scale out 1
MAN
DATA
05.09.16 EACG – Optimize your Cloud Purchase Strategy 6
Sample: Dynamic resource allocation will reduce CAPEX
05.09.16 EACG – Optimize your Cloud Purchase Strategy 7
Static case:
24h *6* capacity for 1 Mil requests = 144 Mil request capacity
Dynamic case:
7h* 1Mio + 8h * 2 Mil + 7h * 4 Mil + 5h * 5 Mil + 1 * 6 Mil = 82 Mil request capacity
Demand profile Capacity
Typically capacity is not used equally, here only 56%
Ensure you understand your capacity requirements correctly
Compute almost already became an exchangeable good
Cost efficient consumers will search for the best price / quality
C) Break off long term thinking and adopt on-demand
consumption for commodity services
05.09.16 EACG – Optimize your Cloud Purchase Strategy 8
Provider	A
Provider	B
Provider	C
Case A (21.4.)
Case A (22.4.)
Case A (23.4.)
D) Identify your specific use case to optimize your spending
Batch Data Processing
Must Haves
• Reliable API
• High compute capacity
• High DC Peering Capacity
Should Have
• Network configuration capability
Transaction scale-out
Must Have
• Virtual IP
• Internal IPv4 Multicast
• API for automated scaling
• Image Management
Should Have
• Meta Data Management
05.09.16 EACG – Optimize your Cloud Purchase Strategy 9
Be clear about the case you are searching to support.
As requirements vary so does provider suitability!
E) Understand pricing strategies and performance strengths of
your provider
05.09.16 EACG – Optimize your Cloud Purchase Strategy 10
Understanding pricing strategies and positions of providers makes it
simple to choose the correct provider upon your specific case
27
33
40
32
44
35
0 10 20 30 40 50
16CORES - 64GB
4CORES - 16GB
1CORE - 4GB
PRICE-PERFROMANCE
(EUR/MASC) Linux
Market Average
SOFTLAYER
-
500
1.000
1.500
2.000
2.500
3.000
3.500
1TB 4TB 5TB 10TB 30TB 50TB
TRAFFIC SENSITIVITY
SOFTLAYER Market average
ASCAMSO platform supports you with information and tools
along the complete purchase decision process
05.09.16 EACG – Optimize your Cloud Purchase Strategy 11
Match
Market
Assess
Requirements
Discover
Opportunities
Compare
Cost Decide
Knowledge Base
Use Case Library
Benchmarking
Monitoring
Ratings
F
Cost Calculator
EACG GmbH – Enterprise Architecture Consulting Group
Taunustor 1
TanusTurm 18.OG
60310 Frankfurt am Main
T: +49 69 153 227 750
F: +49 69 153 227 751
Dipl. Wirtsch.-Inf. Jan Thielscher, LL.M.

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Optimize your Cloud Purchase Strategy

  • 1. Optimize your Cloud Purchase Strategy ISC Cloud & Big Data, 30. September 2015
  • 2. EACG supports for over 10 years customer to maximize the value creation of their IT 05.09.16 EACG – Optimize your Cloud Purchase Strategy 2 Digitization Enterprise Architecture Cloud Strategy IT Audit This year we founded The first Rating Agency for Cloud Services!
  • 3. EACG supports you in identification of Cloud savings potentials and transformation for „Cloudification“ 05.09.16 EACG – Optimize your Cloud Purchase Strategy 3 4 5 6 7 8 9 10 11 12 13KW Identify Demand Pattern Load-/Capacity- models Solution Architecture Savings Potentials Architecture Analysis Transformation Costs (Estimate) Documentation of architectural Workloads Costs Prognosis Decision • Proven process • Short execution time • Clear focus on cost effectiveness • Complete picture of all potentials from Public/Hybrid Clouds • Take responsibility for overall purchasing process „EACG supported us with the Cloud-Assessment to qualify our Cloud savings potentials. Fast clear and professional.“ Dirk Lauber (CEO empiriecom)Cloud Assessment
  • 4. A) Clearly distinguish goals and benefits of different delivery models Varying benefits should be tailored according to the use case needs 05.09.16 EACG – Optimize your Cloud Purchase Strategy 4 Platform as a Service (PaaS) PaaS (management of scalability) • Hardware-Purchase (CAPEX) • Server-Operations (Staff) • Potentially License expenses • Configuration (Staff/Setup) • Administration (Staff) Software as a Service (SaaS) SaaS (free from everything and fast) • Hardware-Purchase (CAPEX) • Server-Operations (Staff) • Time to market • Licenses • Costs of integration (partly) Infrastructure as a Service (IaaS) IaaS (bare capacity) • Hardware-Purchase (CAPEX) • Server-Operations (Staff) • Time to operation • Hardware availability
  • 5. Sample: SaaS perfectly suited for all secondary processes 1. Process efficiency in secondary processes • Value creation in core process => Focus • Efficiency in secondary processes relevant for overall efficiency • Specialists focus on improvement in secondary processes 2. Technical support functions • Telephone, Fax, Mail, Spam-protection, Interfaces, Printing, Archiving, etc. • Service must not be individual • Specialist always better and more cost efficient 3. Primary processes • Interesting for small companies (professional management and innovation) • Larger corporation need to watch differentiation • Threat to innovation 05.09.16 EACG – Optimize your Cloud Purchase Strategy 5 Partner (PMs) Kunde (Investor) CORP Purchase (Assets) Production (Mgmt) Sales Operations Support Finance and Business Support ExternalviewInternalview Core functions of a corporation primarysecodary
  • 6. B) Accept the Hybrid Cloud or dynamic scale-out as future design model for each datacentre Pressure on cost- and efficiency will continue to rise, Cost efficiency realized always by scale • Reduction of operating expenses typically cause by economies of scale • Admin-Sever-Ratios of several thousand Servers per admin will reduce staff expense enormously • New locations for operations without cooling will further reduce power consumption • Over-provisioning as success driver Your Datacentre IaaS Provider VPN Endpoint VPN Endpoint Internet System n System 1 Scale out Manager Provider API Scale out n Scale out 1 MAN DATA 05.09.16 EACG – Optimize your Cloud Purchase Strategy 6
  • 7. Sample: Dynamic resource allocation will reduce CAPEX 05.09.16 EACG – Optimize your Cloud Purchase Strategy 7 Static case: 24h *6* capacity for 1 Mil requests = 144 Mil request capacity Dynamic case: 7h* 1Mio + 8h * 2 Mil + 7h * 4 Mil + 5h * 5 Mil + 1 * 6 Mil = 82 Mil request capacity Demand profile Capacity Typically capacity is not used equally, here only 56% Ensure you understand your capacity requirements correctly
  • 8. Compute almost already became an exchangeable good Cost efficient consumers will search for the best price / quality C) Break off long term thinking and adopt on-demand consumption for commodity services 05.09.16 EACG – Optimize your Cloud Purchase Strategy 8 Provider A Provider B Provider C Case A (21.4.) Case A (22.4.) Case A (23.4.)
  • 9. D) Identify your specific use case to optimize your spending Batch Data Processing Must Haves • Reliable API • High compute capacity • High DC Peering Capacity Should Have • Network configuration capability Transaction scale-out Must Have • Virtual IP • Internal IPv4 Multicast • API for automated scaling • Image Management Should Have • Meta Data Management 05.09.16 EACG – Optimize your Cloud Purchase Strategy 9 Be clear about the case you are searching to support. As requirements vary so does provider suitability!
  • 10. E) Understand pricing strategies and performance strengths of your provider 05.09.16 EACG – Optimize your Cloud Purchase Strategy 10 Understanding pricing strategies and positions of providers makes it simple to choose the correct provider upon your specific case 27 33 40 32 44 35 0 10 20 30 40 50 16CORES - 64GB 4CORES - 16GB 1CORE - 4GB PRICE-PERFROMANCE (EUR/MASC) Linux Market Average SOFTLAYER - 500 1.000 1.500 2.000 2.500 3.000 3.500 1TB 4TB 5TB 10TB 30TB 50TB TRAFFIC SENSITIVITY SOFTLAYER Market average
  • 11. ASCAMSO platform supports you with information and tools along the complete purchase decision process 05.09.16 EACG – Optimize your Cloud Purchase Strategy 11 Match Market Assess Requirements Discover Opportunities Compare Cost Decide Knowledge Base Use Case Library Benchmarking Monitoring Ratings F Cost Calculator
  • 12. EACG GmbH – Enterprise Architecture Consulting Group Taunustor 1 TanusTurm 18.OG 60310 Frankfurt am Main T: +49 69 153 227 750 F: +49 69 153 227 751 Dipl. Wirtsch.-Inf. Jan Thielscher, LL.M.