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New Chargeback - Sergio Ocon - ManageIQ Design Summit 2016

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Working to design the new chargeback interface by Sergio Ocón at ManageIQ Design Summit 2016

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New Chargeback - Sergio Ocon - ManageIQ Design Summit 2016

  1. 1. Proposal for a New Chargeback in ManageIQ Sergio Ocón (sergio.ocon@redhat.com) A bunch of others that could not make it here today ManageiQ Design Summit June 2016 @sergioocon github:sergio-ocon
  2. 2. Agenda The problem Understanding the cost structure External costs Consumption intelligence Priorities Improvements to rating and billing
  3. 3. The problem Accurately report information about the financial side of the virtualization and cloud environment Cost allocation and distribution For Operational, Tactical and Strategical management Integrate with other elements in the company: Data-warehouse / ERP / Billing Being able to understand economic results of actions: Costs of changing all infrastructure to the cloud Renewal of hardware
  4. 4. Being able to understand the costs of the infrastructure is key to manage it Integrating with DWH / ERP / Billing for company-wide management This is not a financial system Simplified: no taxes, no legal, no payments Understanding the costs Inputs Reports Dashboards Analysis EXPORT ERP Billing DWH
  5. 5. Differentiating views on costs Expense: cost to the user Associated to users and services “Independent” of costs of service (but related) Cost: infrastructure and providers Amount expended to maintain the infrastructure Associated to providers External and internal costs Budget
  6. 6. Activity Centers Use | Infrastructure Use | Infrastructure Use | Infrastructure Instance Storage Network Container Service VAS Compute Memory Performance CPU Other Fixed + variable Fixed + variable Fixed + variable Costs (direct + indirect) 1. Individual elements costs - how much it costs to have it running (i.e. VM, container, LUN, hypervisor, etc) 2. Cost center grouping a. Numbering schemes b. G/L account-type scheme 3. Tenant / Cost grouping a. Understand costs by group/user/tenant 4. KPI a. Cost/VM b. Cost/Transaction c. Cost/VM/Provider 5. Amortization a. OPEX/CAPEX Costdistribution Costs
  7. 7. Activity Centers Modifier Modifier Modifier Costs Instance Storage Network Container Service VAS Compute Support level Licenses Managed Other Fixed + variable Fixed + variable Fixed + variable 1. Individual elements costs - how much it costs to have it running (i.e. VM, container, LUN, hypervisor, etc) 2. Cost center grouping a. Numbering schemes b. G/L account-type scheme 3. Tenant / Cost grouping a. Understand costs by group/user/tenant 4. KPI a. Cost/VM b. Cost/Transaction c. Cost/VM/Provider 5. Amortization a. OPEX/CAPEX Costdistribution Costs (direct + indirect)
  8. 8. Activity Centers Modifier Modifier Costs Instance Storage Network Container Service VAS Compute Electricity Personnel Other Fixed + variable Fixed + variable 1. Individual elements costs - how much it costs to have it running (i.e. VM, container, LUN, hypervisor, etc) 2. Cost center grouping a. Numbering schemes b. G/L account-type scheme 3. Tenant / Cost grouping a. Understand costs by group/user/tenant 4. KPI a. Cost/VM b. Cost/Transaction c. Cost/VM/Provider 5. Amortization a. OPEX/CAPEX Costdistribution Costs (direct + indirect)
  9. 9. Activity Centers Expense Instance Storage Network Container Service VAS Compute Other 1. Price per service associated to user / group / tenant a. Different users can have different prices b. Service can be a VM or a mix of VM and storage c. Different options for the same service 2. Dependencies in prices a. I.e. Service includes 3 GB of storage for free b. Unlimited VM 3. Reserved or used 4. Relatively independent of costs a. Cost+ b. Income- 5. Wholesale + Retail Service catalogue Service 1 Service 2 Option A Option B Service 3 Not allowed
  10. 10. External costs Some costs are external, meaning: You don’t control them Their price can vary with time outside of your control Examples Public cloud costs Licensing renewal Those elements have to be included in the model in an automatic/manual way Using public API Time-bounded
  11. 11. Consumption Intelligence Demand a. What is the demand b. How it is structured Costs a. What are the costs b. Structure KPI★ This are not mockups of the result
  12. 12. Consumption Intelligence
  13. 13. Budget Define expected demand and budget associated to it Compare with actual costs Define strategic plan 12+0 3+9, 6+6, 9+3 0+12
  14. 14. Scenarios and comparative analysis Understand what would be the impact of: Renewing hardware - less hardware needed + OPEX Moving workloads to the cloud => Change of cost structure Compare performance of providers Cost per transaction of changing one or more layer (i.e. HW, storage) Understanding parameters that get affected (i.e. AWS different performance per VM type) Plan for OPEX and CAPEX
  15. 15. Development priorities C & U Time Database Providers Charging Mediation Guiding Export DWH / ERP /Billing Engine Reporting Budgeting Cost association Cost model Expense model KPIDashboard Services definition Rating Billing External costs Dev priority
  16. 16. Rating Tiers Define rates that are dependent on another parameter. I.e. First 3 GiB free, over that 30 c€/month/GiB Steps Minimum step to be rated I.e. 30 c€/mont/GiB, minimum step 5 GiB Everything under 5GiB is rated as 5 GiB, between 5.001 and 10 as 10, etc Discounts Discounting are a modification of rates after rating is done
  17. 17. Billing Automatic billing done by defined period Hourly, daily, weekly, monthly, yearly Without customer request (defined by admin, not user) Wholesale vs. retail Does not include taxing, payment or collection Simplified invoicing Summary vs detail/itemized Independent on reporting
  18. 18. Take aways For strategic management and economic operations Not for financial reporting Capable of integrating with financial systems Multi-layer Costs Income Analysis Dashboards
  19. 19. Thank you!

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