Overcoming Cost Intransparency of Cloud Computing

Nane Kratzke
Nane KratzkeProfessor for Computer Science at Lübeck University of Applied Sciences
Nane Kratzke

OVERCOMING EX ANTE COST
INTRANSPARENCY OF CLOUDS



                                    Prof. Dr. rer. nat. Nane Kratzke
                                                                       1
                Computer Science and Business Information Systems
Analyzing Impacts of Clouds




          <=)@:":0$.$"#):"+)A4?$%":"2$)
              )"*'!&1($$)($234")56B8)

      !"#$%&%'($)*'+$)        9&$%:34")4;)<=>
       ,-(#$.)/$('0")            ,$%?'2$()

           !"#$%&&                   '!'()
      1($$)($234")5678)       1($$)($234")5678)


                                                     Prof. Dr. rer. nat. Nane Kratzke
                                                                                        2
                                 Computer Science and Business Information Systems
Analyzing Impacts of Clouds
   to COBIT




                  Reduced efforts for                                       Additional efforts for

•  Continuous Service                                     •  Assess and manage IT-Risks
•  Manageability of Performance and Capacity              •  Ensure compliancy with external requirements
•  Procure IT-Resources and Identify and allocate costs   •  More complex Configuration management and IT-
•  Monitor and evaluate IT-performance                       Processes/Relationships

                                                                                        Prof. Dr. rer. nat. Nane Kratzke
                                                                                                                           3
                                                                    Computer Science and Business Information Systems
Analyzing Impacts of Clouds
to TOGAF

                                         Reduced efforts for

                              •  Use billable SaaS or PaaS items as
                                 building blocks for information
                                 systems architecture
                                 •  Data architecture
                                 •  Application architecture

                              •  Use billable IaaS items as building
                                 blocks for technology architecture

                              •  Use scalability and cost associativity
                                 as well as pay-as-you-go to generate
                                 new oportunities and solutions
                                 •  100 processing units for one hour
                                 •  100 hours of one processing unit
                                 •  Produce (almost) the same costs
                                 •  Experimentation is cheap


                                                           Prof. Dr. rer. nat. Nane Kratzke
                                                                                              4
                                       Computer Science and Business Information Systems
Analyzing Impacts of Clouds
to ITIL

                              Reduced efforts for

                              •  Service Design
                                 •  Capacity Management
                                 •  Availability Managemet
                                 •  Continuity Management
                              •  Service Operation
                                 •  Event Management
                                 •  Incident Management
                                 •  Problem Management

                              Additional efforts for

                              •  Service Design
                                 •  Service Level Management
                                 •  Information Security
                                    Management
                              •  Service Transition
                                 •  Asset and Configuration
                                    Management

                                                   Prof. Dr. rer. nat. Nane Kratzke
                                                                                      5
                               Computer Science and Business Information Systems
Qualitative Weaknesses and Strengths of Clouds


                     Strength                                Weakness



                                           l
                        cture and low leve
      Physical infrastru mer perspective)
                        o
      service free (cust
                                                                     mpliancy
                                                      More complex co t
                             ted functional                 managemen
        Pro vision of automa
                      services

                                                                                           t
                                                                   cu   rity managemen
                                                   More complex se
                                (ex post)
            Cost transparency

                                                                                      d
                                                                     rvice, process an
                                                    More complex se anagement
                                 ntinuousity and        configuration m
       Inhe rent scalability, co
                      availability




                                                                                  Prof. Dr. rer. nat. Nane Kratzke
                                                                                                                     6
                                                              Computer Science and Business Information Systems
So – everthing is beautifull?
No substantial show stoppers?


•  Higher order showstoppers for cloud approaches
                                    Hard to handle
    •  Security and Compliance Management
    •  Incompatible SLAs
    •  Especially national laws, privacy, data ownership,
       confidentiality, data location, forensic evidence, auditing, etc.


•  Decision making showstoppers for cloud approaches
                                     Could be solved
    •  Ex post but no ex ante cost transparency
    •  Relevant costs of cloud approaches must be known before a
       system enters operation
    •  Otherwise IT investment decisions pro or contra cloud based
       approaches can not been made


                                                                  Prof. Dr. rer. nat. Nane Kratzke
                                                                                                     7
                                              Computer Science and Business Information Systems
Costs are influenced by




             Your System
               Usage




  Your System                                                   Costs
                       XaaS Usage
  Architecture


                                                        Prof. Dr. rer. nat. Nane Kratzke
                                                                                           8
                                    Computer Science and Business Information Systems
Costs are influenced by ...
To be validated by ongoing research


                                           User accounts
              Your System
                Usage                      Amount of unique visitors/users
                                           Amounts of user/system requests



                                                      24x7
                                                      Loadbalancing and autoscaling
                                                      asset groups
    Generated             Your System
   XaaS Usage             Architecture                Structure of processing tier
                                                      (network)
                                                      Structure of storage and backup
                     Data transfer
                                                      tier (network)
                     Data storage
                     Data processing
                     Monitoring efforts (e.g. events, IaaS)
                     Amount of sub-service requests (PaaS, SaaS)
                                                                       Prof. Dr. rer. nat. Nane Kratzke
                                                                                                          9
                                                   Computer Science and Business Information Systems
Finding nearest neighbors to exploit
comparable ex-post costs of other systems



      !"#$%&'()*%&)+),*-&).(/*&



                                  cost estimations




          operated systems with ex post costs
          planned system

                                                        Prof. Dr. rer. nat. Nane Kratzke
                                                                                           10
                                    Computer Science and Business Information Systems
Select comparable systems and collected
data by similarity


 !"#$%&'()'*)%()#+,-&(.)   !"#$%&'()'*)%()#+,-&(.)    !"#$%&'()'*)%()#+,-&(.)
 /0'12)3%-#2)45678-9#:)    /0'12)3%-#2)45678-9#:)     /0'12)3%-#2)45678-9#:)


          =+)                       =+)                            =+)
         ;'-9)                     ;'-9)                          ;'-9)
         /'-9-)                    /'-9-)                         /'-9-)



                                                                                      System
  Selection of the                                                                  Architecture
  most comparable
  operated system                                         =+)
                              /'-9)<%0<10%&'()
                                                         >(9#)
                                   :'2#0)
                                                         /'-9-)


                                                 ;0%((,(.)%)<':"%$%30#)
                                                 /0'12)3%-#2)45678-9#:)


                                                                              Prof. Dr. rer. nat. Nane Kratzke
                                                                                                                 11
                                                          Computer Science and Business Information Systems
Conclusion
or: Vision for ongoing research


   •  Collect and Provide Data
        •  Your System Usage, Provided Service Usage
        •  Your System Architecture, Costs (Billing)
   •  of real world cloud-based applications/services
      in order to estimate costs for planned cloud-based
      costs/services


                          CLOUDLAB
                          Cost, Usage, and Architecture Analytics
                          for Cloud-based Information Systems



                                                              Prof. Dr. rer. nat. Nane Kratzke
                                                                                                 12
                                          Computer Science and Business Information Systems
1 of 12

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Overcoming Cost Intransparency of Cloud Computing

  • 1. Nane Kratzke OVERCOMING EX ANTE COST INTRANSPARENCY OF CLOUDS Prof. Dr. rer. nat. Nane Kratzke 1 Computer Science and Business Information Systems
  • 2. Analyzing Impacts of Clouds <=)@:":0$.$"#):"+)A4?$%":"2$) )"*'!&1($$)($234")56B8) !"#$%&%'($)*'+$) 9&$%:34")4;)<=> ,-(#$.)/$('0") ,$%?'2$() !"#$%&& '!'() 1($$)($234")5678) 1($$)($234")5678) Prof. Dr. rer. nat. Nane Kratzke 2 Computer Science and Business Information Systems
  • 3. Analyzing Impacts of Clouds to COBIT Reduced efforts for Additional efforts for •  Continuous Service •  Assess and manage IT-Risks •  Manageability of Performance and Capacity •  Ensure compliancy with external requirements •  Procure IT-Resources and Identify and allocate costs •  More complex Configuration management and IT- •  Monitor and evaluate IT-performance Processes/Relationships Prof. Dr. rer. nat. Nane Kratzke 3 Computer Science and Business Information Systems
  • 4. Analyzing Impacts of Clouds to TOGAF Reduced efforts for •  Use billable SaaS or PaaS items as building blocks for information systems architecture •  Data architecture •  Application architecture •  Use billable IaaS items as building blocks for technology architecture •  Use scalability and cost associativity as well as pay-as-you-go to generate new oportunities and solutions •  100 processing units for one hour •  100 hours of one processing unit •  Produce (almost) the same costs •  Experimentation is cheap Prof. Dr. rer. nat. Nane Kratzke 4 Computer Science and Business Information Systems
  • 5. Analyzing Impacts of Clouds to ITIL Reduced efforts for •  Service Design •  Capacity Management •  Availability Managemet •  Continuity Management •  Service Operation •  Event Management •  Incident Management •  Problem Management Additional efforts for •  Service Design •  Service Level Management •  Information Security Management •  Service Transition •  Asset and Configuration Management Prof. Dr. rer. nat. Nane Kratzke 5 Computer Science and Business Information Systems
  • 6. Qualitative Weaknesses and Strengths of Clouds Strength Weakness l cture and low leve Physical infrastru mer perspective) o service free (cust mpliancy More complex co t ted functional managemen Pro vision of automa services t cu rity managemen More complex se (ex post) Cost transparency d rvice, process an More complex se anagement ntinuousity and configuration m Inhe rent scalability, co availability Prof. Dr. rer. nat. Nane Kratzke 6 Computer Science and Business Information Systems
  • 7. So – everthing is beautifull? No substantial show stoppers? •  Higher order showstoppers for cloud approaches Hard to handle •  Security and Compliance Management •  Incompatible SLAs •  Especially national laws, privacy, data ownership, confidentiality, data location, forensic evidence, auditing, etc. •  Decision making showstoppers for cloud approaches Could be solved •  Ex post but no ex ante cost transparency •  Relevant costs of cloud approaches must be known before a system enters operation •  Otherwise IT investment decisions pro or contra cloud based approaches can not been made Prof. Dr. rer. nat. Nane Kratzke 7 Computer Science and Business Information Systems
  • 8. Costs are influenced by Your System Usage Your System Costs XaaS Usage Architecture Prof. Dr. rer. nat. Nane Kratzke 8 Computer Science and Business Information Systems
  • 9. Costs are influenced by ... To be validated by ongoing research User accounts Your System Usage Amount of unique visitors/users Amounts of user/system requests 24x7 Loadbalancing and autoscaling asset groups Generated Your System XaaS Usage Architecture Structure of processing tier (network) Structure of storage and backup Data transfer tier (network) Data storage Data processing Monitoring efforts (e.g. events, IaaS) Amount of sub-service requests (PaaS, SaaS) Prof. Dr. rer. nat. Nane Kratzke 9 Computer Science and Business Information Systems
  • 10. Finding nearest neighbors to exploit comparable ex-post costs of other systems !"#$%&'()*%&)+),*-&).(/*& cost estimations operated systems with ex post costs planned system Prof. Dr. rer. nat. Nane Kratzke 10 Computer Science and Business Information Systems
  • 11. Select comparable systems and collected data by similarity !"#$%&'()'*)%()#+,-&(.) !"#$%&'()'*)%()#+,-&(.) !"#$%&'()'*)%()#+,-&(.) /0'12)3%-#2)45678-9#:) /0'12)3%-#2)45678-9#:) /0'12)3%-#2)45678-9#:) =+) =+) =+) ;'-9) ;'-9) ;'-9) /'-9-) /'-9-) /'-9-) System Selection of the Architecture most comparable operated system =+) /'-9)<%0<10%&'() >(9#) :'2#0) /'-9-) ;0%((,(.)%)<':"%$%30#) /0'12)3%-#2)45678-9#:) Prof. Dr. rer. nat. Nane Kratzke 11 Computer Science and Business Information Systems
  • 12. Conclusion or: Vision for ongoing research •  Collect and Provide Data •  Your System Usage, Provided Service Usage •  Your System Architecture, Costs (Billing) •  of real world cloud-based applications/services in order to estimate costs for planned cloud-based costs/services CLOUDLAB Cost, Usage, and Architecture Analytics for Cloud-based Information Systems Prof. Dr. rer. nat. Nane Kratzke 12 Computer Science and Business Information Systems