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Controlling Your Cloud Costs

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Learn how to overcome the challenges of cloud cost management like lack of visibility and wastage of spend.

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Controlling Your Cloud Costs

  1. 1. 1 © 2017 ServiceNow All Rights Reserved Confidential© 2017 ServiceNow All Rights Reserved Confidential Controlling Your Cloud Costs Giri Padmanabh Liam Yu Sr. Director Engineering Sr. Product Marketing Manager ServiceNow ServiceNow
  2. 2. © 2017 ServiceNow All Rights Reserved 2© 2017 ServiceNow All Rights Reserved 2 ServiceNow Is a Fast-Growing, Global Company ~4,800 Employees Major Sites San Diego, Silicon Valley, Seattle Amsterdam, London, Sydney, Israel, India $28M $64M $128M $683M $1B ’16 $1.391B ‘09 $244M $425M Strong Revenue & Growth ‘10 ‘11 ‘12 ‘13 ‘14 ‘15
  3. 3. © 2017 ServiceNow All Rights Reserved 3 Agenda • Business Drivers • Solution • Next steps
  4. 4. 4 © 2017 ServiceNow All Rights Reserved Confidential Poll Question #1 • What cloud technologies are you using? (please select all that apply) • AWS • Azure • Google • vSphere • Other
  5. 5. © 2017 ServiceNow All Rights Reserved 5 Poll Question #2 • What cost management challenges are you trying to address? (Please select all that apply) • Visibility of cloud spend across groups, cost centers, and business services • Managing cloud spend within my budget • Reducing wastage of spend across clouds • Others
  6. 6. © 2017 ServiceNow All Rights Reserved 6 Business Demand for Agility • Changing competitive landscape across almost every industry • Shifting customer loyalty and expectations • Time-to-market to capture new markets Disrupt or get disrupted
  7. 7. © 2017 ServiceNow All Rights Reserved 7 Challenges of Cloud Cost Management • Lack of visibility of cloud spend across groups and business services • Spend overshooting the budget • Uncontrolled spend and wastage of spend on cloud Unmanaged consumption of public clouds
  8. 8. © 2017 ServiceNow All Rights Reserved 8 Approval Processes Change Management CMDB Self-Service Catalog ServiceNow Platform Visual Deployment Blueprints Cloud API Layer YAML-Based Templates Blueprint & Service Design Quotas and Compliance Rules Governance Policy Engine Billing & Usage Management Cloud Management Extend single system of engagement to private and public clouds
  9. 9. © 2017 ServiceNow All Rights Reserved 9 Cost Visibility Across Cost-centers, Groups, Business Services
  10. 10. © 2017 ServiceNow All Rights Reserved 10 Tagging • Standard tags defined in ServiceNow – Cost centers, business services, applications, and groups • Defined new standard tags as needed by your business • Cost reports breakdown by defined tags
  11. 11. © 2017 ServiceNow All Rights Reserved 11 Certified and Standardized Service Catalog
  12. 12. © 2017 ServiceNow All Rights Reserved 12 Every Stack Tied to Cost Center, Business Service, Group & Quotas
  13. 13. © 2017 ServiceNow All Rights Reserved 13 Quota Definitions to Control Spend Define Business Group limits
  14. 14. © 2017 ServiceNow All Rights Reserved 14 Data Center Capacity Limits Define maximum limits for resources within data centers
  15. 15. © 2017 ServiceNow All Rights Reserved 15 Live Demo
  16. 16. © 2017 ServiceNow All Rights Reserved 16  Normalized billing data showed abnormal spikes in usage and network on a given date  Ability to drill down and identify subscription contributing to the spike  Additional drill down helped identify VMs running in subscription, running heavy data transfer into storage accounts Identify Abnormalities and Root Causes
  17. 17. © 2017 ServiceNow All Rights Reserved 17  NonProd Azure subscription constantly had increased compute costs  Close examine of billing data and VMs associated with subscriptions helped identify the zombie resource (not active), that helped customer to immediately shutdown and control cost  Next day billing data pull clearly showed the drop in compute costs for that subscription Identify Zombie Resources and Contribution to the Cost
  18. 18. © 2017 ServiceNow All Rights Reserved 18  Created a Database View between azure billing table to cmdb Virtual machine table  Create Custom report to show total Cost for a given subscription stacked by contribution from each VM  This helped customer to analyze the following things  Understand the Highest contributor to the cost for a given VM  Understand the configuration to make decision to run in Private cloud  With CI information and Tagging ( Dev/Prod) take measure using Orchestration to minimize the cost during non peak times by shutting down the machine ( incase of NonProd/Dev/Test)  Customer said he could create an orchestration flow to shut down all such VMs during the weekend to cut down costs  We explained the importance of governance policies to achieve the same in Jakarta release Identify Opportunities to Apply Governance Policies
  19. 19. © 2017 ServiceNow All Rights Reserved 19  Create custom report and e-mail to the members of the group  Cost trend for the assets  Usage trend for assets Study the Spending Nature of Individual User
  20. 20. © 2017 ServiceNow All Rights Reserved 20 Analyze the Usage Trend
  21. 21. © 2017 ServiceNow All Rights Reserved 21  This helps to understand the enterprise overall cloud adoption strategy Identify Cloud Services You Are Consuming Most
  22. 22. © 2017 ServiceNow All Rights Reserved 22 Study Data Transfer Costs Associated with Each Service
  23. 23. © 2017 ServiceNow All Rights Reserved 23 Call to Action • Enable Cloud Management Plugin on your Jakarta instance • Check out how-to videos on ServiceNow community site and ask questions • Coordinate with your solution consultant for your cloud management workshop • Get started with cloud cost visibility and control with ServiceNow
  24. 24. © 2017 ServiceNow All Rights Reserved 24 Q & A Thank you for joining us. Giri Padmanabh Liam Yu Sr. Director Engineering Sr. Product Marketing Manager ServiceNow ServiceNow

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