CLOUD INFRASTRUCTURE COSTS
Understanding and Controlling
About me
• Thomas Orozco
• Developer Advocate at Scalr
• Cloud Management company
Image Credit: Samuel Q. Green
Why talk about cost?
• Our mission is to help
enterprises drive successful
cloud adoption
• Cost-effectiveness is an
integral dimension of that
success
Image Credit: Stephen JB. Thomas
About you
• DevOps?
• IT?
• Finance?
• Other?
Image Credit: Wilson Joseph
What this talk is about
• Understanding the implications of cloud adoption from a
cost perspective
• Understanding what works, what doesn’t
Cloud: what changes?
• Developer-centric provisioning
process
• IT no longer owns the
provisioning process
• No way back
Image Credit: Tommy Lau
WHAT IS THE PROBLEM?
Cost Tracking for Cloud Resources
Two key problems
• Visibility Problem:
Understanding costs
• Saving Problem: Reducing
costs
Image Credit: Marcio Duarte
3 Key Audiences
• DevOps teams
• Enterprise IT
• Finance
Image Credit: Stephen Copinger
THE VISIBILITY PROBLEM
Why is it hard to account for usage of cloud resources
DevOps on Visibility
• Tasked with sticking to a
budget
• “How much is this going to
cost me? How do I use my
budget responsibly?”
Image Credit: Joe Harrison
Enterprise IT on Visibility
• Tasked with minimizing waste
and optimizing usage
• “How do I tell who owns this
resource?”
Image Credit: Matthew Hawdon
Finance on Visibility
• Tasked with breaking down
the cloud bill and allocating it
across business units
• “How do I tell which business
unit is responsible for these
costs?”
Image Credit: Roy Verhaag
Overall the same problem
• Understanding cloud cost requires visibility on:
– The use case
– The resources
– Their associated costs
• Neither DevOps, IT, nor Finance have that visibility
Existing Solution
• Use metadata (tags) to track
resources and link them to
their use case and cost
Image Credit: Baabullah Hasan
Tags = extra workload
• Adding tags is more work
• Processing tags is more work
Image Credit: Wayne Middleton
Tags = inherently imperfect
• People forget
• Mandatory tagging is easily
circumvented
Image Credit: Maurizio Carpani
THE SAVING PROBLEM
Why is it hard to reduce cloud costs?
Finance on Saving
• Tasked with planning budgets according to cash flows
• With visibility, finance can define budgets for
organizational units
Enterprise IT on Saving
• Tasked with enforcing that business units stay on budget
• With visibility, IT can track effective usage against
budgets, and enforce those
DevOps on Saving
• Ultimately, DevOps engineers control the usage of cloud
resources
• With visibility on their budget usage, DevOps engineers
can identify areas for improvement
Overall, the same solution
• Solving the visibility problem enables saving
THANK YOU!

Scalr cost analytics talk

  • 1.
  • 2.
    About me • ThomasOrozco • Developer Advocate at Scalr • Cloud Management company Image Credit: Samuel Q. Green
  • 3.
    Why talk aboutcost? • Our mission is to help enterprises drive successful cloud adoption • Cost-effectiveness is an integral dimension of that success Image Credit: Stephen JB. Thomas
  • 4.
    About you • DevOps? •IT? • Finance? • Other? Image Credit: Wilson Joseph
  • 5.
    What this talkis about • Understanding the implications of cloud adoption from a cost perspective • Understanding what works, what doesn’t
  • 6.
    Cloud: what changes? •Developer-centric provisioning process • IT no longer owns the provisioning process • No way back Image Credit: Tommy Lau
  • 7.
    WHAT IS THEPROBLEM? Cost Tracking for Cloud Resources
  • 8.
    Two key problems •Visibility Problem: Understanding costs • Saving Problem: Reducing costs Image Credit: Marcio Duarte
  • 9.
    3 Key Audiences •DevOps teams • Enterprise IT • Finance Image Credit: Stephen Copinger
  • 10.
    THE VISIBILITY PROBLEM Whyis it hard to account for usage of cloud resources
  • 11.
    DevOps on Visibility •Tasked with sticking to a budget • “How much is this going to cost me? How do I use my budget responsibly?” Image Credit: Joe Harrison
  • 12.
    Enterprise IT onVisibility • Tasked with minimizing waste and optimizing usage • “How do I tell who owns this resource?” Image Credit: Matthew Hawdon
  • 13.
    Finance on Visibility •Tasked with breaking down the cloud bill and allocating it across business units • “How do I tell which business unit is responsible for these costs?” Image Credit: Roy Verhaag
  • 14.
    Overall the sameproblem • Understanding cloud cost requires visibility on: – The use case – The resources – Their associated costs • Neither DevOps, IT, nor Finance have that visibility
  • 15.
    Existing Solution • Usemetadata (tags) to track resources and link them to their use case and cost Image Credit: Baabullah Hasan
  • 16.
    Tags = extraworkload • Adding tags is more work • Processing tags is more work Image Credit: Wayne Middleton
  • 17.
    Tags = inherentlyimperfect • People forget • Mandatory tagging is easily circumvented Image Credit: Maurizio Carpani
  • 18.
    THE SAVING PROBLEM Whyis it hard to reduce cloud costs?
  • 19.
    Finance on Saving •Tasked with planning budgets according to cash flows • With visibility, finance can define budgets for organizational units
  • 20.
    Enterprise IT onSaving • Tasked with enforcing that business units stay on budget • With visibility, IT can track effective usage against budgets, and enforce those
  • 21.
    DevOps on Saving •Ultimately, DevOps engineers control the usage of cloud resources • With visibility on their budget usage, DevOps engineers can identify areas for improvement
  • 22.
    Overall, the samesolution • Solving the visibility problem enables saving
  • 23.

Editor's Notes

  • #3  Booth is right across
  • #4 Cloud Management Company - Our mission is to help developers, IT and finance drive successful cloud adoption. - Cost is definitely not the only thing we help with!We’ll see that we have a case in doing so, though.
  • #9 Explain why those were not problems before
  • #10 Ask who is with each of these organizations
  • #12 DevOps folks usually are the ones in charge of provisioning resources, but they don’t get the bill, or the breakdown. In most enterprises
  • #13 The goal might be to: To ask them whether it’s safe to shut down To get them to reduce waste…
  • #17 tags are not first-class functions of cloud platforms People make mistakes, input invalid formats, input the wrong tags…
  • #18 It’s hard to enforce tagging resources. Tagging is easily circumvented.
  • #22 Inherent to the developer-centric workflow Identify resources that cost the most
  • #23 You do need a way to enforce budgets are respected once set