The document discusses the challenges and transitions in managing cloud infrastructure, emphasizing the rise of self-service hybrid clouds and the need for financial management within organizations. It highlights the importance of controlling costs, providing transparency, and enabling competitive IT services through VMware solutions. Additionally, it mentions growth metrics for Health Management Associates, underscoring the need for efficient cost management in healthcare IT.

1. Tech Preview: Business Management for Cloud
Chandra Prathuri, VMware
Matthew Ritchart, Health Management Associates
Taka Uenishi, VMware
VCM4885
#VCM4885

2. 2
What is the Cost of Cloud? Cost of VM?
Getting Permission from Scott Adams …

3. 3
What’s Changing: Rise of “Shadow IT”
IaaS
PaaS SaaS
* Source: Gartner, November 2011: “By 2015, 35% of enterprise IT expenditures
for most organizations will be managed outside the IT department's budget."

4. 4
My Challenges as Manager of Cloud Infra
2. Transition to Self Service Hybrid Cloud
1. Offer Competitive IT Infra Services in Hybrid Cloud
3. Manage Costs in Self-Service Cloud

5. 5
About HMA

6. 6
Enabling America’s Best Local Health Care
3
Enabling America’s Best Local Health Care

7. 7
Company Growth and Performance
$4,279 $4,536
$5,092
$5,804
$6,753
2008 2009 2010 2011 2012
Net Revenue(1)
(millions)
(1) Net Revenue is prior to bad debt expense
(2) Adjusted EBITDA is defined as consolidated net income before discontinued operations, net gains (losses) on sales of assets, net interest and other
income, interest expense, income taxes and depreciation and amortization. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net revenue.
Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP.
Nevertheless, Health Management believes that providing non-GAAP information such as Adjusted EBITDA is important for investors and the readers of Health
Management’s consolidated financial statements as it is commonly used as an analytical indicator within the healthcare industry and Health Management’s
debt facilities contain covenants that use Adjusted EBITDA in their calculations. Because Adjusted EBITDA is a non-GAAP measure and is thus susceptible to
varying calculations, Adjusted EBITDA, as presented, may not be directly comparable to other similarly titled measures used by other companies.
$622
$678
$733
$826
$963
2008 2009 2010 2011 2012
Adjusted EBITDA(2)
(millions)
9
Company Growth and Performance

8. 8
My Challenges as Manager of Cloud Infra
2. Transition to Self Service Hybrid Cloud
1. Offer Competitive IT Infra Services in Hybrid Cloud
3. Manage Costs in Self-Service Cloud

9. 9
Today – I am an XLS Jockey!
Creating Manual
Rate Cards
0
5,000
10,000
15,000
20,000
25,000
30,000
1 2 3 4 5
Amount
Year
Sample Impact on Expenditure
Physical
Virtual
Cost Analysis Charts

10. 1010
Took me 15 min to get this Output!
With VMware – I can get costs in 15 min!

11. 1111
Automatic Rate Card Generation
With VMware – I can get costs in 15 min!

12. 12
The Other Thing That is Changing: Customers Want Choice

13. 13
Today, Very Complex to Compare Services

14. 14
Today, Very Complex to Compare Services

15. 15
With VMW – Out of Box Analysis, Comparison

16. 1616
With VMW – Out of Box Analysis, Comparison

17. 17
With VMW – Out of Box Analysis, Comparison

18. 18
My Challenges as Manager of Cloud Infra
2. Transition to Self Service Hybrid Cloud
1. Offer Competitive IT Infra Services in Hybrid Cloud
3. Manage Costs in Self-Service Cloud

19. 19
Today – How Do I Map This Data to Business Data
• Who is Using What
Resources?
• How do I Price Self
Service Blueprints?
• How do I plan Costs,
Budgets?

20. 20
With VMW – Out of Box Organized by App, BU

21. 21
With VMW – Out of Box Organized by App, BU

22. 22
My Challenges as Manager of Cloud Infra
2. Transition to Self Service Hybrid Cloud
1. Offer Competitive IT Infra Services in Hybrid Cloud
3. Manage Costs in Self-Service Cloud

23. 23
Today – Variable Bills from Cloud Providers

24. 24
Today – Variable Bills from Cloud Providers

25. 25
With VMW – One Place for All Cloud Costs

26. 26
All Cloud Costs – Organized by BU, App

27. 2727
With VMW – IT becomes Broker of Cloud Services
Know Your Costs
 Total Cost of
Cloud
 Loaded Unit
Costs of CPU,
MEM, Storage
 Opportunities to
Optimize
Give Choice to
Consumers
 What If analysis
– Private and
Public Cloud
 Compare Costs
& Services
 Show Cost and
Usage to
Consumers
Transparency to
Business
 Showback Cost
& Usage
 Manage CapEx,
OpEx Budgets
 Broker Services
to Business

28. 28
VMware Business Management for Cloud -
Demo

29. 29
VMware Cloud Business Solutions
Head of Infrastructure
Cloud Director
Cloud Architect
Cloud/VI Admin
CIO
IT CFO/Controller
Business
Management for
Cloud
IT Financial
Management
Service Quality
Management
CapabilitiesChallengesLeaders
Compare

30. 30
Impact to IT Infrastructure
In Conclusion…
Environmental Changes Operational Challenges
It’s vital that you gain control over “demand” of Cloud infrastructure resources
Inevitable trend What if you do nothing? Are you ready?
Come to our Booth and check out the Beta!

31. 31 Confidential
Other VMware Activities Related to This Session
 HOL:
HOL-SDC-1311
VMware IT Business Management
 Group Discussions:
VCM1001-GD
IT Business Management with Chandra Prathuri
 Related Breakout Session:
OPT4732 Leveraging IT Financial Transparency to Drive
Transformation
Moscone West, Room 2011, Tuesday 27-Aug 4:00 PM

32. THANK YOU

34. Tech Preview: Business Management for Cloud
Chandra Prathuri, VMware
Matthew Ritchart, Health Management Associates
Taka Uenishi, VMware
VCM4885
#VCM4885