Controlling Your Cloud Costs

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 ManagerServiceNow ServiceNow

© 2017 ServiceNow All Rights Reserved 2© 2017 ServiceNow All Rights Reserved 2

ServiceNow Is a Fast-Growing, Global Company

~4,800 Employees

Major SitesSan 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

© 2017 ServiceNow All Rights Reserved 3

Agenda

• Business Drivers

• Solution

• Next steps

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


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


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


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


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 ManagementExtend single system of engagement to private and public clouds


Cost Visibility Across Cost-centers, Groups, Business Services


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


Certified and Standardized Service Catalog


Every Stack Tied to Cost Center, Business Service, Group & Quotas


Quota Definitions to Control Spend

Define Business Group limits


Data Center Capacity LimitsDefine maximum limits for resources within data centers


Live Demo


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


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


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


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


Analyze the Usage Trend


This helps to understand the enterprise overall cloud adoption strategy

Identify Cloud Services You Are Consuming Most


Study Data Transfer Costs Associated with Each Service


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


Q & AThank you for joining us.

Giri Padmanabh Liam YuSr. Director Engineering Sr. Product Marketing ManagerServiceNow ServiceNow

Controlling Your Cloud Costs

Technology

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