IBM SmartCloud Cost...
Transcript of IBM SmartCloud Cost...
© 2013 IBM Corporation
IBM SmartCloud Cost Management Managing the real costs of running a cloud
© 2013 IBM Corporation
Agenda
IT Pressures and Needs
Moving to a Cloud
SmartCloud Cost Management (ISCCM) – What is it?
How can SmartCloud Cost Management help
Demonstrations
Summary
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IT Departments contain many different platforms,
environments, sub-system, and users:
Costly to own, maintain, and
operate
With unique record formats and
metrics
Ill equipped to discuss services
delivered in a business context
Creating Inability to allocate IT
costs, usage, and value
IT Cost Transparency Is Needed
Complex systems obscure the real costs of doing business
Unix / Linux /
Windows
Databases &
Networks
Storage & many other
systems
Internet & E-
Mainframes
Power
Consumption
Cloud
Services
Labor
Costs
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Failure to Accurately Allocate and Distribute Costs can Lead to False Economics
How are
Applications
Associated With
Departments And
Resources?
What Costs
Need To
Be Recovered?
Receive
Recoveries
From
Departments
Determine
Utilization
Create
Department
Reports/Invoices
How Are Costs
Associated With
Applications? (ATM, Credit Card,
Commercial Loans,
Mortgages)
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IT Service Management Financial Management Model*
Budgeting and
Reviews
Cost Accounting
And Forecasting
Strategy
and Financial
Planning
Evaluating
Investments
Actual vs
Budget Tracking
And Managing
Deviations
Reporting and
Possibly
Chargeback
* itService Management Forum
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manage costs if you don’t even know who is using the resources?
allocate costs back to users?
determine if resources are being used optimally?
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But how do you …
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Here’s where we can learn a lot from a NYC taxi cab driver
When you travel to NY, do you buy a car?
– No, you rent a taxi … or pay as you go.
A lot of people rent that same taxi.
– It’s a shared environment.
How does the driver know what to charge you?
– He turns on a fare meter that calculates mileage x rate.
Correctly allocating costs for usage helps amortize the
cost of equipment and discourages free riders.
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Total Cost of Ownership Considerations
Software Network Storage
Servers
Floor Space Power
Development
/ Test
Labor
Backup
Recovery
• Looking at each of these in a vacuum can lead to
poor decision-making and investments
• Need a balanced view of today’s total costs to
better future investments
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Operational & Financial Management Transformation Roadmap
Simplified
Shared
Dynamic
Consolidate
Virtualize
Automate
Implement asset-
based costing
Manage full-
capacity licenses
Reduce
infrastructure
complexity
Improve business
resilience
(manage
fewer things
better)
Improve
operational
costs/reduce TCO
Implement usage-
based costing
Manage sub-
capacity licenses
Increased hardware
utilization
Allocate less than
physical boundary
Reduce hardware
costs
Simplify
deployments
Granular service
usage metering and
billing
Deliver automated
license management
Standardized Services
Dramatically reduce
deployment cycles
Massively scalable
Autonomic
Flexible delivery
enables new
processes and
services
Service
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Virtualization: Significant advantages / new challenges
From Dedicated Systems,
Storage, Applications . . .
. . . to Shared Virtualized
Environments and SOA
Advantage:
More simple to account for with a spreadsheet –
one machine, one workload, and one cost center
Challenges – Resources are highly
underutilized which means:
Paying more for hardware and software
Unnecessarily high energy costs
Using more real estate than required
More assets that are harder to track, manage,
and maintain
Inflexible to varying peak in demand
Data storage
Host
Servers
Advantages:
Better utilization of existing resources so
future investments can be deferred
More cost effective – hardware, software,
energy, staff, and floor space
More responsive to differing peak loads
Challenges:
How to allocate costs
Prove to the users they’re getting what
they deserve
Dilemma solved
with ISCCM!!
© 2013 IBM Corporation
When Developing Showback / Chargeback Models, Think Like A Utility Company – Allocation not Good Enough in a Shared World
Utilities are the model of a shared service chargeback
–Electric, gas, telephone, cable
Each utility bill has several components
–Use electric bill as an example
–Has data about usage (meter)
• Measured in absolute units (kWh)
–Includes fixed fees for service
• Not based on usage
–Includes delivery charges,
taxes, etc. proportional to usage
Each charge has an associated rate
–Here, the metric is the same – kWh
–The rate varies for each bill component (each service)
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© 2013 IBM Corporation
Align IT Software Spending with Business Priorities Capability
Who is consuming which IT
resources?
What is the cost of those
resources, including those that are
shared?
How should IT allocate cost for chargeback, ROI, costing analysis, and reporting/billing?
Data collectors for IT infrastructure
can review consumption across
multiple dimensions
Costing engine assigns cost to
resource usage
Costing and reporting engine
associates and report usage costs
to consumers of IT resources
All three questions help align IT spending with business priorities
What is needed to do Usage & Accounting? Three variables to the equation
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© 2013 IBM Corporation
SmartCloud Cost Management is . . .
An integral part of an organization’s management accounting and reporting system
(Shared Resources, Reporting/Invoicing, General
Ledger Integration, Product Costs, Cost Allocations,
Service Based Usage, Resource & Cost Trending,
etc.)
Supporting multiple sub-systems
(DB2, Oracle, SQL Server, CICS, Virtualization,
Energy, Web, E-Mail, Networks, Storage, Print
Servers, etc.)
Internet enabled
(Web-Based Reporting & Drill-Down and multiple outputs)
Used across multiple platforms
(Including Mainframe, Unix, Linux, Windows,
“Cloud”, etc.)
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© 2013 IBM Corporation
Analytics Collaboration Develop/Test Desktop Storage Prod Support
Blue Insight
LotusLive
Develop/ Test Cloud
Workplace Cloud
Storage Cloud
Production Cloud
180K users, 100 ported applications
Predictive modeling (SPSS) and data mgmt
85% of web conference minutes
>275M meeting minutes used in 2010
>215M for 1H2011
Server setup from 5 days to 1 hour
> 90% of new server reqs via this cloud
5000+ instances created
2,000 users China Develop Lab
200 user pilot SBDC on the IBM Cloud
File storage cloud used by > 130K users & applications
Block storage cloud w/ automated tiering w/ 50% reduction $/GB
Private instance up
First applications migrated and operating
Refining platform, expanding use
Let’s take a look at a typical situation where users are looking for estimates and providers are looking to track usage and
allocate costs … Video Demonstration
SaaS SaaS IaaS IaaS IaaS IaaS
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© 2013 IBM Corporation 15
IBM SmartCloud Cost Management
Unix/
Linux/
IBM i
PowerVM
VMware
Windows
z/VM
KVM
External
Feeds
Network Flow NetFlow, IPFIX,
jFlow, cflowd, and
NetStream.
Rate
Table
ISCCM
Admin
Server
Client
File
Costed
Data
Web-based
Invoices File exports to
GL, email, etc.
TDS for
z/OS
© 2013 IBM Corporation
Use IBM SmartCloud Cost Management Collectors on Any System
Jobs Processed
Steps Processed
CPU Time
Equation Time
…
Mainframe Space Allocated
Space Used
Space Wasted
Migrated Datasets
…
Storage Elapsed Time
CPU Time
Transactions
Input Messages
…
CICS/IMS
Partial List
Goal:
ANY
usage file
from ANY
system!
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CPU – ucpu, scpu
Seat Time
Images Activated
Software
Packages
…
Unix/Linux POWERVM
VMware
z/VM
KVM
…
Other OSs
Elapsed Time
CPU Time
Kernal CPU Time
User CPU Time
…
Windows
Microsoft
Exchange
Lotus Notes
Sendmail
E-Mail Systems WebSphere HTTP
Apache
Microsoft IIS
…
Internet DB2
Oracle
SQL Server
Sybase
…
Databases
Don’t see what you need here, use the Universal Collector to meet your custom needs
© 2013 IBM Corporation
Analytics Collaboration Develop/Test Desktop Storage Prod Support
Blue Insight
LotusLive
Develop/ Test Cloud
Workplace Cloud
Storage Cloud
Production Cloud
180K users, 100 ported applications
Predictive modeling (SPSS) and data mgmt
85% of web conference minutes
>275M meeting minutes used in 2010
>215M for 1H2011
Server setup from 5 days to 1 hour
> 90% of new server reqs via this cloud
5000+ instances created
2,000 users China Develop Lab
200 user pilot SBDC on the IBM Cloud
File storage cloud used by > 130K users & applications
Block storage cloud w/ automated tiering w/ 50% reduction $/GB
Private instance up
First applications migrated and operating
Refining platform, expanding use
IBM has established a base of cloud computing which it continues to expand and mature … Live Demonstration
IBM’s internal Cloud implementations marry cloud's cost saving and
transformation opportunities with appropriate workloads
SaaS SaaS IaaS IaaS IaaS IaaS
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Live demonstration: DST Cloud Usage and Metering Solution
Internal IBM cloud, self-provisioning environment
Supports cloud usage data from 4 World-wide TivSAM Cloud Portals (~1500 virtual servers)
Metering and charging for: – Base charges – CPU, memory, disk storage hour charges – Backup Image Storage (Images saved via TSAM self-service portal ) – DST Network Security Zone charges by Platform and OS – DST Support Services (WebSphere, DB2, MQ, his) – License charges based on OS deployed
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Management and Administration
Availability and Performance
Security and Compliance
Usage and Accounting
Understand Cloud service and resource usage, effectively managing against financial metrics
Holistically see and understand quality of service metrics and continuously improve
Protect Cloud services and data from malicious threats and maintain compliance mandates
Deliver a flexible, automated Cloud service delivery and management command center
Infrastructure platform
Improve utilization, cost and performance of server, storage and networking assets
IBM SmartCloud Foundation
- provides solutions to simplify and accelerate your cloud journey
© 2013 IBM Corporation
Some of the over 300 customers
Large healthcare insurer
CICS/DB2/Batch/TSO & normalization between 2 System zs. Rolled out Unix and Windows. Over 168 Unix and 300 Windows Servers.
Replaced 2 homegrown systems after merger. Corp. finance is the user and owner of the system. Wanted federated auditabilty. ISCCM only product to meet all RFP requirements.
Insurance and Financial Product Broker z/OS, Linux for System z & Unix/Novell/Windows. Primavera importing for labor accounting. Inventory
information, SAN, and Telcom.
Doing memo billing now and will move to chargeback in the future.
Large aerospace manufacturer Both z/OS & distributed. Bill $18-20M per month across 5,000 cost centers. 40K pieces of hardware. Do labor,
WAN, assessments, and project costs. Feeding SAP GL and using Web reporting.
Replaced homegrown system.
State government z/OS, Telcom, Unix, Windows, labor. Oracle, SQL Server, & Exchange.
Wanted to replace multiple billing systems with integrated system and meet government audit requirement.
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Business Background
Solution Overview
• ING is a large world-wide operating financial institution
offering clients banking, insurance and asset-
management services (HQ in Amsterdam, Netherlands),
~110,000 employees
• ING needs to drive down IT costs dramatically and
intensively improve their time to deliver new IT
environments to the business
ING is in the process of transforming towards a
“new world” IT landscape (besides their legacy
“old world” IT), in which they can benefit from the
advantage of a private cloud concept
• Automated delivery of standardized “stacks” (OS up to
app, single VM) and “solutions” (distributed environment,
multiple stacks), for development, test, acceptance and
production purposes
• Tivoli Service Automation Manager-based private cloud
implementation, management across System p and x86
(VMware vSphere), additional platforms will be added
• Restructuring of existing IT delivery / mgmt processes & IT
landscape to enable large efficiency gain. New processes
implemented in TSAM mgmt plans
• Integrates with ING-internal mgmt systems where needed
and appropriate (e.g. ING Corporate Directory Server &
Identity Mgmt System, agents to integrate with backup &
monitoring get deployed & configured automatically)
En
d t
o E
nd
Servic
e M
an
ag
em
en
t
TADDM
TSAM v7.2 TUAMTivoliMonitoring
Web 2
.0
User
Inte
rface
UsageReports
BillingReports
Tivoli Service Automation Layer
Automate process of instantiating and managing a distributed IT environment.
Workloads
Service measurement Service reporting Usage accounting Auditing and controls
BillingReports
Virtualized Infrastructure Layer
Virtualized resources Virtualized aggregation Physical infrastructure
VM Control
Transaction
Processing
and Database
Technology
Scale
High Transaction Rates
High Quality of Service
Handle Peak Workloads
Resiliency and Security
Analytics and
High Performance
Computing
Technology
Compute intensive
High I/O Bandwidth
High Memory Bandwidth
Floating point
Scale out Capable
Web, Collaboration
and Infrastructure
Technology
Highly Threaded
Throughput-oriented
Scale Out Capable
Lower Quality of Service
Business
Applications
Technology
Scale
High Quality of Service
Large Memory Footprint
Responsive Infrastructure
TPMProvisioning
Mgr
Service AutomationTemplates
ServiceRequest Mgr
ImageLibrary
Work-flows
ServiceAutomation
Mgr
Tivoli Process Automation EngineOrchestration workflows
System p / SUN
Storage Network
Hypervisor(PowerVM)
HMC NIMSystem z
Storage Network
HMC
VM
Part
itio
n
VM
Part
itio
n
Hypervisor(zVM)
VM
Part
itio
n
VM
Part
itio
n
Storage(Vmax)
Network
Hypervisor(vSphere)
VM
Part
itio
n
VM
PArt
itio
n
Storage Network
Hypervisor (KVM, VMware, Xen)
… VM
x86
VM
Cloud Business Benefit
• Large efficiency improvement in time and cost to
deliver new IT environments
• Massively improved predictability (regarding time to
deliver new environments and future availability of
required IT capacity, enabled by reservation)
• Visibility into where resources are allocated to
• Improved customer experience (i.e. quality of
service) through standardisation and increased
agility.
• Transparent cross-charging ability for provided IT
services
© 2013 IBM Corporation
When running a business, nothing matters more than knowing how
much something costs.
Increase Client (Business Units) Satisfaction
– Real Usage = Accurate Reporting
– Accountability = Improved services
– Alignment between Business and IT costs
Lower Infrastructure Cost
– Reduced server sprawl
– Higher utilization
– Rationalization of resources
Continued Infrastructure Improvement -
understanding total costs of ownership and
operation can lead to:
– Improved managing of costs
– Usage comparisons can lead to more
effective investments You can’t manage what you don’t
measure!
© 2013 IBM Corporation
Thank you
IBM SmartCloud Cost Management Home Page:
http://www-01.ibm.com/software/tivoli/products/smartcloud-cost-mgmt
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