IBM SmartCloud Cost...

© 2013 IBM Corporation

IBM SmartCloud Cost Management Managing the real costs of running a cloud


Agenda

IT Pressures and Needs

Moving to a Cloud

SmartCloud Cost Management (ISCCM) – What is it?

How can SmartCloud Cost Management help

Demonstrations

Summary


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-

Mail

Mainframes

Power

Consumption

Cloud

Services

Labor

Costs


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)


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


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?

6

But how do you …


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.


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

© 2013 IBM Corporation 9

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


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!!


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)

11


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

12


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.)

13


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

14


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


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!

16

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


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

17


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


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


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.

20


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


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!


Thank you

IBM SmartCloud Cost Management Home Page:

http://www-01.ibm.com/software/tivoli/products/smartcloud-cost-mgmt

23

IBM SmartCloud Cost...

Documents

Transcript of IBM SmartCloud Cost...