THE METHOD AND TOOL OF COST

ANALYSIS FOR CLOUD COMPUTING

XINHUI LIYING LI

TIANCHENG LIUJIE QIU

FENGCHUN WANG

Presented BySneha Arvind Mani

OUTLINE

IntroductionCalculation of Cloud TCOCalculation of Cloud Utilization CostCalculation ToolAnalysis on Balance FactorRelated WorkConclusion

INTRODUCTION This paper aims at formatting suits of metrics

and formulas for the calculation of Cloud Total Cost of Ownership (TCO) and Utilization Cost , considering the elastic feature of Cloud Infrastructure and Virtualization in Cloud

This provides a foundation for evaluating economic efficiency of Cloud and provides indications for cost optimization of Cloud.

Attainment of economic efficiency in Cloud is a two-step process: Resources must be applied in an area in which its

benefits outweighs its cost. For maximum efficiency to be achieved, resources

must be applied in a way that costs are minimal.

INTRODUCTION(2) Total Cost of Ownership (TCO) is the cost

attributed to owning and managing IT infrastructure in a business.

For Cloud, it’s not only sufficient to calculate and analyze the TCO but also the cost associated with real resources committed to a particular user or application should also be analyzed, which is the Utilization Cost.

Elastic resource utilization: Cloud adopts the architecture which can

continuously adapt to the users’ changing requirements automatically.

Current cost analysis technologies do not consider the elastic characteristics of Cloud. It mainly depends on each cost item and summary of all cash outlays.

WIDE ADOPTED VIRTUALIZATION Virtualization refers to hosting multiple

applications on a common set of servers. This allows for consolidation of application workloads on smaller number of servers.

Traditional cost calculation mainly takes physical servers as the unit to calculate server cost. With virtualization, the usage of physical server is consolidated.

Even the software usage requires calculating the needed software license by VM rather than physical server.

CALCULATION OF CLOUD TCO The items composing the cost of cloud are:

Server, Software, facilities, support and maintenance, network , power, cooling and real-estate.

With Cloud Cost Amortization model, the monthly depreciation cost is calculated for each metrics item from the initial purchase expense based on the duration over which investment is amortized.

Amortizable Rate Paramater is given by Arp = (1+0.05) * time / (30*24*Ap)Ap – Amortization period unit ( default is one month)time – Hours consumed.

CALCULATION MODEL Server Cost: In Cloud, servers are mounted in

racks and constructed into a resource pool. Calculation of TCO takes all these servers into consideration.

Software Cost : According to how software is licensed, it is divided into 3 types: Type I : Operating Systems – the license number of

this software equals to the number of virtual images applied

Type II: Application Server – the license number is calculated as the number of processors where these soft wares run.

CALCULATION MODEL(2) Type III: Management software – their license

number is calculated by the processors they manage.

Network Cost: The cost related to networking is caused by switches, NIC and cables which are used to attach physical servers to the network.

CALCULATION MODEL (3) Network cost:

Support and Maintenance Cost: This metric includes software distribution and upgrading, asset management, troubleshooting, traffic management, servers’ configuration, virus protection, disk management and performance.

CALCULATION MODEL(4)

Power Cost: Power consumption in Cloud is primarily caused by Computing Infrastructure including servers, network switches and Network Critical Physical Infrastructure, transformers, fans, ACs, pumps and humidifiers.

CALCULATION MODEL(5)

Cooling Cost: The power consumed at the datacenter is converted to heat. A Cooling Load Factor (L) is defined which represents how much power is consumed by the cooling equipment for every 1W of heat dissipation in the datacenter.

CALCULATION MODEL(6)

Facilities Cost: Facilities are not equipment but necessary for the normal running of equipments , like PDU, KVM cables. They are all wrapped into the rack.

CALCULATION MODEL(7) Real- Estate Cost : Due to the special

infrastructure required like cooling , power, the space required by a Cloud is more expensive.

Where Sspace is space taken up by all the racks under utilization.

The value of pressure confronted by unit floor cannot be beyond

CALCULATION OF CLOUD UTILIZATION COST TCO consists of all the servers in resource pool,

all facilities to support these servers. However, Cloud uses part of these servers and resources to satisfy users’ workload.

Cost of the used part of resources, changing sensitively with various work loads, is important to know the usage efficiency of given resources. This is referred to as Utilization cost.

Virtualization – Cloud providers package arbitrary user applications as sets of virtual machines. The basic unit of Cloud consumed is not the physical servers but VMs the users are applied to.

A derivation-based approach is required which calculated the Utilization Cost from input VMs without dependency on monitoring or accounting.

CALCULATION MODEL: The three-layer model to calculate utilization-cost.

Adding up all the eight costs gives the utilization cost.

CALCULATION MODEL(2) VM Density and Number of Physical Servers:

VM density is the number of VMs that can be hosted on one physical server. The number of physical servers is given by

Nvm – Number of applied VMs.

Number of Racks: If we know the space a server needs and the server number Ns, we can calculate the number of racks acquired for providing services

UTILIZATION COST Cloud providers can input derivation rules

specific to their infrastructure. There are 2 ways: Assign relationship between two different metrics

item Assign relationship between cost of two different

metrics items. All aspects of utilization cost is determined

by the physical server numbers. So if server cost increase directly, other cost will increase simultaneously.

CALCULATION TOOL: The tool presents the users with a tree of metrics

parameter. Each branch represents a cost metrics item. Each child label on the branch represents a parameter under the given cost metrics.

CALCULATION TOOL Metrics Tree for TCO calculation:

Calculation of Utilization Cost

ANALYSIS ON BALANCE FACTOR Balance Factor is used to describe the balance

extent of all cost items’ utilization and to indicate where potential bottlenecks are being developed.

When a bottleneck is discovered, we need to consider the connected utilization changes among various items to balance the bottleneck.

Serve

r

Cooling

Facility

Network

Power

Real-E

state

Softw

are

Supp

ort0

0.20.40.60.8

1Balance Factor of 0.2126

Workload

Various Cost

Uti

lizat

ion

Para

met

er

RELATED WORK Currently, there are some industrial tools for

TCO:Alinean’s tool evaluates their Data Backup

solution with focus on Data Transferring Cost.

PMTC focus on Network Deployment costSolarrcom focus on evaluation of desktop

devices.APC give series calculators for Data Center

on the energy cost and carbon footprint and power related capital.

CONCLUSION In this paper, cloud TCO is quantified with

a suite of metrics and formulas considering the characters of virtualization and elasticity

Utilization Cost leverages the metrics items defined in Cloud TCO and takes workload.

These calculation models are developed into a tool which can execute cost calculation without knowing exact data and provides a flexible way to analyze the effect of different metrics on the cost.

THANK YOU!