Shine a light on “Shadow IT”: Taking control of usage and spending in the cloud by Sharon...
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Shine a Light on Shadow IT Effective Cloud Cost Management 1 Sharon Wagner, CloudSlam ‘12
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The ease to set up a cloud deployment--done with little more than a credit card and an internet connection-- has resulted in a decentralization of IT management for many enterprises. This booming “Shadow IT” environment creates a host of management and cost issues for enterprises and usually leaves IT departments holding the bag. Very quickly, IT departments find themselves without control or even insight into the services being consumed, or even under-utilized, within their own organization. As independent units deploy in the cloud, the management and maintenance of these systems can lapse and quickly costs spiral out of control.A smart IT manager quickly realizes that he/she needs to be able to gain visibility to the entire corporate cloud environment, centralize the management of the systems and create methods to do more with streamlined resources in the cloud – or face a potentially very nasty bill for cloud services at the end of each month.For today’s IT departments to offer the best resources for the enterprise, the move to the cloud is becoming a necessity. To do this without loss of control, business and technology decision makers need to be able to see, measure and be notified on cost and consumption violations from day one. With this in place, IT’s management of cloud spending can be on budget and dynamically managed for optimal cost or performance improvements.This session will walk CIO/IT managers through the key areas to consider in developing a cloud computing insight & management system and reporting mechanisms. It will also address why it is critical for IT to play a role in cloud development and management and some methods to help avoid circumvention of IT management within a “shadow” cloud.
Transcript of Shine a light on “Shadow IT”: Taking control of usage and spending in the cloud by Sharon...
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Shine a Light on Shadow IT
Effective Cloud Cost Management
Sharon Wagner, CloudSlam ‘12
www.cloudyn.com | [email protected]
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Outline
Introduction, Cloud in Shadow IT
Cloud cost management process
Customer case study and lesson
learned
Summary, questions and answers
www.cloudyn.com | [email protected]
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About Me
Director of Product Management,
Oblicore
Sr. Principal, Cloud Connected Enterprise,
CA
Founder and CEO, Cloudyn
www.cloudyn.com | [email protected]
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Shadow IT is here to stay
“IT controls less than 50% of corporate technology
expenditures”, PwC , June 2011
“In less than three years, 35% of enterprise IT
expenditures will happen outside of the corporate IT
budget.”, Gartner, Dec 2011
Cloud vendors doing their best to increase adoptionVariety of services
Provisioning agility
Resources availability
Continuously decreasing cost
www.cloudyn.com | [email protected]
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Aligning IT to business demands
Agilit
y
Business
ITContro
lCloud
Adoption
www.cloudyn.com | [email protected] | Cloudyn Confidential and Proprietary
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Both IT and the business are:
Losing cost Control Unable to maximize
Investment
Can’t plan Capacity
Over-provisioning resources
www.cloudyn.com | [email protected]
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If you can’t beat them, join them!
Leverage your domain expertise
Know all cloud options
Find the best business terms
Streamline your cost management process
www.cloudyn.com | [email protected]
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Effective cloud cost management
Discover & Assess
Set Operational Controls
Align to Corporate Goals
Set Organizational Controls
Act, Change, Optimize
Based on feedback from key enterprises with $1M+ cloud spend annually
www.cloudyn.com | [email protected]
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Energy & Co case study and lesson learned
A World wide energy company
Jim is an IT director
Energy & Co has a significant IaaS footprint
Multiple business units
Development, testing and production
Over 100 cloud accounts, +2000 servers
Fluctuating environment
what resources belong to
which task?
What resources are
REALLY needed?
How will I explain this bill to my
boss?
www.cloudyn.com | [email protected]
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Understand your cloud resources consumption
• 32 Extra Large servers running idle for 2 months
• 3852 snapshots of a single volume
• 11 reservations with no associated instances
• 3 non-production databases running in 4.3% CPU
utilization
• 80% predicted growth in annual cost
Taking care of these reduces cost by 34%
Discover & Assess
Set Operational
Controls
Align to Corporate
Goals
Set Organizational Controls
Act, Change, Optimize
www.cloudyn.com | [email protected]
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Control resource consumption in real-time
First, set operational alerts:
Daily growth in # of instances exceeds 5%
Weekly growth in cost exceeds 5%
Unused resources
Underutilized servers, databases
Now at least there won’t be any surprisesfor Jim!
Discover & Assess
Set Operational
Controls
Align to Corporate
Goals
Set Organizational Controls
Act, Change, Optimize
www.cloudyn.com | [email protected]
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Define cost units and break-down the spending
Map cloud resources to business units
Define business units
Define resource mapping rules
Define budget structure
Define owners
Set cost and consumption views
Spending became clearer: Jim could see who spends what, where and when
Discover & Assess
Set Operational
Controls
Align to Corporate
Goals
Set Organizational Controls
Act, Change, Optimize
www.cloudyn.com | [email protected]
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Have unit owners control their costs
Set business metrics
Budget violation projection
Abnormal consumption growth
Cloud usage inefficiency
Correlate cloud cost with business activities
Now control was delegated to the unit owners, with Jim supervision
Discover & Assess
Set Operational
Controls
Align to Corporate
Goals
Set Organizational Controls
Act, Change, Optimize
www.cloudyn.com | [email protected]
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Usage-based cost and capacity optimization
Rightsizing first:
Constantly eliminate unused resources
Downscale overgrown instances
Get rid of retired storage
Price optimization to follow:
Optimally reserve instances based on usage
Reallocate resources to existing reservations
Eventually the bill dropped by ~35% !
Discover & Assess
Set Operational
Controls
Align to corporate
Goals
Set Organizational Controls
Act, Change, Optimize
www.cloudyn.com | [email protected]
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Summary
Enhance your domain expertise
Know your cloud options
Think small – avoid traditional capacity
allocation
For fine-grained control
Over-provision to the right extent
Leverage usage trends to rightsize consumption
Your environment is dynamic
Your solution should be dynamic too
