VMware vCenter QuickStart ProgramWeek 3: Chargeback Install and Configure

Tuesdays, 2-3pm CST or Thursdays, 3-4pm CST

Scott Archer and Ed Meanan, VMware Subject Matter Experts

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Class Schedule and Agenda

Date Topic Agenda

March 16/18 Introduction Program and Product Overview

March 23/25 vCenter CapacityIQ Install and product overview, resource

utilization trends and forecasting

March 30/

April 1

vCenter Chargeback Install and configuration, cost models and

hierarchies

April 6/8 vCenter AppSpeed Install and configuration, monitoring of multi-April 6/8 vCenter AppSpeed Install and configuration, monitoring of multi-

tier applications

April 13/15 AppSpeed (Advanced) Setting up SLAs, Monitoring, Troubleshooting

Methodologies

April 20/22 Chargeback (Advanced) Advanced cost models, scheduled reports,

custom hierarchies

April 27/29 CapacityIQ (Advanced) Identify oversized and unused VMs, capacity

Trending and planning

May 4/6 Conclusion Q&A with the Experts

Agenda

• Business Need for Cost Modeling in Virtualized Envi ronments

• vCenter Chargeback Component Overview

• vCenter Chargeback Product Overview

• Product Installation and Configuration

• Establishing a Fixed Cost Model

• Product Walkthrough with Basic Cost Model Settings

• Summary and Next Steps

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• Summary and Next Steps

Please enter questions in the Webex Chat window!

At the end of today’s presentation you will be able to:

• Explain the business need and key benefits of cost modeling of virtual infrastructure

• Install and configure vCenter Chargeback using step-by-step installation guide

• Create a cost model, cost template, fixed costs, and reports

• Avoid and solve common installation issues

• Perform post installation setup and validation

• Use Chargeback Calculator to prepare cost figures for the Chargeback models

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• Get ready for the Chargeback Advanced Class

NOTE: Please do NOT try to deploy/configure your own environment during this session. This entire slide deck will be available for you to follow as you complete your homework assignment. The 1 hour time allotment does not permit us to cover an installation process that includes progress bars.

Business Need for Cost Accounting in Virtualized Environments

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Reasons for Cost Modeling and Transparency

Run IT as a business: • Control Costs

� Raise cost visibility and accountability

� Recover costs

• Change User Behavior

� Align IT demands with business demands

� Creates appropriate disincentives

• Management and Decision Support

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• Management and Decision Support

� Facilitate better decision making

“Show back before you Charge back!”

Shared Infrastructure Requires New Accounting Model

Physical Model • New application = new hardware

• Business owner’s budget covers hardware expenses

• Business owns the hardware

Virtualization Model• New application = virtual machine(s)

• Hardware already available through internal cloud

• IT owns the hardware; makes it available to the business

1 Server : 1 App 1 Server : Many Apps

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1 Server : 1 App 1 Server : Many Apps

Why Is A New Model Needed?

What has changed? IT still needs the ability to:

New virtualization paradigm Monitor and control server deployments

Ease of VM provisioning makes it simple to deploy new

machines

Create accountability, as sprawl can occur

Virtual machines are cheaper than physical machines but are

Manage IT priorities by using costs to influence customer

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than physical machines but are not free

costs to influence customer behavior

“Server virtualization and the virtual machine (VM) sprawl it's creating will forc e most IT organizations to re-evaluate their chargeback posit ions.”

“The speed and flexibility of virtualization makes some form of chargeback mandatory ; otherwise, demand could skyrocket and more low-priority workloads could be deployed that don’t

justify their costs.”

– Gartner, 2008

vCenter Chargeback

Benefits

• Improve Resource Utilization : By associating costs to VMs many of the “free” VMs will go away, freeing up resources for higher priorities

• Optimization of Budgets : Business units can

Account, monitor, and report on costs associated with your virtual infrastructure

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• Optimization of Budgets : Business units can understand how much they are paying for resources and how much goes to unused, allowing them to optimize resource consumption & costs

Key Features

• Fixed, allocation, and utilization based costing

• Charge different amounts for tiers of infrastructure

• Schedule reports & email results

Why VMware vCenter Chargeback?

• Fits into the datacenter cloud and integrates with vCenter family of management products; Not a point solution

• Supports customers at all levels of chargeback maturity; 3 tiers of costing models (fixed, allocation, utilization)

• Tightly integrated with underlying VMware Virtual infrastructure; both user interface and more importantly advance features

• Scalable and Enterprise-Ready Architecture; developed and tested against both small and very large scale and complex virtual environments

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small and very large scale and complex virtual environments

• Ensured by being part of VMware; customers can be assured of continued support, enhancements to the product, and tight integration with the vCenter family of management solutions.

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VCENTER Chargeback

Component Overview

vCenter Chargeback

vCenter Chargeback with vSphere/VI Architecture

VMware vSphere/VI

ESX/ESXi HostsvCenter Chargeback Server

� Chargeback data collector

vSphere or VI Client

� vCenter Chargeback plug-in

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vCenter Server

vSphere or VI ClientvCenter Database

LDAP Server

SMTP Server

� Chargeback data collector

vCenterChargeback

Web InterfacevCenter Chargeback

Database

vCenter Chargeback Components

vCenter Chargeback Server• Provides logical view of vCenter hierarchy as specified by users

� Replicates vCenter hierarchy as Chargeback hierarchy

� Chargeback hierarchy can be customized

• Generates vCenter Chargeback cost reports using information from Chargeback database

• Uses LDAP server for user management

� Local users or users defined in Windows Active Directory

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� Local users or users defined in Windows Active Directory

• Connects to SMTP server for email report deliveryvCenter Chargeback Server

LDAP Server

SMTP Server

vCenter Chargeback

Database

� Chargeback data collector

vCenter Chargeback Components

vCenter Chargeback Data Collector• Connects with vCenter Server and vCenter database

� Obtains vCenter inventory from vCenter Server

• Service that polls vCenter database information and populates the vCenter Chargeback database via synchronization jobs

� vCenter inventory (inventory information)

� Statistics (resource utilization)

� Storage (disk usage)

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� Storage (disk usage)

vCenter Server

vCenter DatabasevCenter

Chargeback Database

vCenter Chargeback data collector

vCenter Chargeback Database

• Stores vCenter Chargeback-specific information

� Chargeback hierarchy

� Users and roles

� Cost models

� Configuration settings

• Must be created prior to vCenter Chargeback installation

� Installation references existing database

� Installation only creates database tables

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� Single instance

• Supported platforms

� MS SQL Server 2005 or 2008 (Standard or Enterprise)

� Oracle 10g or 11g (Standard or Enterprise)

- NOTE: For Oracle systems, you must configure the database to use the Unicode (AL32UTF8) character set to support the following:

- Deploying the Chargeback database in a non-english environment

- Synchronize the Chargeback database with a vCenter database that contains non-english data

vCenter Chargeback Database

vCenter Chargeback Components

vCenter Chargeback Web Interface• Web browser-based interface for users and administrators

• Users are separate from VI/vSphere Client users

vCenter Chargeback vSphere/VI Client Plug-in• Limited vCenter Chargeback administration

� Chargeback hierarchy is replicated from vCenter hierarchy

� Custom hierarchy cannot be created using vSphere/VI Client Plug-in

- Must use vCenter Chargeback Web interface

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- Must use vCenter Chargeback Web interface

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VCENTER Chargeback

Product Overview

Chargeback Hierarchy

• Flexible model for determining cost accounting structure

� Cost Centers, Organizations, Business Units, VM Types, etc

• Single chargeback hierarchy spans

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• Single chargeback hierarchy spans multiple vCenters for enterprise-wide management

• Hierarchy model provides the basis for determining costing structures and delivery reports

Drag-n-drop

Cost Accounting

• Base rates define costs associated with tracked metering elements

• Costing rates can be applied to different costing models at run-time

• Disable metering elements not needed

Metering Element Cost per Hour (Examples)

CPU – GHz Used $ .30

Memory – GB Used $ .64

Disk – GB Used $ .15

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neededDisk I/O – GB used $ .05

Network I/O – GB used $ 0.0

VCPU - Count $0.0

Not sure what your costs are?

Use the VMware cost model calculator –Refer to Cost Calculator

Multiple Rate Factors

• Multiple rates can be added to account for use of higher cost storage, servers, etc.

• Distinguish between costs of development vs. production systems

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• Increase rates to account for additional services such as backup, disaster recovery, etc

Metering Element Cost per Hour

(Examples)

Multiple Rate

CPU – GHz Used $ .30 1.5

Memory – GB Used $ .64 1.8

Disk – GB Used $ .15 2.0

Disk I/O – GB used $ .05 1.4

Network I/O – GB used $ 0.0 0

Applying Fixed Costs

• Add fixed costs to the hierarchy to account for non-compute attributes

• Automatically propagate costs down the organization structure or apply directly at the VM level

• Ability to add any number of fixed

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Software Licenses

Power/Cooling People Custom Fixed Costs

• Ability to add any number of fixed costs

Production VM

Cost Templates

• Simplify the process of adding costs for VM’s in a consistent way

• Combines a combination of multiple rates and fixed costs into a single template

• Create any number of cost

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Fixed Cost per VM

Real Estate = $20

HA Enabled = $10

Software = $200

Power = $3

Custom Fixed Costs

Metering Element Multiple Rate

CPU – GHz Used 1.5

Memory – GB Used 1.8

Disk – GB Used 2.0

Disk I/O – GB used 1.4

Network I/O – GB used 0

• Create any number of cost templates to address different VM costing plans

Reporting & Billing

• Build reports at any level:

� High level (organization)

� Low level (per VM w/details)

• Reports can be customized with headers/footers, icons, etc to fit company look-n-feel

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company look-n-feel

• Scheduled reports can be sent as PDF to email recipients or made available through Web UI

Chargeback Roles and User Interfaces

VI Client Plug-in Web Console

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• Consistent look-n-feel for VI administrator ease of use

• Integrated capabilities for configuring costing model & viewing reports

• Data center wide cost reporting across VC instances

• Delegated report access to non-VI Administrators

• Integrated permissions model

Summarizing vCenter Chargeback

Without vCenter Chargeback With vCenter Chargeback

� Difficult to understand who is using what

� Perception that VMs are “free” resources leads to VM

sprawl, lack of cost control, and possible resource

shortage due to shared infrastructure

� Lack of visibility leads to potentially unfair resource

budgeting

� Understand how resources are allocated and used by

whom

� Provide disincentives to waste resources and control VM

sprawl

� Provide fairness in resource budgeting through cost

benefit analysis

� Recover costs

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� Recover costs

� Resource visibility bound to vCenter inventory hierarchy � Custom chargeback hierarchy offers flexibility in

organizing vCenter objects when building cost models

and reporting

� Resource usage visibility only

� No easy way to associate costs to vCenter resources

� Associate costs with vCenter resources

� Link resource usage with resource costs

� Manual process for utilization reporting � Automated report generation

� Chargeback billing options

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VCENTER ChargebackInstallation and Base Configuration

Installing the vCenter Chargeback Environment

Before Installing vCenter Chargeback• Create a vCenter Chargeback Database and Database User

• Set a Static IP Address on the Machine

• Review the pre-install Checklist

First-Time Installation• When you install the product for the first time, the installer will do the following:

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� Connect to the Chargeback database and create a schema for the application data.

� Install the vCenter Chargeback application

� Install the Load Balancer, which will receive and route all user request to the application.

� Installs the data collector, which synchronizes the vCenter Chargeback database with the vCenter Server databases.

Installing the vCenter Chargeback Environment

Refer to the vCenter Chargeback Quickstart Series – Chargeback Basic Setup Guide for the database configuration and vCenter Chargeback installation and configuration, includin g SMTP and LDAP settings.

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LDAP settings.

Common Issue #1

• During the Installation of Chargeback 1.0.1, you select Windows Authentication and enter a valid windows username and password. The “Test Connection” is successful, but on clicking Next , you get the following error :

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Common Issue #1 – Solution

• The Windows Username entered, does not have the “Log on as a Service ” Permission.

• This can be resolved by running :

� Start -> Programs -> Administrative Tools -> Local Security Policy-> Local Policies -> User Right Assignment

� Click Properties of Log on as a service

� Add User or Group (Add the user)

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Common Issue #2

• When trying to install VMware vCenter Chargeback, at the Database Configuration screen, you clicked on the Test Connection button and got the following error :

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Common Issue #2 – Solution

• Chargeback 1.0 uses JDBC to connect to the Chargeback Database. The JDBC Drivers are shipped with the Chargeback Application. This can happen when

� You run the vCenter-CB.exe file from a location that does not contain the sqljdbc_2.0.1803.100_enu folder

� You run the vCenter-CB.exe file from a UNC path (even if the sqljdbc_2.0.1803.100_enu folder is present)

• When you extract the vCenter-CB.exe from the downloaded zip file, there should also be a folder called sqljdbc_2.0.1803.100_enu at the same folder

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should also be a folder called sqljdbc_2.0.1803.100_enu at the same folder level

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VCENTER ChargebackWorking with Chargeback

Configuring a Fixed Cost Model

In this section, we will walkthrough setting up Cha rgeback in a Fixed Cost model. We will work on:

• Creating simple synchronized hierarchy

• Creating a cost model

• Attaching a cost model

• Adding and Distributing Fixed Costs

• Generating Reports

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• Generating Reports

Logon to the Web Interface

Launch the Chargeback Homepage

And logon with the credentials you created during s etup

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Getting Started

Basic Tasks• The Basic tasks will list in order what you should do when ready to work with

chargeback

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Adding your vCenter Server(s)

vCenter Server

• Two Modes (no option to change)

• Hosts/Clusters

• VM’s and Templates

• Recommended best practice: Organize

VM’s in vCenter “VM’s and Templates” view

then do a synchronized hierarchy – that way

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VM’s are already in the proper folder

• Alternatively, can create custom hierarchy

and use simple drag/drop method to create

Chargeback hierarchy. This dictates a

separately managed chargeback hierarchy

• If you intend to use a synchronized

hierarchy, it is important to select the proper

view when adding a vCenter server!

Creating a vCenter Synchronized Hierarchy

Create Hierarchy• Three types

• Custom

• Synchronized with vCenter

• Imported from a .csv file

• We will be working with a synchronized vCenter hierarchy

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Manage Hierarchy Screen

Expand your hierarchy to see that it mirrors your v Center hierarchy

Note – the hierarchy pictured here is in hosts and clusters view. Also – you do not need to

worry for this weeks exercise about the structure of your hierarchy – we will help you in the

advanced session with customized hierarchies more suitable for Chargeback.

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Creating your Cost Model

Cost Model• Defines your billing policy and base

rates.

• Is the basis for chargeback

General Tab• Provide a descriptive Name

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• Provide a description of the cost model

Creating your Cost Model

Billing Policy• Defines how you are going to bill for

a given time period

• Can define multiple billing policies in a single cost model covering different time periods

Options

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Options• There are many, but all are

based on

• Fixed Cost (select this)

• Actual Usage

• Reservation/Allocation based

Creating your Cost Model

Base Rates• Are used to form the basis of charges

on an entity

• Are considered PER HOUR charges –meaning you must convert your daily, weekly, or monthly charges to per hour before you input them

• If you are doing just Fixed Cost charges, base rates will not apply

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charges, base rates will not apply

• For this session, you can leave them at the defaults

Adding Fixed Costs

Fixed Costs• Can be defined both globally (here) and as well local to specific entities

• We will create a few fixed costs globally so we can use them later

• The below example is for the OS License for a Windows Server

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Creating Cost Templates (Optional)

Cost Templates• Provide a method of associating billing rates with a specific business unit (for example)

that are different from the cost model base rates

• Provide an easy way to associate global or local fixed costs that are specific to a particular entity (business unit, department, etc)

• NOTE: Rate factors will not be used in the basic setup

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Configuring Cost (Associating Cost with Entities)

Configuring Cost• Once your cost model is setup, including your base rates, fixed costs, and any associated

cost templates, you will associate them with specific entities in the chargeback hierarchy to enable billing / reporting

• To do this, you go to the Configure Cost tab, expand your hierarchy, select the proper entity, and click the Edit Entity Cost Configuration button

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Configuring Cost (Associating Cost with Entities)

Configuring Cost• Select a cost

model, duration, optionally a template, and then add your fixed costs

• If you selected a

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• If you selected a parent entity with VM’s, for fixed costs – check the “distribute” box to propagate this cost structure to each VM

Configuring Cost (Associating Cost with Entities)

Configuring Cost• Once you have completed configuring cost for your entity, click the View Entity Cost

Configuration to ensure it applied correctly.

• Be sure you select the proper period to view, as different cost configurations might apply for different billing periods.

• The example below begins on 3/1/2010 and never ends

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Reporting

Basic Fixed Cost Reporting• From the reports tab, you will be able to right click an entity and create an ad-hoc report,

or a new report you wish to schedule

• We will be simply creating an ad-hoc report this week just to see what type of information we have available

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Reporting

Basic Fixed Cost Reporting• From the reports tab, you will be able to

right click an entity and create an ad-hoc report, or a new report you wish to schedule

• We will be simply creating an ad-hoc report this week just to see what type of information we have available

•

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• Be sure to select the correct cost model each time you setup a report (you will overlook this at least once!)

• Be sure to enter effective dates for this report (start with the day on which you completed the chargeback installation)

Reporting

Basic Fixed Cost Reporting• On the cost info tab, you select the

various attributes that should be included in your report.

• Since we are only interested in Fixed Costs, we would normally exclude other attributes because they are irrelevant, but we will not do that here so we can see how they appear on the report

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see how they appear on the report

• Be sure, however, that the option to show fixed cost in report check box is selected, otherwise your report will return $0

• Click Generate Report

Fixed Cost Report

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Fixed Cost Report Cont’d

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VCENTER ChargebackSummary and Next Steps

Summary – Key Points of Contact

VMware System Engineers (SE)• For any problem related to homework assignments, please contact your local

VMware System Engineer (SE).

• Your SE will engage the Subject Matter Experts and Support as necessary.

vCenter Quickstart Community Site• http://www.vmware.com/go/vcenter-quickstart

•

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• All resources published here – Download the Chargeback Cost Calculator

• Discussion threads for issues, questions, etc.

• Peer to peer networking

Week 3 – Chargeback Homework

Install and configure chargeback• Leverage the resources that will be published on the vCenter Quickstart Community site

Create a vCenter Synchronized Chargeback Hierarchy• Remember to select the proper view when you add vCenter

Create a Cost Model and one or more fixed costs• Remember, we are just interested in Fixed cost models at this point. We will get into

Allocation and Utilization based models in the advanced class

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Optionally create a cost template• If you have a specific entity you can target one or more additional fixed costs for

Associate cost models with parent and/or child enti ties• Run reports (best to choose a single entity first and run a report with all data so you can

familiarize yourself with the results

Experiment with other models (optional)• Remember to select the proper view when you add vCenter

Thank You

Q&A

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