Speakers: Nick Kephart - Product Marketing Manager, RightScale Baliey Caldwell - VP Business Development, RightScale We’ll discuss the cloud technology landscape and how RightScale fits in to manage Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). This session will clarify cloud benefits, cloud challenges, and how cloud management can drive agility, cost, and time savings. You’ll leave with a checklist of how to quantify the business case for cloud management.

1. april25-26
sanfrancisco
cloud success starts here
The Business Case for
Cloud Management
Nick Kephart, Product Marketing Manager

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Roadmap
• A Tale of Two Clouds
• Benefits Revisited
• Challenges Explained
• Why Cloud Management
• A Measurement Framework

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A Tale of Two Clouds

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Benefits Revisited
Production model: Pooled
Delivery model: Network & API accessible
Service model: On-demand self-service
Usage model: Elastic resources
Billing model: Metered pay-per-use

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Modular building blocks
Multi-tenant, high density
Purpose-built systems
Single-tenant, low density
Pooled

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Network and API Accessible
Designed for networked access
Programmatic and extensible
Designed for isolation
Monolithic

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On-Demand Self-Service
Focus on wait, throughput
Decentralized
Focus on service level
Centrally controlled

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Elastic Scale
‘Infinitely’ scalable
Sized to current use
Capacity-bound
Sized to peaks

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Metered Pay-Per-Use
Opex
Allocation based on usage
Capex + Maintenance
Allocation based on forecast

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Accidental Cloud Tourists
Sign up,
launch servers,
sit back…

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Challenges Explained
Production model: Consistency
Delivery model: Security
Service model: Waste and inefficiency
Usage model: Automation
Billing model: Planning and tracking

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Pooled
Consistent performance & reliability
Consistent utilization

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Network and API Accessible
Security outside the private
network
Heterogeneous APIs and behaviors

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On-Demand Self Service
Simple, flexible ordering
Complex merchandising and
procurement
Self-service deprovisioning?

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Elastic Scale
Architectural rework
Dynamic configuration
Integrated monitors and orchestration

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Metered Pay-Per-Use
Budgeting
Chargeback
Purchase options

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Why
Cloud
Management?

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Our View of Cloud Management
A framework of tools to solve cloud challenges and increase your
ability to enjoy cloud benefits
Consistency and reliability of shared, commodity resources
Secure access to a variety of remote, networked resources
Self-service accessibility of an approved configuration menu
Elastic, instantaneous scalability driven by automation
Usage transparency and optimization

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The Core Cloud Management Toolset
• Resource management
• Deployment-level
• Governance
• Policy management
• Identity and access management
• Usage and cost management
• Configuration
• Configuration management
• Service catalog
• License management
• Automation
• Resource monitoring and alerting
• Automated scaling and deployment orchestration

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Delivered as a Platform
A platform that delivers these necessary tools:
• Hosted to improve service, speed of innovation, and cost
• Abstracted to cover leading, changing cloud technologies

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What Does This Mean for Your
Business?

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What Does This Mean for Your Business?
Combat complexity and stay organized

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What Does This Mean for Your Business?
Respond quickly to customer and market demands

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What Does This Mean for Your Business?
Spend less time firefighting

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What Does This Mean for Your Business?
Keep tabs on what’s
happening

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What Does This Mean for Your Business?
Stay flexible and portable

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What Does This Mean for Your Business?
Focus on your core competencies

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What Does This Mean for Your Business?
Combat complexity and stay organized
Respond quickly to customer and market demands
Spend less time firefighting
Keep tabs on what’s happening
Stay flexible and portable
Focus on your core competencies

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A Measurement Framework

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A Measurement Framework
1 Determine your cloud success criteria

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Step 1: Determine Cloud Success Criteria
• Efficiency
• Overhead
• Infrastructure spend
• Speed
• Provisioning
• Reliability
• Uptime
• Mean time to recovery
• Integration
• With config mgmt, monitoring, orchestration, directory services
• With existing processes
• Portability

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Case Study: Pharma Cloud POC

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Case Study: Success Criteria
 Unified administration and monitoring of services across
clouds
 Enhanced data portability and storage capabilities
 Abstract cloud images that are compatible with any cloud
provider

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Case Study: Success Criteria
 Reduced development costs when migrating across cloud
providers
• Cost avoidance – 50%
• Cycle time reduction – 50-70%
 Reduced overhead costs for system administration and
monitoring of cloud based applications
• Cycle time reduction – 50-70%
• Cost avoidance – 50%
• Employee productivity + 30%

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A Measurement Framework
1 Determine your cloud success criteria
2 Apply benchmarks or measure your own

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Cost Savings Means Admin Efficiency
Server-to-admin ratio is an
indicator of admin costs
• Inefficient operations as low
as 20:1
• Above average ratio 150:1
(enterprises typically 70-140)
• Best practices over 2,000:1
(some customers achieve this)
Savings on admin costs of
easily 50%
Architectural
Engineering
Total
8%
Deployment
Management
Total
31%
Incident
Management
Total
20%
Problem
Engineering
Total
10%
Overhead
Total
11%
Requests
Total
6%
Software
Development
Total
7%
Site
Management
Total
7%

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Step 2: Benchmarks
• Collect:
• Development Time
• Effort Time
• Compute Time
• Cycle Time
• Calculate:
• Development Costs
• Labor Costs
• Overhead Costs

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Case Study: Measured Benchmarks
0:00:00
0:28:48
0:57:36
1:26:24
1:55:12
2:24:00
2:52:48
Cycle Time Development Time Effort Time
AmountofTime
Measures
Portability of a Hadoop Application
Baseline (Avg)
Experiment (Avg)
88% Decrease
87% Decrease
Scenario: A Hadoop application is being used on a certain cloud provider. It is decided that
another provider will work better for the business needs of the team and the Hadoop
application needs to be migrated.

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Case Study: Measured Benchmarks
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0:07:12
0:14:24
0:21:36
0:28:48
0:36:00
Cycle Time Effort Time Compute Time
AmountofTime
Measures
Managing Multiple Instances
52%
Decrease
36%
Decrease
Scenario: 5 applications are being developed to ensure best performance, the applications
are being built in each provider. Once the servers are built it is decided to terminate a
server from each cloud provider. It is now necessary to reboot server, start a server and
stop a server from each provider.

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Case Study: Measured Benchmarks
0:00:00
0:14:24
0:28:48
0:43:12
0:57:36
1:12:00
1:26:24
1:40:48
Development
Time
Cycle Time Effort Time Compute Time
AmountofTime
Measures
Creating/Destroying Instances
Baseline
(Avg)
Experiment
(Avg)
90%
Decrease
64%
Decrease
36%
Decrease
Scenario: 5 applications are being developed to ensure best performance, the applications
are being built in each provider. Once the servers are built it is decided to terminate a
server from each cloud provider. It is now necessary to reboot server, start a server and
stop a server from each provider.

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A Measurement Framework
1 Determine your cloud success criteria
2 Apply benchmarks or measure your own
3 Weigh results versus alternatives

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Step 3: Weigh Results versus Alternatives
• What is your comparison set?
• Cloud provider console
• Build your own tools
• Manual processes

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Case Study: Comparison to Cloud Provider
Measure Difference % Change
Development Costs $ (137.92) -88%
Overhead Costs $ (157.29) -84%
Labor Costs $ (150.83) -87%
100 Applications
$13,732 Savings for Development Costs
$15,083 Savings for Labor Costs

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Step 3: Achieved with RightScale
• IT Productivity Gains (Savings over using cloud APIs or
consoles)
• Initial deployment: Save 67% to 85%
• Ongoing maintenance: Save 50%
• Re-using existing cloud assets: Save in excess of 90%
• Use Case Examples (Gains over in-house or hosted
alternatives)
• Autoscaling: Save 88%
• Batch Processing: Save 69% to 75%
• Repeatable Configurations: Save 60% to 70%

45. april25-26
sanfrancisco
cloud success starts here
Questions?