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Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.
Cloud Provider Portfolio SelectionIlyas Iyoob, PhD
Director, Advanced Analytics
Aaron Yan, M.S.Operations Research Analyst
Selecting a set of providers to support the full application portfolio
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.2
Case StudyLarge IT Services Company
3,500 million(2013)
18,000worldwide
LegalTax & AccountingFinance & Audit
Risk & Compliance
Healthcare Ops
Over 35 countries in:
EuropeAsia Pacific
North AmericaLatin America
Revenue Employees Markets Operations
Question 1
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.3
Question 1 - Which apps should be moved to the cloud?
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.4
Question 1 - Which apps should be moved to the cloud?
… ~ 500 apps
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.5
Question 1 - Which apps should be moved to the cloud?
… ~ 500 apps
Gravitant’s Cloud Screener helps answer this questionhttp://www.gravitant.com
/product-features/cloud-application-assessment/
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.6
Question 1 - Which apps should be moved to the cloud?
… ~ 500 apps
Example: TyMetrix and BankOrion should not be moved to the cloud because:- TyMetrix is a core business app for this company, so it should be kept in-house- BankOrion has financial data that is subject to very high compliance requirements
Not all apps should move to the cloud – in fact, 50 of them shouldn’t
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.7
Question 1 - Which apps should be moved to the cloud?
… ~ 500 apps
More on application screening some other time. Let’s focus on the next question which is the focus of this case study…
Question 2
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.8
Question 2 - Which provider should be selected for each app?
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.9
Question 2 - Which provider should be selected for each app?
… ~ 500 apps
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.10
Question 2 - Which provider should be selected for each app?
… ~ 500 apps
8 region
s
2 region
s
13 region
s
4 region
s
~ 20 providers
…
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.11
Question 2 - Which provider should be selected for each app?
… ~ 500 apps
8 region
s
2 region
s
13 region
s
4 region
s
~ 20 providers
…Solution
Methodology
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.12
Question 2 - Which provider should be selected for each app?
• Current Solution: Solve each app individually
Gravitant’s Cloud Comparehttp://tools.gravitant.com/cloud-compare-for-cloud-applications/
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.13
Question 2 - Which provider should be selected for each app?
• Current Solution: Solve each app individually
Gravitant’s Cloud Comparehttp://tools.gravitant.com/cloud-compare-for-cloud-applications/
• Suggested Solution: Solve for entire application portfolio simultaneously
To account for- Dependent apps that should be placed together- Conflicting apps that should be placed apart- DR environments that should be placed apart from Prod environments- Volume discounts from providers
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.14
Question 2 - Which provider should be selected for each app?
• Current Solution: Solve each app individually
Gravitant’s Cloud Comparehttp://tools.gravitant.com/cloud-compare-for-cloud-applications/
• Suggested Solution: Solve for entire application portfolio simultaneously
To account for- Dependent apps that should be placed together- Conflicting apps that should be placed apart- DR environments that should be placed apart from Prod environments- Volume discounts from providers
Few providers(high vulnerability)
Many providers(low tractability)
vs
Tradeoff
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.15
⋮
Apps
ProvidersProblem
Statement
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.16
⋮
Apps
ProvidersProblem
StatementAssign providers to apps so the constraints are satisfied while minimizing cost
Constraints• Coverage• Performance• Apps together• Apps apart
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.17
⋮
Apps
ProvidersProblem
StatementAssign providers to apps so the constraints are satisfied while minimizing cost
Constraints• Coverage• Performance• Apps together• Apps apart
In other words,fill this table out so nothing breaks! and maybe save some money too…
Formulation
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.18
Mathematical Formulation
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.19
Mathematical Formulation
Minimize cost of operating in the cloud
Satisfy performance requirements of every app
Meet coverage needs for every app
Group apps that need to be on the same infrastructure
Split up apps that need to be on separate infrastructures
Assign every app to some provider Result
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.20⋮
Apps
Providers
Result
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.21⋮
Apps
Providers
Most apps can be in AWS except for a few.
Impact
Result
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.22⋮
Apps
Providers
Most apps can be in AWS except for a few.
MarkLogic and IntelliConnect have been put in Azure because its incremental VM sizes are better than AWS.
Impact
Result
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.23⋮
Apps
Providers
Most apps can be in AWS except for a few.
MarkLogic and IntelliConnect have been put in Azure because its incremental VM sizes are better than AWS.
Oracle needs to be apart from others for data security, so it ends up in Google.
Impact
Result
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.24
ImpactRadical Approach(everything on AWS)
$571k/month
87% coverage
Customer had significant shadow IT with AWS
*Coverage: capabilities and feature sets of a CSP that are needed for specific applications to function optimally
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.25
ImpactRadical Approach(everything on AWS)
Conservative Approach(everything on Azure)
$571k/month
87% coverage
$684k/month100% coverage
Customer had significant shadow IT with AWS
Customer’s existing environments were Windows based
*Coverage: capabilities and feature sets of a CSP that are needed for specific applications to function optimally
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.26
ImpactRadical Approach(everything on AWS)
Conservative Approach(everything on Azure)
Optimal(80% AWS, 7% Google,13% Azure)
$571k/month
87% coverage
$684k/month100% coverage
$553k/ month100% coverage
Customer had significant shadow IT with AWS
Customer’s existing environments were Windows based
*Coverage: capabilities and feature sets of a CSP that are needed for specific applications to function optimally
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.27
Conclusions
• Practical conclusions▫ Realized savings of 15-20% per year
This equates to $1.5M saved per year (from just 15 apps). Replicate this exercise for the rest of the 450 apps to realize much more savings!
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.28
Conclusions
• Practical conclusions▫ Realized savings of 15-20% per year
• Theoretical conclusions▫ Coverage constraints simplify the problem▫ Performance constraints simplify the problem▫ Apps together constraints simplify the problem▫ Apps apart constraints complicate the problem
This equates to $1.5M saved per year (from just 15 apps). Replicate this exercise for the rest of the 450 apps to realize much more savings!
Proprietary and Confidential, Copyright © 2014 Gravitant, Inc.29
Conclusions
• Practical conclusions▫ Realized savings of 15-20% per year
• Theoretical conclusions▫ Coverage constraints simplify the problem▫ Performance constraints simplify the problem▫ Apps together constraints simplify the problem▫ Apps apart constraints complicate the problem
A full survey of Operations Research problems in Cloud Computinghttp://www2.isye.gatech.edu/~adieker3/publications/cloudOR.pdf
This equates to $1.5M saved per year (from just 15 apps). Replicate this exercise for the rest of the 450 apps to realize much more savings!