Reducing the Cost of IT Reducing the Cost of IT Operations – Is Operations – Is

automation always the automation always the answeranswer

Aaron Brown and Joseph Aaron Brown and Joseph HellersteinHellerstein

Salvation Through Salvation Through AutomationAutomation

►Businesses want to drive down the Businesses want to drive down the cost of IT administrationcost of IT administration 50% - 80% of IT budgets devoted to 50% - 80% of IT budgets devoted to

operational costsoperational costs People are expensive, so it would be People are expensive, so it would be

better if they could be disposed ofbetter if they could be disposed of If a college drop-out can get an MCSE in a If a college drop-out can get an MCSE in a

week, then surely an automatic week, then surely an automatic administration system should be possibleadministration system should be possible

Irony of AutomationIrony of Automation

►Cost automation is often more Cost automation is often more expensive than manual operationexpensive than manual operation Automation full of hidden costsAutomation full of hidden costs

►Adapting systems to automationAdapting systems to automation►Up front costsUp front costs►Automatic-System administration costAutomatic-System administration cost►More complex failure scenariosMore complex failure scenarios

We need a way to determine when We need a way to determine when automation is cost effectiveautomation is cost effective

Example CaseExample Case

►Software distributionSoftware distribution Common to all IT operationsCommon to all IT operations Most significant activity performed by ITMost significant activity performed by IT

►Operations can be distilled to into a Operations can be distilled to into a process or processesprocess or processes Described by a swim-lane chartDescribed by a swim-lane chart

Hidden CostsHidden Costs

► Automated operation is more complex than Automated operation is more complex than manual operationmanual operation

►New roles for human operatorsNew roles for human operators Develop packages suitable for the automation Develop packages suitable for the automation

systemsystem New failure possibilitiesNew failure possibilities

►Still have to manually check that the automated system Still have to manually check that the automated system actually workedactually worked

►Diagnosis is more complicatedDiagnosis is more complicated►What happens if the automated system fails?What happens if the automated system fails?

7% of the time it does7% of the time it does

Automation CostAutomation Cost

► Fixed costs Fixed costs Costs relating to the setup of the automation Costs relating to the setup of the automation

systemsystem

► Variable costs Variable costs Costs relating to the per-instance operation of the Costs relating to the per-instance operation of the

systemsystem

► Fixed costs continue to factor into the systemFixed costs continue to factor into the system IT operations often have limited lifetimesIT operations often have limited lifetimes

►Requires reconfiguration of the Automation SystemRequires reconfiguration of the Automation System

IT processes are not always widely replicatedIT processes are not always widely replicated►25% of packages installed on fewer than 15 targets25% of packages installed on fewer than 15 targets

Automation Cost ModelAutomation Cost Model

►VariablesVariables CCmm

ff => Fixed cost for manual process => Fixed cost for manual process CCmm

vv => Variable cost for manual process => Variable cost for manual process N => Lifetime of the ProcessN => Lifetime of the Process CCaa

ff => Fixed cost for automatic process => Fixed cost for automatic process CCaa

vv => Variable cost for automatic process => Variable cost for automatic process►Then:Then:

CCm m = C= Cmmf f + N+ N CCmm

vv

CCaa = C = Cmmf f ++ CCaa

f f + N+ N CCaavv

Qualitative ObservationsQualitative Observations

►CCmmv v > C> Caa

vv

The whole point for AutomationThe whole point for Automation

►CCmmv v <= C<= Caa

ff

Replication is necessary to see the Replication is necessary to see the benefits of automationbenefits of automation

►N > CN > Caaff / (C / (Cmm

v v – C– Caavv))

Where CWhere Caa < C < Cmm

Typical casesTypical cases

►CCmmv v = 10 – 20 hours= 10 – 20 hours

►CCaav v = 1 – 5 hours= 1 – 5 hours

►ThereforeTherefore 5 – 20 targets per install to be cost 5 – 20 targets per install to be cost

effectiveeffective Typical department: 15% - 30% of installsTypical department: 15% - 30% of installs

Leverage and GeneralizationLeverage and Generalization

►L = CL = Cmmvv / C / Caa

vv

Benefit obtained from automationBenefit obtained from automation

►G = CG = Caaff / C / Cmm

vv If setting up automation is more difficult If setting up automation is more difficult

than doing the installs manuallythan doing the installs manually

►G/N = 1 – 1/LG/N = 1 – 1/L

Making it workMaking it work

►Reduce GReduce G Modularity in CModularity in Caa

ff

► Increase LIncrease L► Increase NIncrease N

Increase uniformity among hardware and Increase uniformity among hardware and softwaresoftware

Obvious ObservationsObvious Observations

►Automation creates extra systems to Automation creates extra systems to deploy and managedeploy and manage

►Automation introduces extra system Automation introduces extra system setup costsetup cost

►Automation failure is more Automation failure is more complicated to analyze and deal withcomplicated to analyze and deal with