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VMware vCenter Chargeback
Cost Accounting for the Virtual Environment
Agenda
VMware’s Vision for Virtualization Management
Why Chargeback is Important in the Virtual Datacenter
Introducing VMware vCenter Chargeback
VMware vCenter Chargeback Demo
44
The Goal
IT asService
Provider
Just like…..
Inexpensive, pay as you go, pay for what you use
Ubiquitously available
Reliable
Choice of providers
55
The Management Challenge Today
• Server• Storage• Network• etc
Component-LevelManagement
Service-LevelManagement
IT manages infrastructure components
IT is measured on business outcomes
Reliable email service
VMware Uniquely Enables Service-Level Management
The Only Complete Stack for the Private Cloud
VMware vSphere 4The industry’s leading virtualization platform
vCenter Product FamilyUnified control center for SLA-driven
management across dynamic infrastructure
77
vCenter Management Product Family
88
VMware vCenter Product Family Delivers
EFFICIENCY
CONTROL
FLEXIBILITY
•Drives operational efficienciesand savings
•Reduces opex by 50%
•Leverages power of virtualization•Delivers broadest and deepest capabilities for service-level management
•Enables IT to change and respond quickly
•Works with all ESM tools for seamless end-to-end datacenter management
99
Virtualization Fundamentally Changes the Game
New Considerations… New items and relationships not
present in physical environment Dynamic and fast growing
environment
VMs Snapshots / Clones
Templates
Has anyone seen my VM?
…and New Opportunities! Enables greater automation Properties solve IT management
problems in a new way
1010
Agenda
VMware’s Vision for Virtualization Management
Why Chargeback is Important in the Virtual Datacenter
Introducing VMware vCenter Chargeback
VMware vCenter Chargeback Demo
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
Why Is A New Model Needed?
“Server virtualization and the virtual machine (VM) sprawl it's creating will force most IT organizations to re-evaluate their chargeback positions.
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
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
not free
Manage IT priorities by using costs to influence customer
behavior
Virtualization Increases the Need for Chargeback
Only 5% specified chargeback in June 2007 56% specified chargeback in February 2008
What is your biggest challenge with respect to managing server virtualization environments?
Number of respondents = 102Source: Gartner (February 2008)
Number of respondents = 115Source: Gartner (June 2007)
Chargeback Requirements
GeneralTransparency between IT and the Business
BusinessUnderstanding the costs of rolling out new VMsAbility to understand the costs of running & maintaining their services
ITDetermine costs depending on required tier of serviceA way to automatically track and report on resource usage across the organization
Agenda
VMware’s Vision for Virtualization Management
Why Chargeback is Important in the Virtual Datacenter
Introducing VMware vCenter Chargeback
VMware vCenter Chargeback Demo
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 understand how much they are paying for resources and how much goes to unused, allowing them to optimize resource consumption & costs
Account, monitor, and report on costs associated with your virtual infrastructure
Key FeaturesFixed, allocation, and utilization based costing
Charge different amounts for tiers of infrastructure
Schedule reports & email results
vCenter Chargeback Overview
Chargeback Hierarchy
Flexible model for determining cost accounting structure
Cost Centers, Organizations, Business Units, VM Types, etc
Single chargeback hierarchy spans multiple vCenters for enterprise-wide management
Hierarchy model provides the basis for determining costing structures and delivery reports
Flexible model for determining cost accounting structure
Cost Centers, Organizations, Business Units, VM Types, etc
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
Costing Models
Start simple and move to a advanced chargeback model over time
Compare between models by configuring different reporting options
Ensure the chargeback model can align with organizational requirements
Flexible costing options mix & match between models
Start simple and move to a advanced chargeback model over time
Compare between models by configuring different reporting options
Ensure the chargeback model can align with organizational requirements
Flexible costing options mix & match between models
Fixed Costing
Fixed cost for a VM instance
Allocation Based Costing
Variable costs per VM based on allocated resources
Utilization Based Costing
Variable costs per VM based on actual resources utilized
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
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
Disk I/O – GB used $ .05
Network I/O – GB used $ 0.0
Not sure what your costs are? Use the VMware cost model calculator
Multiple Rate Factors
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
Multiple rates can be added to account for use of higher cost storage, servers, etc.
Distinguish between costs of development vs. production systems
Increase rates to account for additional services such as backup, disaster recovery, etc
Multiple rates can be added to account for use of higher cost storage, servers, etc.
Distinguish between costs of development vs. production systems
Increase rates to account for additional services such as backup, disaster recovery, etc
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 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 costs
Software Licenses
Power/Cooling People Custom Fixed Costs
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 templates to address different VM costing plans
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 templates to address different VM costing plans
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
Production VM
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
Scheduled reports can be sent as PDF to email recipients or made available through Web UI
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
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
Consistent look-and-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
Summary
VMware vCenter Chargeback delivers cost accounting for theentire virtual infrastructure in 3 steps:1. Create the hierarchy that makes sense for IT and the business2. Enter costs (variable and fixed)3. Report and bill back to the business
Features Fixed, allocation, and utilization-based costing Charge different amounts for tiers of infrastructure Schedule reports & email results
Benefits Improve resource utilization Optimization of budgets
Agenda
VMware’s Vision for Virtualization Management
Why Chargeback is Important in the Virtual Datacenter
Introducing VMware vCenter Chargeback
VMware vCenter Chargeback Demo
• Design your chargeback hierarchy based on organizations, VM Types, applications, etc
• Drag-n-drop VMs from one or more existing vCenters into chargeback hierarchy
• Define multiple cost models for various time periods & billing policies
• Cost models are associated with the chargeback hierarchy during report generation
• Define timeframes for the period that the costing model will be in affect
• Select from billing policies covering fixed costs, allocation, utilization, or a combination
• Determine the costs associated with individual computing resources
• Disable any unneeded computing resources as needed
• Chargeback Calculator spreadsheet will help determine these costs
• Templates allow you to set up costs associated with common VM types
• Cost templates allow you to set costing rate factors and fixed costs associated with each VM deployment
• Rate factors allow you to increase the costs for different deployment types
• Example: Production VMs cost more since they are running on high end servers, tier 1 storage, etc
• Fixed costs allow you to charge for power, software, availability services, etc associated with each VM deployment
• Example: Production VMs have additional monthly costs for HA, DR, and power consumption
• Cost Templates can be quickly added to chargeback hierarchy through cost configuration
• Custom cost configurations can also be set up manually
• Generate a chargeback report at any level of the hierarchy
• Create high level summary or detailed costing reports
• Compare two cost models side by side to determine differences between allocation and utilization based costing
• Set up individual reports for each organization in the hierarchy
• Reports can be scheduled and archived for later viewing
• Configure reports to determine which resources to display
• Costing model will automatically determine the default options based on enabled computing resources
• Instantly generate reports or schedule them to run on an ongoing basis
• Schedule reports are automatically archived for viewing, exporting, emailing, etc
• Reports become instantly available through the report interface
• Availability to export reports in PDF, word, excel, or email them out
Thank You!
