Justifying capacity management

by demonstrating the ROI

Metron

Showing value is critical for success

www.metron-athene.com

Metron-Athene

• Established 1986

• Stable ownership

• Consistent Focus on CM

• Industry Leadership

• Growing US team

Athene

Control Center

Capacity Database

Data Source

FrameworkAcquire DB/Application

Virtual Server Custom

z/OS, HP-UX, AIX, Solaris, Linux

Objectives

• ROI definition

• Systems infrastructure sprawl

• Indicators of unmanaged capacity

• Scope and direction

• Variables and information gathering

• ROI models and cost benefit analysis

Return on Investment

One definition of ROI...

"For a given use of money in an enterprise,

the ROI (return on investment) is how much

profit or cost saving is realized. An ROI

calculation is sometimes used along with

other approaches to develop a business

case for a given proposal.”

Capacity Management ROI

Infrastructure Sprawl

• How much of it is being

used efficiently?

• How do you define

efficient, and does it

apply uniformly?

• Which systems will run

out of capacity?

• What visibility is

required to make it run

efficiently?

Capacity Management ROI

Indicators of unmanaged capacity

• Capacity related incidents

• Reactive mode of operation for capacity incidents

• Lack of visibility into system resource utilization

• Poor performance that is the norm

• No ownership of capacity concerns

• Using excessive hardware to ensure capacity

Capacity Management ROI

Scope to deliver high value returns

Capacity Management ROI

More components to look at now

Firewall

ProxyVirtualWeb

Servers

DirectoryServer

Load Balancer

App Servers

DB Server

Mainframe

Partner App

Web Services

Msg. Broker

Firewall

VirtualWeb

Servers

App Servers

Shared Service

SharedDatabase

ClientsSLAs

ClientsSLAs

Capacity Management ROI

What variables are key to determine ROI?

• Resource utilizations

• Growth in resource utilizations

• Count of hardware/software assets

• Cost of hardware/software assets

• Maintenance cost for hardware

• Capacity related incidents

• Average cost of incidents

• Risk of capacity related incidents

• Capacity related labor costs

Capacity Management ROI

Component ROI model and cost benefit analysis

Capacity Management ROI

ROI model and cost benefit analysis

Summary and Final Thoughts

Justification for doing capacity management many times will

involve showing a return on investment. Doing this can be

difficult with so many variables involved.

We outlined some key variables that should be included in the

analysis, and presented two spreadsheet models that utilizes

those variables.

• Doing capacity management is worth the effort, and

demonstrating that argument with numbers can help to

show it quantitatively.

Thank you for attending

Dale Feiste

Metron-Athene Inc.

dale@metron-athene.com

Justifying capacity management by

demonstrating the ROI

The End